FTSE firms achieve ‘dramatic’ 50% rise of women on boards

More than a third (34.3%) of FTSE 350 board positions are now held by women, representing a 50% increase over the last five years, confirmed new data released today.

The number of women on FTSE 350 boards has risen ‘dramatically’ from 682 to 1026 in five years, according to the latest Hampton-Alexander Review. Additionally, all FTSE 100, 250 and 350 reached the target of women making up 33% of boards by the end of 2020; highlighting the success of the Government’s voluntary, business-led approach. And there are no longer any all-male boards in the FTSE 350.

This represents a dramatic shift in representation at the very highest levels of British business, confirmed the government-backed Hampton-Alexander Review; which was launched in 2016 to encourage UK-listed companies to appoint more women to their boards and into senior leadership positions. 

While men still dominate in the upper ranks of the UK’s top firms, in five years the review has seen remarkable progress among FTSE companies. In total, 220 of the FTSE 350 companies now meet the Hampton-Alexander target of having at least 33% of their board positions held by women; with the figure having quadrupled from just 53 in 2015. 

‘EXCELLENT’ PROGRESS 

The figures also reveal an increase in women in wider senior leadership roles. This demonstrates that Hampton-Alexander’s top-down approach – with boardrooms setting the standards for women’s representation across the company – is providing pathways to success for women; and ultimately supporting British business to strengthen leadership with new ideas and diverse perspectives that come from more women in senior positions. 

The FTSE 250 reached the Hampton-Alexander Review’s final target of women making up 33% of boards in December 2020. The FTSE 100 and FTSE 350 achieved their milestone in February and September 2020, respectively. “There’s been excellent progress for women leaders in business over the last 10 years or more; with boards and shareholders determined to see change,” stated Hampton-Alexander Review Chair, Sir Philip Hampton. “The progress has been strongest with non-executive positions on boards. But the coming years should see many more women taking top executive roles. That’s what is needed to sustain the changes made.” 

BLUE PRINT FOR SUCCESS

Business Secretary Kwasi Kwarteng agrees, but warns against complacency. “FTSE companies have made incredible progress in recent years. But we cannot become complacent in building a society where everyone has an opportunity to get on and succeed,” remarked Kwarteng. “As we look to build back better from the pandemic, it’s important businesses keep challenging themselves to use all the talents of our workforce and open up the top ranks for more, highly-accomplished women. The UK Government’s voluntary, business-led approach to increasing women’s boardroom representation has been hugely successful and will, I hope, serve as a blueprint for countries across the world looking to make business more reflective of society.” 

The number of ‘One & Done’ boards – with only one woman – has also fallen from 116 in 2015 to just 16. Moving forward, all businesses should be pushing themselves to move beyond tokenism; and ensure even more women are getting into the highest ranks, noted the report. FTSE companies have continued to improve women’s membership of boards since Hampton-Alexander figures were last made public in September; that’s despite the impact of coronavirus, which research suggests has hit women’s employment particularly hard. While women make up more than a third of those in senior leadership positions, the review found that significant progress remains to be made on the highest executive roles, such as CEO. The Hampton-Alexander Review will reflect on these findings in order to chart a way forward. 

FULL SUPPLY OF CAPABLE WOMEN

“The lack of women in the boardroom is where it all started a decade ago, and it’s the area where we have seen the greatest progress,” pointed out Denise Wilson, CEO of the Hampton-Alexander Review. “But now, we need to achieve the same – if not more – gains for women in leadership. The supply of capable, experienced women is full-to-over-flowing. It is now for business to fully-utilise a talent pool of educated, experienced women, to their own benefit and that of the UK economy.” 

“It’s hard to believe that as recently as 2011, 43% of the FTSE 350 still had all-male boards,” added Mary O’Connor, Acting Senior Partner at KPMG UK. “Thankfully the representation of women on boards and in leadership positions has significantly improved in recent years, with this review having played a critical role in realising that. Achieving the review’s 33% target at boardroom level marks great progress, but it’s vital we have a strong pipeline of female talent rising the ranks. While women now make up nearly a third of wider senior leadership roles, structural and cultural barriers still exist for women, as well as other underrepresented groups. Our collective efforts to truly eradicate those barriers and create an inclusive leadership culture doesn’t stop here, this is where it intensifies.” 

CRUCIAL GENDER EQUALITY

The Minister for Women, Baroness Berridge also believes getting women into senior positions is “vital for a company’s success”, and wants to see more of it as part of the UK’s Covid-19 recovery. “It also makes good business sense, with companies in the top 25% for gender diversity on their executive teams also 25% more likely to have above-average profitability,” she added.

Fiona Cannon, Group Sustainable Business Director of Lloyds Banking Group and the Hampton-Alexander Review Steering Group, described the results as “hugely encouraging”. “I hope that the momentum created will continue at what is a crucial inflexion point for gender equality,” she concluded.

The US has seen similar positive progress for women on boards. Click here to read more.