Women now hold 43% of board roles and 35% of leadership positions across FTSE 350 companies without the need for quotas, marking a significant milestone in corporate diversity, according to the latest FTSE Women Leaders Review 2025, published ahead of International Women’s Day.
This year’s report, backed by the UK government and industry giants Lloyds Banking Group and KPMG LLP, confirms that British companies have exceeded the 40% women’s representation target – a goal set for the end of this year. The results reflect a growing commitment to breaking barriers and fostering inclusive leadership in some of the UK’s most innovative firms.
The surge in women leaders isn’t just a box-ticking exercise; it’s part of a broader movement reshaping British business. The government’s Plan for Change aims to ensure that women have fair access to stable, well-paying jobs, a strategy designed to drive both economic growth and social progress.
GLOBAL MODEL FOR GENDER EQUITY WITHOUT QUOTAS
The UK now ranks second only to France among G7 nations for female board representation, boasting 43.4% women on company boards compared to France’s 45.4%. Unlike many countries that rely on quotas, the UK’s progress has been entirely voluntary, proving that private-sector leadership – rather than government mandates – can drive transformative change.
This shift isn’t just about fairness, it’s about performance. Companies with diverse leadership consistently outperform their peers, and this progress is trickling down to small and mid-sized businesses looking to replicate the success of their FTSE 350 counterparts.
Chancellor of the Exchequer Rachel Reeves applauded the achievement but emphasized the need for continued action. “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 prevent women from reaching the highest levels of leadership in the businesses driving Britain’s economic future,” stated Reeves.
IMPORTANCE OF GENDER-BALANCED BOARDS
Minister for Investment Baroness Gustafsson OBE, a former entrepreneur, added: “Strong female voices inspire positive change, bring fresh ideas, and add value at every level of business. Today’s report shows incredible momentum, but we must push further to unlock even more opportunities for women at the top.”
Sir Robin Budenberg, Chair of Lloyds Banking Group, also emphasised the business benefits of gender balanced boards. “A diverse workforce strengthens businesses and fuels long-term success. At Lloyds Banking Group, with a gender-balanced board and 45% of leadership roles held by women, we know progress isn’t automatic. It’s on all of us to keep gender equality a priority, ensuring businesses reflect the society they serve.”
Bina Mehta, Chair of KPMG LLP, added: “The UK’s progress in gender balance reflects years of collective effort. It’s encouraging to see private companies keeping pace with FTSE 100 firms, with 35% of Executive Committee roles now held by women. If businesses continue working together, we can drive sustainable, long-term growth.”
WOMEN IN LEADERSHIP
While gender balance at the board level has been achieved, the next challenge is ensuring women hold more executive roles. The government’s upcoming Employment Rights Bill and Plan to Make Work Pay will further strengthen protections for women in the workplace, including safeguards for pregnant employees and those experiencing menopause.
Vivienne Artz, CEO of the FTSE Women Leaders Review, emphasized the need for continued commitment. “British businesses are setting an international standard for balanced, inclusive leadership in an increasingly complex world. We’ve proven that voluntary action works, but sustained effort is needed to reach 40% women in leadership by year’s end,” stated Artz.
Co-Chairs of the Review, Penny James and Nimesh Patel, shared her sentiment, calling on UK businesses to stay focused: “UK businesses have led the charge through voluntary action rather than quotas. But to reach true gender parity in leadership, companies must step up their commitment to diversity. The goal is clear: a business landscape that offers opportunity for all.”
As British businesses continue to redefine leadership, it’s not just reshaping boardroom but setting the global gold standard for gender equality in corporate governance. Check out the latest report here.
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