Corporate governance
Women on boards March 2012
FTSE 100 boards. 84.4% men. 15.6% women.
Women on Boards | 1
Contents
Foreword
2
Executive summary
3
Recommendation 1
5
Recommendation 2
6
Recommendation 3
7
Recommendation 4
8
Recommendation 5
9
Recommendation 6
9
Recommendation 7
11
Recommendation 8
12
Recommendation 9
12
Recommendation 10
13
Conclusion
14
FTSE 350 Board Targets
15
2 | Women on Boards
Foreword
Over the last year we have seen an unprecedented pace of change in the boardrooms of UK plc. We have seen a growing recognition of the importance of including more women in decision-making roles and of the benefits gained by society, the economy and business in doing so.
In my report last year I set out a roadmap for business to achieve 25% female representation on boards by 2015. Of course, in a world where females outnumber men in terms of population and exceed them in terms of education, 25% is not parity, but 25% is a good place to start.
This is not a figure plucked from the air. It was arrived at following close analysis of board trends over recent years: we recognised that
FTSE 250 companies would, in many cases, find it more difficult to achieve than those in the FTSE 100 and explicitly stated that for our top companies 25% should be seen as a minimum goal.
In the three years prior to my report the number of women on boards had effectively plateaued, stalling at less than a single percentagepoint rise year-on-year. Over the past year, however, we have seen the biggest-ever reported increase in the percentage of women on boards.
Cranfield School of Management’s Female FTSE report, published in parallel to this report, notes that should we maintain this momentum we would see a record 26.7% female board representation by 2015. This is great news, and demonstrates how a voluntary business-led approach can work.
I believe that
FTSE 100 boards. 84.4% men. 15.6% women.
Women on Boards | 1
Contents
Foreword
2
Executive summary
3
Recommendation 1
5
Recommendation 2
6
Recommendation 3
7
Recommendation 4
8
Recommendation 5
9
Recommendation 6
9
Recommendation 7
11
Recommendation 8
12
Recommendation 9
12
Recommendation 10
13
Conclusion
14
FTSE 350 Board Targets
15
2 | Women on Boards
Foreword
Over the last year we have seen an unprecedented pace of change in the boardrooms of UK plc. We have seen a growing recognition of the importance of including more women in decision-making roles and of the benefits gained by society, the economy and business in doing so.
In my report last year I set out a roadmap for business to achieve 25% female representation on boards by 2015. Of course, in a world where females outnumber men in terms of population and exceed them in terms of education, 25% is not parity, but 25% is a good place to start.
This is not a figure plucked from the air. It was arrived at following close analysis of board trends over recent years: we recognised that
FTSE 250 companies would, in many cases, find it more difficult to achieve than those in the FTSE 100 and explicitly stated that for our top companies 25% should be seen as a minimum goal.
In the three years prior to my report the number of women on boards had effectively plateaued, stalling at less than a single percentagepoint rise year-on-year. Over the past year, however, we have seen the biggest-ever reported increase in the percentage of women on boards.
Cranfield School of Management’s Female FTSE report, published in parallel to this report, notes that should we maintain this momentum we would see a record 26.7% female board representation by 2015. This is great news, and demonstrates how a voluntary business-led approach can work.
I believe that