The latest progress report form the Cranfield School of Management shows the number of women on the boards of UK listed companies has reached its highest level since monitoring began and demonstrates 'real grounds for optimism' according to Lord Davies, who has recommended a 25% target by 2015.
The update shows that women now account for 19% of FTSE 100 and 15% of FTSE 250 board positions. Cranfield's research indicates that in the last six months 27% of FTSE 100 and 30% of FTSE 250 new appointments went to women.
Professor Susan Vinnicombe, director of the Cranfield International Centre for Women Leaders and a co-author of the report said: ' We have seen progressive steps taken by many stakeholders to increase the level of female talent at the most senior levels of the UK's top companies and we are starting to see a shift in perceptions from chairmen and chief executives. I am confident that with renewed effort over the next two years we should reach the target.'
The report also looks at the progress FTSE 350 companies are making in adopting the new recommendations in the Corporate Governance Code 2012, which requires them to publish by the end of their current financial years information on how they plan to implement their boardroom diversity policy.
Nearly all (94%) FTSE 100 companies now acknowledge the need for greater boardroom diversity and two-thirds (65%) state a clear policy to achieve this. However, less than half (42%) opted to disclose measurable objectives to increase the number of women on their board and only a quarter (27%) address diversity in their board evaluation process. The Cranfield research shows that overall there is little change in diversity reporting by the FTSE 100 companies, compared with early adopters of the Code reported on last year.
In comparison, FTSE 250 companies are doing less well. While 82% of Cranfield's sample recognised the need for greater boardroom diversity, only 18% state a clear policy and just 14% have set measurable objectives, although almost a quarter (24%) do address diversity in their board evaluation process.
Maria Miller, Minister for Women and Equalities, said the research highlighted 'unprecedented progress', but added that 'FTSE 250 firms need to ensure that they are producing and publishing policies on boardroom diversity. I want firms to redouble their efforts on both fronts to ensure we are enabling women to fully contribute their talent.'
The Financial Reporting Council (FRC) co-sponsors the report with the Government Equalities Office. Melanie McLaren, FRC executive director, codes and standards, said: 'The FRC is pleased to see in the report an upward trend in the rate at which female directors are being appointed and hopes to see similar progress in the quality of reporting by next year. All companies should be capable of describing clearly and succinctly what they do, and there are many good examples of reporting by FTSE 250 companies highlighted in the report.'
