The Sluggish Climb: Why Corporate India Still Struggles with Women in Leadership
Despite increasing awareness and regulatory pushes, women remain significantly underrepresented in India’s corporate leadership. A recent report by Primeinfobase.com reveals a persistent “leaky bucket” phenomenon, where women gradually drop out of the leadership pipeline as they ascend the corporate ladder. Although representing 23% of employees this figure dwindles to just 5% at the CEO level.
The Boardroom: Progress Driven by Regulation, But Momentum Slowing
The most visible progress has been at the board level. As of February 2026, 98% of companies listed on the NSE main board have at least one woman director, a significant jump from 97% the previous year and a mere 5% in 2014 when regulations mandating female representation were first introduced. Currently, women hold 21% of all board seats. Yet, the pace of improvement is slowing, suggesting that regulatory compliance, rather than a genuine commitment to diversity, initially drove the change.
Interestingly, the initial wave of appointments often involved women relatives of promoters or individuals within existing networks. This diluted the intended impact of fostering broader gender diversity and creating opportunities for professional women leaders.
Beyond Compliance: The Challenges of Reaching the Top
The data highlights a stark contrast between board representation and executive leadership. While 28% of independent directorships are held by women, this number plummets to just 10% for executive directorships. Only 119 companies – 5% of the total – have a woman MD or CEO. A concerning 69% of these women leaders come from promoter families, indicating a limited pathway for professional women to reach the highest echelons of Corporate India.
Outside of promoter groups, professional executive women directors constitute a mere 7% of such positions. Only 6% of companies have a woman chairperson, and nearly half of those are also from promoter families.
The Pay Gap: A Persistent Disparity
The gender disparity extends to compensation. In FY25, the median remuneration for male executive directors was Rs 120 lakh, a substantial 74% higher than the Rs 69 lakh earned by their female counterparts. The gap widens further for non-promoter executive directors, with men earning a median of Rs 104 lakh compared to Rs 43 lakh for women. Even at the Key Management Personnel (KMP) level, men earned approximately 77% more than women on average. The median pay for male employees was 34% higher than for female employees.
A notable exception exists for independent directors, where women earn slightly more – a median of Rs 4.90 lakh compared to Rs 4.80 lakh for men.
Sectoral Variations: Where Women are Making Inroads
Sectoral analysis reveals varying levels of female representation. Diversified, healthcare, and IT companies lead with 23% female directors, while the energy sector lags behind at 17%. In terms of overall employee and worker representation, IT demonstrates the highest female participation, while commodities, industrials, and utilities sectors report the lowest.
Looking Ahead: Potential Future Trends
Several factors could shape the future of women in leadership in India. Increased focus on Environmental, Social, and Governance (ESG) factors by investors may drive companies to prioritize diversity and inclusion. Greater emphasis on transparent pay equity policies and robust mentorship programs will be crucial. Addressing the systemic barriers that contribute to women leaving the workforce mid-career – particularly related to childcare and caregiving responsibilities – is paramount.
The rise of remote work and flexible work arrangements, accelerated by recent global events, could also create more opportunities for women to balance work and personal commitments. However, these benefits must be accessible to all, not just those in specific roles or industries.
Pro Tip:
Companies should actively implement sponsorship programs, where senior leaders champion and advocate for high-potential women, helping them navigate the complexities of the corporate landscape and access critical opportunities.
FAQ
Q: What is the current percentage of women CEOs in India?
A: Currently, women account for 5% of CEOs in India’s listed companies.
Q: Has the number of women on corporate boards increased?
A: Yes, as of February 2026, 98% of companies listed on the NSE main board have at least one woman director.
Q: Is there a pay gap between male and female executive directors?
A: Yes, the median remuneration for male executive directors is significantly higher than that of their female counterparts.
Q: Which sectors have the highest representation of women directors?
A: Diversified, healthcare, and IT companies have the highest representation of women directors.
Did you know? Regulations mandating female representation on boards were first introduced in 2014, leading to a significant initial increase in the number of women directors.
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