C-suite mentor warns Maltese listed companies face gap ahead of gender board diversity deadline

Ahead of the 30th June deadline for the EU Women on Boards Directive, international business mentor and C-suite strategist Nadia Pace has flagged governance gaps facing Malta’s business community.

The EU directive requires 40 per cent of non-executive director positions or 33 per cent of all director positions at large listed EU companies to be held by women. 

Ms Pace said that for Malta’s listed companies, this deadline presents both a compliance requirement and an opportunity to strengthen board effectiveness.

She referred to the Malta Chamber’s 2024 Family Business Survey, which found that only 67 per cent of local businesses have functioning boards, down from 83 per cent in 2022. 

Just 31% have independent non-executive directors, while only 36 per cent have a written succession plan and 32% have a written strategic plan.

Board effectiveness is also a global concern, with only 35 per cent of executives rating their board’s performance as excellent or good, while 93 per cent want at least one director replaced – the highest level ever recorded in an annual survey conducted by PwC’s annual survey.

“June 2026 is an opportunity for Malta’s listed companies to think seriously about board composition and effectiveness,” Ms Pace said.

“The best boards bring together complementary skills and perspectives. That’s what drives better decision-making.”

Ms Pace believes non-executive directors (NED) play a critical role in addressing these gaps – offering independent oversight, challenging strategic assumptions, and bringing sector expertise that executive teams may lack. 

She said that finding directors with the right mix of governance experience and industry knowledge will be key for listed companies facing the 2026 deadline.

“A good NED isn’t there to rubber-stamp decisions,” said Ms Pace. “They’re there to ask the questions that don’t get asked internally, and to bring experience from other sectors and markets that can open up new thinking.”