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This study examined the composition of boards across 30 of the largest Portuguese companies from 2013 to 2023, focusing on gender, international representation, age diversity, and the presence of independent NEDs. The data, sourced from annual reports and governance filings, reveal both positive changes and areas for further development.
Board size has remained stable, at an average of 12 members both in 2013 and 2023. Executive members continue to represent around one-third of board members, with NEDs accounting for the remaining two-thirds.
The proportion of independent directors has risen from 29% to 35%, indicating an improvement in governance. Nevertheless, Portugal still lags behind other European countries, where independent representation is typically above 50%, highlighting the need for further progress. Only 20% of companies have boards with at least 50% independent members, and 10% have no independent board members at all, highlighting a deviation from governance best practices.
One area of concern is the continued prevalence of the combined CEO–Chairman role. In 2023, 30% of companies still have the same individual serving in both capacities. Moreover, the number of companies with a combined CEO–Chairman has increased slightly in the last 10 years. This trend suggests that corporate governance structures in this regard have not fully evolved toward best practice standards.
Gender diversity has seen significant improvements, with the percentage of women on boards rising from 10% in 2013 to 34% in 2023. However, Portugal still ranks lower than many European countries, where female representation is often closer to 40% or higher, especially in northern Europe. Moreover, most of this progress in Portugal is concentrated in non-executive roles, with 83% of female directors being NEDs, while only 17% hold executive roles. Leadership representation remains low, with just 7% of board Chairs and 4% of CEOs being female.
International diversity has improved slightly, with the percentage of foreign board members increasing from 14% to 18% over the decade. However, Portugal still falls behind more globalised markets such as the UK and Switzerland, where foreign representation is typically much higher. In Portugal, the vast majority of foreign directors held non-executive roles (94%), and only 6% were in executive roles. Foreign executives account for just 3% of all executive board members, and there are no foreign CEOs.
Age diversity has also shifted, with boards becoming older overall. The average age of board members increased from 56 years in 2013 to 58 in 2023, and there is a notable decline in the number of younger board members, particularly those in the 40–50 age range. This may raise concerns about generational diversity and the introduction of fresh perspectives.
Additionally, board turnover has been relatively low, with longer board tenures than in most other countries. Although stability can ensure continuity, this low turnover may limit the infusion of new talent and diverse viewpoints, potentially affecting the adaptability of boards.
In summary, although Portugal has made progress in areas such as gender diversity and board independence, it continues to lag behind many European peers, particularly in governance issues such as CEO–Chairman duality, independence of board members, leadership diversity, and international representation. Further efforts are needed to align Portuguese boards with global best practices and ensure that they are equipped to meet the demands of modern corporate governance and global investor expectations.
This study was conducted using publicly available information from 30 of the largest companies in Portugal, including all the listed companies. Board composition data were analysed for both 2013 and 2023, covering key aspects such as executive and non-executive representation, gender diversity, foreign representation, age distribution, and tenure. A total of 34 companies were analysed, out of which data for 26 companies were available for both 2013 and 2023. Due to factors such as company dissolution, company acquisition, establishment after 2013, or the lack of publicly available information, data for 4 companies were available only for 2013, and data for 4 other companies were available only for 2023.
The study focused on identifying trends in board diversity, including the evolution of gender and foreign representation, changes in the composition of independent Non-Executive Directors (NEDs), and shifts in age and tenure profiles.
To ensure accuracy and relevance, data were obtained from annual reports, corporate governance statements, and publicly available regulatory filings. Statistical analysis and graphical representations were used to highlight key trends and changes between 2013 and 2023.
The data collected for each individual include their date of birth, gender, nationality, corporate role(s), and mandate terms. This information was obtained from annual reports, governance reports, the Comissão do Mercado de Valores Mobiliários (CMVM) website, and corporate websites.
For the years 2013 and 2023, data were gathered from 370 and 364 board members, respectively.
Of the 370 board members analysed for 2013, 132 were Executive Directors and 238 were NEDs. In comparison, for 2023, 122 were Executive Directors and 242 were NEDs.
You can download the study below.
