FTSE 100 executive committees need more women, says government-backed review

FTSE 100 firms need to have more women in leading roles, according to a new report.

A government-backed review has recommended that by 2020, FTSE 100 businesses should have at least one-third (33%) of their executive pipeline positions filled by women.

Headed up by Sir Philip Hampton, the chair of pharmaceutical giant GlaxoSmithKline, alongside Dame Helen Alexander, chair of business-to-business events organiser UBM, the review is working to ensure talented women at the top of business are acknowledged and promoted.

The review is focusing on senior women below the company board.

Data revealed today (November 9) has shown that just 25% of those currently on the FTSE 100 executive committees are women. Although 20 of the FTSE 100 already meet the 33% recommendation, most do not – with a dozen having no women on their executive committees.

In a joint statement, Sir Philip Hampton and Dame Helen Alexander commented: “It is clear that the voluntary business-led framework to improve the number of women at the top of British business is working and it is time to extend the focus beyond the boardroom.

“We are launching the next stage in the journey where FSTE 100 companies will aim for a third of their all-important leadership roles to be occupied by women by the end of 2020.”

They continued: “We don’t underestimate the challenge the new voluntary target presents for many FTSE companies.

“However, we are encouraged by the breadth of experienced women ready and willing to step up, the significant efforts underway in many companies on this agenda and the ability of British business to work together to bring about change when it is needed.”

Discussing the issue, Business Secretary Greg Clark said that while businesses have made progress since 2010 in ensuring women who aspire to rise to the top are able to do so, there is “a lot more to do and there is no time for complacency”.

He said: “Sir Philip and Dame Helen’s review underlines the importance of an industry-led approach, building on the successes we’ve seen so far to increase the number of women in senior business positions.

“Boards and chief executives in particular must embrace the need for change and step up to the challenges set by this review to ensure everyone gets a fair shot at making it to the top.”

The review has also recommended that the Financial Reporting Council amend the UK Corporate Governance Code so that FTSE 350 firms disclose their executive committees’ gender balance, making sure there is transparency around how many senior positions are occupied by women.

All-male boards within the FTSE 350 are at an all-time low, falling from 152 in February 2011 to 11 now.