Today, the UK Government has called for all FTSE 350 companies to meet the 33% target of women on boards by the end of December 2020. Although women now comprise more than a third of all board members across the FTSE 350, the latest data shows that 41% have still not reached the set target. Business Secretary Alok Sharma is calling for all companies to take action to reach the target before the end of the year.
While many firms have met the government-backed Hampton-Alexander Review’s 33% target, some are still failing to make the mark. Worryingly, the data reveals that 18 FTSE 250 boards remain ‘one and done’ boards, where companies appoint a single woman board member and go no further. There is also still one all-male board – this figure is down from 152 all-male boards back in 2011.
“While I am pleased that the FTSE 350 as a whole has finally hit this historic landmark, more than 100 of the UK’s top companies have failed to meet the target,” stated Sharma. “Research shows that diverse leadership teams are more innovative and make better decisions. As the UK economy continues to recover from coronavirus, increasing representation of women on boards represents a golden opportunity not only to rebuild, but build back better.”
RALLYING CRY FOR ACTION
The deadline for companies to meet the 33% gender diversity target for board and senior leadership teams is fast approaching. Although good progress is being made, with many firms recently appointing more women to boards and senior leadership teams, “some laggards remain”, noted the Investment Association’s CEO Chris Cummings. “On behalf of investors, I want to send a rallying cry to those companies that now is the time to take action and demonstrate real change. Diversity results in better decision-making and plays an essential role in a company’s long-term success and investors expect companies, at a minimum, to meet the target set.”
Nevertheless, despite the challenges faced by businesses during the pandemic, the number of women on boards has risen by 3.8% in the last year. “Recognising the significant impact of the global COVID-19 pandemic on all business activities, it’s encouraging to see the number of women at the top of British business continue to increase,” commented Denise Wilson OBE, Chief Executive of the Hampton Alexander Review. “This confirms the UK’s business-led voluntary approach is working. The benefits of diversity are being recognised, with business seeking more than ever those with fresh energy, new ideas and diverse perspectives.”
Sir Phillip Hampton, Chair of the Hampton-Alexander Review, praised those companies that have already met, or exceeded, the target. The progress over the last decade is down to the “collective and inclusive efforts of all our stakeholders”, he noted.
However, last November, Hampton clearly pointed out that unless “half of all appointments made this year go to women, the 2020 target is not going to be met” (as reported).
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