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UK on target for female boardroom representation

Lord Davies has published his second annual report on progress made into the number of women in UK business decision-making roles.

The report shows a growing number of female board members in the UK’s top firms, and a growing understanding of the benefits for society, business and the economy.

As of 1st March 2012, women now account for 17.3% of all directorships in the FTSE 100, which is a 10.5% rise from 2010.

Women now account for 34% of all board appointments and there are 94 boards with female representation in the FTSE 100.

Within the FTSE 250, women now account for 13.2% of directorships, up 6.7%, while there are 183 boards with female representation and 26% of board appointments were women last year.

Lord Davies commented on the findings: “The onus was firmly placed on business to bring about this necessary change, and I am pleased to say that evidence clearly shows that they have, and are, stepping up and responding.

“They are making real efforts to find and appoint capable women to their boards. We are now moving to a place where it is unacceptable for the voice of women to be absent from the boardroom.

“This has never been a hard sell. Companies see that having more women at their top table makes good business sense, especially if we are operating in a global market. We’ve come a long way over the last two years but we must not get complacent and take the foot off the gas.

“This has always been a business-led approach with the support of Government. If we are to fend off the prospect of quotas and regulation then business cannot rest on their laurels and think the job is done.”

Business Secretary Vince Cable said: “The argument for more women in our boardrooms is clear - they bring fresh perspectives and ideas, talent and broader experience which leads to better decision-making. This is not just about equality at the top of our companies. It is about good business sense.

“Some progress has been made in the last three years. Today 94 of the FTSE 100 companies count women on their boards as do over two thirds of all FTSE 350 companies.

“However, the momentum appears to be slowing and there has been much less progress in executive appointments at the top.

“Government continues to believe that a voluntary led approach is the best way forward. But today’s report also serves as a timely reminder to business that quotas are still a real possibility if we do not meet the 25% target of women on boards of FTSE 100 companies by 2015.”

The Cranfield School of Management also released its Female FTSE Report on Wednesday, noting that Government progress on the female board representation has stalled over the past six months.

However the school also recognised the UK is still on track to deliver Lord Davies’ recommendations in his intial report in 2010.

CBI president, Sir Roger Carr, commented on the Cranfield report: “Greater diversity improves atmospherics, dynamics and decision-making in British boardrooms. Businesses can only secure the best available individuals if they look at the widest pool of candidates.

“These figures show if we are to remove blockages in the pipeline of female talent development, business leaders must roll up their sleeves and redouble their efforts to improve recruitment, mentoring and succession planning.

“Tokenistic EU quotas will do nothing to address the root causes of this issue. It is critical we nurture a diverse talent base right from the bottom to the top of our companies to hone our competitive edge.”

Minister for Women and Equalities Maria Miller said: “It is more important than ever that we make the most of the talents and skills that women have to offer if we’re going maximise Britain’s prospects for economic growth.

“We are making good progress; two thirds of women are in work, the gender pay gap is closing and both Lord Davies’ and Cranfield’s reports indicate that we are heading in the right direction when it comes to women’s representation at senior levels.

“But there is much more work to do. The priority now is to maintain that momentum, not only within listed companies but across the economy as a whole.

“Our equalities agenda isn’t solely about women in the boardroom. It’s also about unlocking the untapped potential of women at all levels in the workforce, getting more women into work, priming the talent pipeline and bringing sustained benefit to the British economy in the longer term.”

Dr Cable wrote to the remaining all-male FTSE 100 boards in January to ask what steps would be taken to improve female representation across the top of their companies.

On Wednesday he wrote to all FTSE 250 businesses to ask them same question, alongside reports the UK is on track to meet Lord Davies’ target to have 25% female boards in the FTSE 100 by 2015.

This was posted in Bdaily's Members' News section by Miranda Dobson .