The representation of black people in general, and black women in particular, in executive positions in companies listed on the JSE remains low, Business Unity South Africa (Busa) said on Tuesday.

An independent study showed that the percentages of black exective directors, CEOs and CFOs were under 10%, compared with a target of 50% by 2017.

The overall percentage of black people at board level was 25.3%, which means that there is a shortfall of 533 black board members of whom 419 should be black females.

Blacks account for 9.5% of executive director positions, which means that there is a shortfall of 322 black executive directors. There is also a shortfall of 145 black nonexecutive directors, as only 27.6% of nonexecutive positions are currently filled by blacks.

The percentage of black independent nonexecutive directors was 38.1% compared with a target of 40% - indicating that this target has been met, Busa said.

Black chairpersons account for 22% for all JSE companies, while black CEOs account for 6.9% and black CFOs for 7.9% − the target for each is 50%.

The percentage of black female directors was at 10.2%, black female CEOs 1.2% and black female chairpersons 3.9%.

White males accounted for the majority of senior positions on the JSE: 52% of all board positions, 72% of executive directors, 51% of chairpersons, 76% of CEOs and 76% of CFOs.

Busa said that retirements would not create sufficient vacancies to close the identified shortfalls for black people in executive positions.

“It is unlikely that the problem is only related to a lack of skills within the black community because the shortfall of executive directors is only 332. On the supply side, there are more than 5 500 black chartered accountants in the country,” it stated.

The study looked at two samples – the whole of the JSE and the top 40 JSE companies. It found that tranformation for the whole of the JSE has improved, but the top 40 companies have seen a regression in transformation since 2009.

There has been a 6.7% increase in black representation and 14.6% increase in black female representation on the boards of all JSE companies between 2009 and 2011, while white and foreign directors decreased by 4.9%.

However, for the top 40 JSE-listed companies, there was an opposite trend.

In fact, there was a decline of 10.1% in the number of black directors and 2.4% of white directors on the boards of top 40 JSE companies. “On the face of it, this implies that transformation regressed among the top 40 JSE companies and improved for the whole JSE,” Busa said.

An analysis of the findings, Busa believed, showed that JSE companies have disappointingly taken the path of least resistance, appointing black people to nonexecutive rather than executive positions.

Busa described the current pace of transformation as inadequate. “With only six years left before the targets must be met, time is running out for companies to take proactive steps to shape their representation for the future. We urge them to do so,” it said.

The study suggested many recommendations including the Department of Trade and Industry developing the capacity to monitor the implementation of transformation at all levels on an ongoing basis, and the creation of a structure and reporting mechanism similar to the annual state of transformation report produced by the Commission for Employment Equity.

The study also called for government, companies and Busa to play a role in ensuring that South Africa meets its transformation objectives.

Busa is currently seeking to mend schisms, which were brought into the public domain during July when the Black Management Forum withdrew, citing its frustration over a lack of transformation within the organization.