Partner Article

Record increase in female board members

Increasing numbers of women are being appointed to decision-making roles in business, according to a Government report.

One year ago, Lord Davies of Abersoch was asked to review the economic and social benefits of encouraging women to take up senior businesses. Reflecting on his findings, Lord Davies believes that a culture of change is now taking place in relation to how women are seen within the workforce.

He commented: “Some excellent work has taken place and I want to take this opportunity to thank the many Chairmen, Chief Executive Officers, business organisations, training providers, networks, journalists and individual business men and women whose commitment to this issue remains unstinting.

“However, I must also emphasise that efforts need to be ramped up and the speed of change accelerated if we’re to avoid Government interference.”

Between 2008 and 2010, the number of female directors on boards increased by less than 1% annually, but in the 12 months since the report was published, the largest annual increase of women on boards has been recorded.

As of the end of February 2012, women account for 15.6% of all directorships within the FTSE 100 - up from 12.5%. 27% of all board appointments have been taken up by women, an increase of 14% and mow only 11 male-only boards remain.

This progress is particularly encouraging, considering the long lead times involved between a board position opening up and the confirmation of a new appointment. According to the Cranfield School of Management Female FTSE report, if the current momentum is maintained then a record 26.7% of female board representation in FTSE 100 companies would be achieved by 2015.

Secretary of State for Business, Vince Cable said: “Increasing female board representation is a win-win proposition for business. Well-balanced boards with broader experience introduce fresh perspectives and new ideas, which help improve performance and boost productivity.

“This report provides real evidence that business is taking the issue of board diversity seriously and is working to bring about the necessary changes. It demonstrates why we don’t think quotas are necessary at the moment as the UK is making the voluntary approach work.”

Within the FTSE 250, women make up 9.6% of all directorships, and for the first time ever all-male boards are in the minority.

Over the next year, Lord Davies and his panel will prioritise work towards reaching the 25% target in FTSE 350 companies, and on building a sustainable and credible supply of board-ready women through training and development initiatives.

This was posted in Bdaily's Members' News section by Ruth Mitchell .