Boards of Directors in Swiss SMEs: Stable, small and not very diverse
A new study by the University of Zurich sheds light on the composition of boards of directors in Swiss SMEs. It shows that Diversity remains a challenge, while stability and homogeneity dominate.
The study, written by Angelo Antonio Di Feo at the University of Zurich, is the first to provide detailed insights into the appointment practices of boards of directors in Swiss SMEs. Based on the analysis of over twenty-eight thousand companies, the study examines key characteristics such as board size, the distribution of gender and nationality, terms of office and the prevalence of CEO duality.
Key points of the results
The results show that boards of directors in Swiss SMEs are often small and homogeneous. Ninety percent of SMEs have boards of directors with a maximum of four members, with small companies in particular often relying on one or two people. On average, women make up only twenty percent of board members, with large differences depending on the sector. For example, the proportion of women in IT sectors is just nine point three percent, while social services have the highest figure at twenty-nine point two percent. International diversity is also limited: The proportion of foreign board members is ten percent across Switzerland, but reaches twenty-one point four percent in border regions such as Ticino. At the same time, boards of directors remain stable: the average term of office is eight to the power of three years, which indicates continuity and many years of experience. Another special feature is the widespread CEO duality. In fifty-seven percent of SMEs, one person combines the roles of CEO and Chairman of the Board, which simplifies decision-making but also harbors risks.
Diversity as the key to the future
Angelo Antonio Di Feo explains: "Our analysis shows that the boards of directors of Swiss SMEs are significantly more homogeneous and smaller than those of listed companies. This raises the question of whether targeted measures to promote diversity could not only strengthen governance, but also promote the long-term success of SMEs. "The study illustrates how regional and sectoral differences shape the composition. For example, the proportion of women in social services is twenty-nine point two percent, but only nine point three percent in the IT sector. In comparison to listed companies, which have an average proportion of women of thirty-five percent, the need for action is clear.
About the study
The work was carried out under the supervision of Dr. Christoph Wenk Bernasconi at the University of Zurich and was initiated by Tobias Herren, Petra Gössi, Raoul Stöhlker and Dominic Lüthi. The comprehensive data analysis represents a milestone in corporate governance research and provides a basis for targeted improvement measures in SMEs.
