Australian Board Trends 2025: A Reflection on Evolving Governance
By
Chief Board Researcher, Future Leadership
As Future Leadership marks 23 years of guiding chair and board appointments, I find myself reflecting on the evolution of board recruitment practices in Australia. Having personally led research for over 300 board roles during my 18-year tenure, I’ve witnessed a profound shift in how boards are composed, governed, and held accountable.
Our firm has long championed diversity, not just as a metric, but as a mindset. We’ve encouraged clients to lead with intention, embedding gender and cultural diversity into their governance DNA. We’ve also advocated for skills-based appointments, using matrix frameworks to identify capability gaps and build boards that are strategically aligned and future-ready.
These principles, now widely adopted, mirror the foundations of Future Leadership’s Model of Leadership and Capability Framework, which emphasise adaptive governance, strategic foresight, and inclusive leadership. It’s heartening to see that what was once considered disruptive is now standard practice.
Gender Diversity: Progress with Purpose
The latest AICD data shows continued momentum:
- Women now hold 37.5% of ASX 300 board seats, with 39.3% in ASX 100 and 38.1% in ASX 200
- 73% of ASX 300 boards have surpassed the 30% threshold for female representation
- In Victoria’s water sector, 59% of board members are women, with a mandate for 50% female appointments (an area in which we have been running Women’s Leadership Programs in partnership with the government for years)
- NSW and Queensland have set and exceeded gender targets, with Queensland boards reaching 55% female representation.
- Tasmania’s Women on Boards Strategy has lifted female participation to 48.3%.
These figures reflect a growing recognition that gender-balanced boards are not just equitable, they’re effective.
Cultural Diversity: A Call to Action
Despite gains in gender equity, cultural diversity remains a challenge. Anglo-Celtic directors now occupy 91.9% of ASX 300 board seats, up from 91.2% last year. First Nations representation is critically low, with only five directors holding seven seats.
However, there are green shoots. The First Peoples’ Assembly in Victoria is poised to become a statutory body with powers to appoint Aboriginal representatives to government boards. Replicating this model nationally could be transformative.
Skills Transparency and Accountability
The Corporate Governance (Board Accountability) Act 2025 has ushered in a new era of transparency. Boards must now publish a skills and experience matrix, allowing stakeholders to assess alignment and identify gaps.
This legislative shift echoes our Capability Framework’s emphasis on visible leadership and strategic clarity. Directors are increasingly accountable to oversee corporate culture, navigate regulatory complexity, and integrate ESG risks into strategy and reporting.
Strategic and Technical Expertise in Demand
Board appointments are becoming more targeted. We’re seeing increased demand for directors with domain expertise in:
- Cybersecurity
- AI governance
- ESG and sustainability
- Human capital and stakeholder engagement
- Marketing and digital transformation
In many cases, we’re embedding these capabilities directly into role titles, signalling a shift from generalist governance to specialist stewardship.
From generalist governance to specialist stewardship
This trend aligns with our Model of Leadership, which prioritises functional depth, adaptive capability, and strategic influence. Boards are no longer just custodians, they’re catalysts.
