Australia must encourage diverse executives

Australia's Productivity Commission must encourage companies to recruit candidates for board-level positions from wider demographics.

That is according to Paul Quinn, head of the law firm Allens Arthur Robinson's corporate department, who suggested that recommendations made by the Australian government's advisory board to improve executive diversity do not go far enough.

The Productivity Commission has recently suggested that Kevin Rudd's ruling administration remove the non vacancy rule, which prohibits the board setting a cap on the number of directors.

However, speaking to the Business Spectator, Mr Quinn claimed that this plan will not improve the proportion of women and ethnic minorities on boards as the available pool of executives from different backgrounds is diminishing.

The practice director of the international law firm's Melbourne office instead called for a long-term plan that removes obstacles and encourages corporations to hire first-time directors.

He told the website: "This plan should include encouraging nomination committees and recruitment agencies to think beyond the square when putting up candidates for directorships."

The value that diversity brings to boardrooms was highlighted earlier this year by Roger Carr, chairman of Centrica, who claimed that women socially and intellectually "enrich" companies.