The government is challenging FTSE 350 companies to increase the number of women in their boardrooms by adopting three targeted initiatives this year in order to meet the deadline for 25% representation by 2015.
Business Secretary Vince Cable and Lord Davies have jointly written to the chairs of the FTSE 350 asking them to aim to appoint one additional female director in the year ahead; consider giving two female candidates from senior management the opportunity to serve as a non-executive director at another company; and state clear targets for the number of women at senior management and board level and what steps they are taking to achieve those targets.
Cable said: 'In the past few years we've made great progress in improving boardroom diversity and the momentum has turned. But the time for talking and listening is over - we now need to start seeing businesses acting on their words.'
Figures from Professional Boards Forums' BoardWatch published this month show that female representation on FTSE 250 boards has increased to 15.1%, up from 14.9% as of October 2013 and 7.8% percent as of February 2011. Almost a third (31%) of all board appointments to FTSE 250 companies since March 2013 have been women, but meeting the target set by Lord Davies in his 2011 report requires 197 more board seats on FTSE 250 companies to be held by women. This figure has reduced from 202 as of October 2013.
In comparison, women now make up 20.4% per-cent of FTSE 100 directors, up from 19% as of October 2013 and 12.5% in February 2011. Over a quarter (27%) of all board appointments since 1 March 2013 have been women, and to meet the target set by Lord Davies, 51 more board seats on FTSE 100 companies are required to be held by women.
The number of all-male boards in the FTSE 100 has fallen from six in October 2013 to two in January 2014, and the number of all-male boards for FTSE 250 companies has decreased from 51 in October 2013 to 50 in January 2014.
Research by KPMG and King's College London looking specifically at the role of the CEO in driving change on diversity and inclusion suggests that the kinds of behavioural change needed, to increase the number of women at senior levels, requires CEOs who are prepared to do more than simply sign up to good practice.
The study found that many CEOs downplay their personal motivations for diversity, talking instead about commercial and business benefits. In practice the research indicated the most effective way for CEOs to encourage change is to 'talk from the heart as well as from the head' about why greater gender diversity at the top of organisations is good for business.
Simon Collins, UK chairman of KPMG, said: 'I'm absolutely convinced by the business case for diversity but this research shows that discussing gender diversity in commercial or "change management" terms is not enough. CEOs need to talk about the issue from a personal perspective and authentically to win hearts and minds.'
