Ageing Boards and Gender Diversity in India’s Corporate Sector
India’s corporate landscape is witnessing a concerning trend as the boards of the top 100 companies grapple with ageing leadership and stagnant diversity metrics. According to the latest annual corporate governance survey by Excellence Enablers, the share of women directors has decreased to 20% in FY26, down from 21% in FY25. Simultaneously, the average age of board members has risen to 64 years, reflecting a slow-changing boardroom that raises questions about the future of corporate governance in the country.
The survey highlights that women now account for only 49 directors among the top 100 companies, a decline from 52 in FY25. The number of independent directors under the age of 50 has also seen a significant drop, from 43 in FY23 to just 25 in FY26. This stagnation in diversity is further compounded by the fact that only eight companies have no women among their independent directors, while 53 have just one.
Declining Representation of Women Directors
The representation of women in key managerial roles has also taken a hit, with only 39 women in such positions in FY26, down from 40 in FY25. The numbers indicate a troubling trend where the percentage of women directors has remained stagnant over the years, with figures standing at 20% in FY23 as well. The marginal increase in the number of independent women directors, from 138 to 144, does little to offset the overall decline in female representation on boards.
The lack of progress in gender diversity raises critical questions about the commitment of these companies to fostering an inclusive environment. The data reveals that while some companies have made strides in appointing women directors, the overall landscape remains largely unchanged, with many firms still lagging behind in achieving gender parity.
The Age Factor: Implications for Corporate Governance
The average age of directors on these boards has risen from 63.5 years in FY25 to 64 years in FY26. This trend is concerning as it suggests a lack of fresh perspectives and innovative thinking that younger directors might bring. The youngest independent director, who was 36 in FY23, is now 39, indicating that even the entry-level positions are not attracting younger talent.
The decline in the number of independent directors under 50 years old, which now constitutes just 5.3% of all independent directors, raises alarms about the future leadership pipeline. With an ageing board, companies may struggle to adapt to rapidly changing market dynamics and technological advancements, potentially hindering their long-term growth and sustainability.
Rising Financial and Operational Risks
In addition to the demographic challenges, the survey identified a growing range of financial, operational, and geopolitical risks that companies are facing. In FY26, at least 97 companies rated these risks among their top three concerns, an increase from 92 in FY25. The rise in geopolitical risks, flagged by 52 companies, underscores the need for robust risk management strategies in an increasingly volatile global environment.
Furthermore, succession planning has become a critical focus for these companies, with 55 firms referring to it for their boards and 83 for senior management. This emphasis on succession planning highlights the recognition of the need for strategic foresight in leadership transitions, particularly as the average age of board members continues to rise.
Corporate Social Responsibility and Compliance Challenges
On the corporate social responsibility (CSR) front, the number of companies reporting unspent funds has increased to 36 in FY26, up from 29 in FY25. This trend indicates a growing disconnect between corporate commitments to social responsibility and actual implementation. The increase in whistleblower complaints, which rose to 1,129 in FY26, further emphasizes the need for transparency and accountability within these organizations.
In terms of compliance with the Prevention of Sexual Harassment (POSH) rules, six complaints were upheld across the 100 companies in FY26. While the number of companies reporting 100% resolution of POSH complaints rose to 38, the overall figures suggest that there is still significant work to be done in ensuring a safe and equitable workplace for all employees.
| Metric | FY23 | FY25 | FY26 |
|---|---|---|---|
| Women Directors (%) | 20 | 21 | 20 |
| Average Age of Directors | 63.2 | 63.5 | 64 |
| Independent Directors < 50 (%) | 8.4 | 6.1 | 5.3 |
| Companies Reporting Unspent CSR | 21 | 29 | 36 |
| Whistleblower Complaints | 303 | 1,110 | 1,129 |
Conclusion: A Call for Change
The findings from the Excellence Enablers survey paint a stark picture of the current state of corporate governance in India’s top 100 companies. With ageing leadership, stagnant diversity, and rising risks, there is an urgent need for these organizations to reassess their governance strategies. Embracing diversity and fostering a culture of inclusivity are not just ethical imperatives but also essential for long-term success in an ever-evolving business landscape. The time for change is now, and the future of India’s corporate sector depends on it.
