The government’s target of 50% parity at boards is unlikely to be achieved by the target of the end of 2025.

While the FTSE 100 has some of the best gender balance across European listed companies, progress in the wider FTSE 350 is stalling, with minimal percentages improvements, and only 35% of women in leadership roles across the sector, mirroring the largest 50 privately owned companies.

The UK has more women in leadership roles than many countries with 60% of FTSE 350 companies near the 40% target, progress has slowed.

The annual FTSE Women Leaders review showed that women held 43% of board director roles at listed companies, filling 1,275 positions in 2024, although this figure included a high proportion of non-executive directors.

But when the figures are broken down there were only 35% of women in leadership roles, of which there are over 6,700 in the FTSE 350 alone.

And the very top jobs are still dominated by men with only a handful of women CEOs in the FTSE 100, a figure which has dropped into single figures since 2022.

The likelihood of reaching the 50% target of board balance is unlikely to be achieved by the end of 2025, the target set when the review started 15 years ago. The worst performers in the FTSE 350 – 21 companies (6%) have not even achieved 33% representation of women on boards.

While there has been immense progress since the feeble 9.5% representation in 2011, it is not enough.

While women constitute 36% of direct reports and 29% of executive committee members in the FTSE 350, progress is limited as the appointment rate in the FTSE 350 means that six in 10 roles still go to men.

Penny James, co-chair, FTSE Women Leaders Review, said: ‘Limited progress is being made on CEOs, but the trend on finance director appointments has improved this year, and we must ensure we are also developing P&L leaders to deepen the CEO pipeline.

‘We are making progress on chairs, but the four key roles continue to be dominated by senior independent directors. We will need to monitor over time if this develops into a rich chair succession pipeline.

‘We have made progress, but there is more to do. With one year of this cycle remaining, we call on boards to continue to challenge themselves on the balance in their leadership teams where we must improve momentum to achieve our target.’

And there are signs that progress is stalling, with the government warning that it is unlikely to achieve its target of 50% of women on FTSE 350 boards as the share of women hires has ‘slowed’.

As the first woman chancellor, Rachel Reeves has broken a glass ceiling which stood for centuries. At a reception to launch the annual review, she said: ‘The UK is leading the charge for gender equality in boardrooms, but we cannot rest on our laurels. 

‘We must break down the barriers that stop many women being represented in decision-making roles, so that top talent reaches the highest levels of leadership in businesses driving economic growth across Britain.’

There is concern about how to drive up representation by women at senior levels.

Baroness Gustafsson OBE, co-founder of global cybersecurity giant Darktrace and also a chartered accountant and minister for investment, said: ‘I know from founding my own business how strong female voices inspire positive change throughout an organisation, bringing new ideas and adding greater value.

‘Whilst the momentum is with us, we have so much further to go. Working with business leaders and investors, we will do everything we can to unlock more opportunities for women at the highest levels as we go for growth and deliver our Plan for Change. 

On a more positive note, the UK is second on a list of G7 countries compared by the metric of main stock exchange, so equivalent to FTSE 100, in terms of percentage of women on boards, and there are quotas in France and Germany.

The UK had 43.4% of women on boards, up from 42.1% last year, trailing top performer France with 45.4%, up from 44.7% in 2023. Third slot went to Canada at 39.1%, pretty static on the previous year, and in fourth spot, Germany at 36%, up 2%. The US was fifth with 34.6% based on the S&P, while Japan trailed with only 19.5% of women on boards. Italy is not included as it does not collect comparable data.

Sir Robin Budenberg, chair of Lloyds Banking Group, and co-sponsor of the review, said: ‘This year, we have reached an important milestone, achieving gender balance on our board, with 50% women and 50% men.

‘Women represent 45.7% of our leadership (executive committee and direct reports combined) which, whilst this still exceeds the FTSE Women Leaders 40% recommendation, is a slight reduction on last year. A reminder that progress is never guaranteed, and we must remain focused on sustaining momentum.

‘We have a gender-balanced board and over 45% representation of women at leadership level but we recognise that progress is neither linear nor inevitable. The responsibility lies with all of us to lead inclusively and to keep gender equality at the top of the agenda. By doing so, we strengthen our businesses and help build a more dynamic, successful economy.’

Big Four firm KPMG is also a co-sponsor of the report and is working towards achieving even the FTSE 350 average of 35% women leadership. It currently has 28% women partners across the firm, equivalent to directors in listed and private companies, and has 40% women on the leadership executive.

Bina Mehta, chair at KPMG, said: ‘I am proud that our firm continues to grow the number of women in leadership roles. As a firm we recognise the importance of creating an environment where everyone can succeed and thrive.’ 

FTSE Women Leaders Review, Achieving Gender Balance 2025