Large Japanese companies urged to grow ranks of female executives
TOKYO >> The Japanese government has set a goal for large companies to have at least 30% of their executive positions filled by women by 2030, according to a draft compiled by the government’s Gender Equality Council that was expected to be adopted by the cabinet by the end of June.
The goal applies to companies listed on the Tokyo Stock Exchange’s Prime market, comprising large companies that operate internationally. It is intended to create momentum toward women being promoted more broadly.
The draft was for a key policy aimed at encouraging women’s participation in the labor force and improving gender equality. It was expected to be reflected in the Basic Policy on Economic and Fiscal Management and Reform in June.
The draft stated that private companies in Japan are “lagging far behind internationally” in the promotion of women to executive positions.
Now that investors in Japan and abroad are increasingly looking at gender ratios for company executives, “it is urgent for these firms to accelerate the promotion of women to executive posts for the growth of the Japanese economy,” the draft noted.
As a specific measure, the council is requesting that companies listed on the TSE’s Prime market appoint at least one female board member by 2025. It has also called for action plans to ensure that by 2030, at least 30% of executives at each company are women. The council will arrange for the TSE to incorporate the goal in its regulations by the end of this year.
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Disclosure for gender pay disparities was expected to be expanded as well. In 2022, it became mandatory for companies with at least 301 employees to disclose relevant information. The draft touched on expanding disclosures to include smaller companies.
To ease the burden of child rearing on women, the council also stressed the need for more men to take child-care leave and promoting the concept of dual- income couples sharing in child rearing. The draft also stipulated the establishment of a benefits system to ensure that income would not be reduced when parents of children under age 2 work shorter hours.
The TSE’s three segments include the Prime market; the Standard market, for businesses that mainly operate within Japan; and the Growth market, for emerging companies.
