Despite progress in female representation on non-executive board positions, there remains a lack of women in executive roles on the boards of the UK’s leading companies, according to the latest report from Cranfield School of Management
The Female FTSE Board report shows that while the percentage of female non-executive directors in the FTSE 100 is at an all-time high of 35.4%, female executive positions have flat-lined for a fourth consecutive year at 9.7%.
Despite this, the percentage of women on boards has increased from 27.7% in October 2017 to 29% in June 2018, meaning it may be possible to reach the target set by the Hampton-Alexander Review of 33% by the end of 2020.
However, in the FTSE 250, the number of female executive directorships dropped from 38 to 30 between October 2017 and June 2018. There has also only been a marginal increase in the number of women on boards, from 22.8% in October 2017 to 23.7% in June 2018. The report labels this ‘disappointing’, saying it should be easier to achieve progress at the FTSE 250 level than at the FTSE 100 level.
The report stated: ‘There are only five women holding CEO positions and 19 holding CFO/FD positions. If we see FTSE 250 as the pipeline for FTSE 100 then this picture is not encouraging. It is imperative that FTSE 250 companies examine their female talent pipeline, identify the challenges and commit to improving this woeful situation.’
Sue Vinnicombe, professor of women and leadership at Cranfield School of Management, said: ‘Now, more than ever, is the time for disruptive change. We need to think big and act decisively in order to move the needle. FTSE 350 companies need to treat gender diversity as seriously as they treat sales, risk management and innovation, otherwise nothing will change.’
The report seeks to emphasise that gender diversity is ‘a serious business issue’, and says companies which fail to address the lack of senior female executives should be penalised.
It noted: ‘The greatest concern raised in this report is the complete lack of progress in developing the female executive pipeline hence the title “Busy going nowhere”.
‘There is no doubt that there is a tremendous amount of activity around gender diversity in many of the FTSE 350 companies – beautiful websites, great policies, innovative women’s leadership programmes and Unconscious Bias training available to all employees.
‘Yet these count for nothing unless targets are truly embedded in the organisation.’
The female FTSE board report 2018 is here.
Report by Pat Sweet
