Achieving Gender Balance - Women on Boards

The FTSE Women Leaders Review 2022 saw the United Kingdom rank in second place internationally for its representation of women on FTSE 350 boards and their leadership teams. The FTSE 100 saw a rise in the representation of women by 2.1% from the beginning of 2021, to 39.1% and an increase was also achieved in the FTSE 250, with the proportion of women in the boardroom now at 36.8%.

However, whilst the representation of women continues to climb in the most senior board roles, the same cannot be said for CEO, Financial Director, Chair and Senior Independent Non-executive director roles where female representation is still particularly low.

The report sets out key targets to remedy the gender balance, comprising of:

• Boards and leadership teams of FTSE 350 companies should aim for a minimum target of 40% for women’s representation by the end of 2025, with a balance of both men and women at or above a minimum of 40% to be achieved over time
• All companies should seek to eliminate bias from selection processes in relation to both board and leadership appointments - with FTSE 350 companies to have at least 1 woman appointed as Chair or Senior Independent Director role on the board and in the CEO or Financial Director role by the end of 2025
• Stakeholders such as the investment community and corporate governance agencies should continue to provide guidance and seek to encourage any FTSE 350 board that has not yet achieved their 33% representation target set in 2020, to work to do so. Additionally, FTSE 350 boards with a representation of women below 33% should consider the underrepresented gender when considering further appointments
• The targets to be extended beyond the FTSE 350 companies, to the largest 50 private companies in the UK, to encourage progress across a wider spectrum of British businesses.

The report reminds us that there is certainly work to be done in this area by employers in terms of addressing and challenging behaviours, changing mindsets and also creating inclusive cultures.

As the report suggests, in order to truly make a change and progress, companies must be prepared to rise to the challenge by reviewing and auditing their own diversity performance and statistics.

Whilst the FTSE Women Leaders Review’s recommendations are welcomed, it remains to be seen the speed at which organisations implement the recommendations contained within it, if at all.