Ruth Bültmann is acting as a professional independent certified director (INSEAD, ILA), Qualifizierter Aufsichtsrat (Deutsche Börse AG) and certified financial expert (Deutsche Börse AG), specialised for audit committees. She has extensive board experience and acts as board chair or committee chair/member on a regular basis.

Paperjam: What are the main challenges you’ve faced as a female independent board member?

Ruth Bültmann: Being an independent board member is a challenging role, regardless if you are a man or a woman. Independent directors are ‘outside directors’ serving on boards for many different reasons but acting in the best interest of the entity (i.e. improving strategy and governance, fostering compliance, providing leadership and serving a liaison between shareholders and management). Independent directors play a huge role in the corporate governance of an organisation. In my view, their separation from the day-to-day management of the company is an asset. The unique vantage point allows these directors to provide unbiased views regarding the performance and compliance of an organisation as a whole but from outside. This helps the company make better decisions to achieve its goals in the present and the future. Providing outside opinions is not always pleasant. The challenge as independent director hence comes with the role itself and is not necessarily related to gender.

How do you handle resistance or skepticism directed at you?

In general, I try to remain open but to rely on my personal inner foundation, on my inner values and my understanding of content. Being able to argue is important, listen, accept different views and consider the positive of diverging opinions. Practice self-reflection: What are the lessons learnt from a situation or a complex problem? Could you deal with it differently? Observe your colleagues and board dynamics, learn from others, request feedback. If scepticism is related to a position or statement in the boardroom, it often helps to re-clarify the role as an independent director.

Do you believe gender equality is improving within boards of directors? 

Gender equality is improving within board of directors, slowly but steadily. There are many global initiatives and efforts to address existing barriers to gender equality in leadership and employment taken across OECD and G20 countries. According to the OECD (2022), the percentage of women on boards has grown significantly since the 2013 OECD Gender Recommendation. However, women continue to comprise only a quarter of board members in listed companies globally. The evolution shows that those jurisdictions who have initiated quotas or targets for board composition in listed companies have achieved a greater level of board gender diversity than other jurisdictions.

The Gender Balance on Corporate Board Directive entered into application end of 2024 with targets to be met by companies by 30 June 2026. It includes clear representation targets and a transparent appointment process to improve gender balance. Member states will have to publish a list of companies that reached the gender balance targets making it obvious, that other players are not compliant. And there are additional initiatives to foster the talent pipeline of qualified female candidates for boards (such as pressure from institutional investors, government-led or private sector-led initiatives).

To conclude, without regulation, changes will most likely be limited. However, it is important for me to strengthen that the choice of a candidate for a board shall depend on required qualifications and skills--both for men and women.

What is your opinion on quotas for women on boards?

Isn’t it a statement per se that we ask this question still in 2025? I am really not a fan of quotas but as mentioned earlier quotas certainly raise awareness and create traction. But they’re a sensitive topic, as they do not necessarily fulfil their purpose. The question is: How can we ensure the right mix of cultural, gender background and competences on a board in a world of rapid demographic change? Boards should be as diverse as society and composed of qualified individuals.

Woman are not ‘small men’ and should be accepted as full participants in the economic ecosystem in accordance with their qualifications and skills--like men. Using simple quotas to push women in positions may be counterproductive and create other types of discrimination.

In some countries, however, quotas are the only means of instigating change, for example in Germany where major German companies still have male-dominated executive boards. The latest report by the Allbright Foundation (2023), a Swedish-German nonprofit organisation that works to promote more women and diversity, provides interesting insights into the situation of women in leadership positions. The result: there is some progress, but it seems there is still a long way to go.

If progress on gender equality in Germany continues at the pace of the past five years, it will take another 18 years for every second executive position in publicly listed companies to be held by a woman, according to the report. Early adopters of gender quotas such as Norway show greater diversity on boards. Norway is one of four jurisdictions (in 2021, OECD) that have at least 40% of each gender at board level (France, Iceland and New Zealand are the others). Hence, quotas have helped to increase the required percentage.

As a female board member, do you feel a particular responsibility to advocate for gender parity and inclusion?

Sure, to consider a woman’s candidacy for the board if there is an open position. I would, however, always advocate for competence and skills and for the best fit to a role (be it women or men). By supporting other women, you can foster a sense of solidarity and empowerment. Diversity drives diversity. Companies with women on the board are more likely to have added new directors, including more women, to the board. Companies with female leaders also have more women in executive positions. This in turn helps to build the pool of female board candidates.

In your view, how does diversity affect a board’s performance?

The business case for board diversity is clear, with numerous studies showing that companies with diverse boards tend to outperform their peers financially. According to McKinsey data (“The Journey of Leadership”) on the topic of diversity, equity and inclusion (DEI) the more diverse a company is, and the more diverse a boardroom is, the better that company performs. However, for DEI initiatives to truly drive transformational impact across a company, they need to be embraced by leaders, and hence must start in the boardroom. ESG initiatives in particular testimony a company’s commitment to social responsibility and effective governance.

What solutions or policies could foster better gender parity?

Context, cultural environment and timing matter. Different jurisdictions are at a different stage of maturity with their ‘women on board’ journey. Although mandatory thresholds are more likely to be reached then simple recommendations, some jurisdictions have achieved progress via additional initiatives (besides quotas and targets) such as government and industry initiatives or listing rules.

In their listing rules, Stock Exchanges may require issuers to have a board diversity policy and provide disclosures on related targets, plans and timelines in annual reports. Some countries have introduced targets in their respective corporate governance codes, company laws and listing rules, and/or applicable on a ‘comply or explain’ (and disclose) basis. According to the OECD, sanctions and fines for non-compliance exist in almost all jurisdictions that have introduced quotas, but may take various forms.

A more appealing way to look at it: how could incentives look like for companies that are best in class, contributing to a more gender-equal world? Studies show that companies who have a female CEO and more women on their boards are more appealing for talents. And with ESG disclosures, organisations have to show that they practice what they preach.

What advice would you give to a woman hesitating to take this path?

First become a (dependent, executive) director in a well-run company before considering the journey as independent director. Gain sufficient experience on boards and in boardrooms. Test your capacities and limits, your resistance to stress: Are you open to change, are you able not to give up, are you able to stand up and speak? To what extend are you financially and intellectually independent? Discover and find your own strategy to copy with change and stress.

Any moments in your career that illustrate the reality of being a woman in this role?

I have no specific anecdote to share here. My personal opinion is that I have been the beneficiary of a lot of great opportunities in Luxembourg because I am a qualified woman. I am truly committed to make it a success and have a strong perseverance. If you are adding value, you are found! Luxembourg is an amazing place that offers huge opportunities for internationally minded people and I am grateful for being part of its rich business community.

What advice would you give to a young woman who wants to make her mark in society?

The best investment is an investment in yourself, in your skill development. I did many professional trainings and certifications on my own initiative. In addition, I recommend to set yourself goals, put effort into your personal and professional growth, use interesting professional networks. Use a mentor and/or a coach. Create a close circle around you of trusted friends, and be aware--you need grit!”