A Profit Crisis Disguised as a Diversity Problem
Australia’s FMCG industry doesn’t have a diversity issue—it has a profit issue. And the two are inextricably linked.
Despite years of rhetoric around inclusion and gender equity, only 9% of FMCG CEOs are women. Just 33% of executive leadership team (ELT) roles are held by women. And the CEO pipeline—COO, CFO, Group Executive roles—remains 82% male. This is far behind sectors like finance and tech, where some progress—however incremental—is at least measurable.
This isn’t cultural lag. It’s a strategic failure. Because the data is unequivocal: companies with gender-diverse leadership perform better financially, innovate faster, and retain talent more effectively.
The Numbers We Can’t Afford to Ignore
In 2023, one in four new CEO appointments in FMCG went to women. In 2024, that figure has halved to just 12.5%.
Turnover is costly. Replacing an executive costs 213% of their annual salary, according to widely accepted global research. But far more damaging is the talent you never engage in the first place.
The Customer Disconnect
Women drive 75–85% of consumer purchasing decisions in Australia—particularly in household, personal care, and food categories. Yet fewer than 1 in 10 FMCG CEOs are women.
That’s a glaring disconnect. In an industry so dependent on brand loyalty, customer insight, and emotional intelligence, how can boards justify a leadership structure that fails to reflect the very people they serve?
Four Forces Blocking Progress
1. Lack of Formal Gender Targets
Only 40% of ASX300 companies have adopted 40:40:20 targets. Those that do are 3.6x more likely to achieve gender parity at senior levels.
2. Exclusion from CEO Pipelines
82% of COO, CFO, and Group Executive roles are still held by men—effectively blocking the pathway to CEO.
3. Inflexible Career Design
Women over 35 are twice as likely to work part-time. 38% of working mothers say they would reduce hours or leave their role entirely if flexibility was withdrawn.
4. Cultural Backlash
Public resistance to diversity programs is rising. In 2024, 54% of Australians said gender equality initiatives had “gone far enough,” up from 41% in 2019.
Sources: CEW Census 2024, IPSOS Gender Equality Report 2024
Boards Must Lead, And Be Held Accountable
Despite growing scrutiny, many FMCG boards remain largely male.
As of 2024, just 19.3% of ASX-listed boards have a female Chair, and only 3.4% have a female CEO.
It’s no longer acceptable for boards to view gender diversity as a ‘HR issue.’ It’s a governance imperative—and a reputational risk. Investors are increasingly demanding visibility into ESG credentials, including diversity. And gender-balanced boards correlate strongly with long-term value creation.
The Innovation Dividend
Companies with female CEOs see a 5% uplift in market value—worth $79.6 million per company. Gender-diverse teams generate 38% more innovation revenue, and are 25% more likely to financially outperform their peers.
Unilever, for example, achieved gender balance across management globally by 2021—proof that even complex, decentralised FMCG giants can lead by example.
The question isn’t whether diversity works. The data proves it. The only question is why the Australian FMCG sector still treats it like a side project.
What Needs to Change Now
FMCG companies must:
- Set measurable gender targets—and tie them to executive KPIs.
- Rethink how executive pipelines are built and who gets visibility.
- Make flexibility a business standard—not a working-mother concession.
- Publicly report leadership demographics and gender pay metrics.
- Champion the commercial value of gender equality—not just the optics.
This isn’t just a fairness issue. It’s a question of who gets to lead Australia’s economic future—and who gets left behind.
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