meanwhile back in the office
> meanwhilebackintheoffice Management: More women needed
The Government has welcomed Lord Davies’ report “Women on Boards” which sets out a series of recommendations to increase the number of women on company boards. The report veered away from imposing quotas or legislation, as in Norway (40 percent quota). The recommendation is that businesses in FTSE 350 companies should set their own targets for increasing female representation on their boards by 2015. He suggests that the FTSE100 should challenge themselves to increase the proportion of female directors on their boards to 25 percent by 2015.
Supporting recommendations included companies disclosing information on the number of women sitting on their boards and working in their organisations, and interestingly, that headhunting firms should draw up a voluntary code of practice addressing gender diversity in relation to board level appointments to FTSE 350 companies. Business Secretary Vince Cable said in response, “The report is clear that a business-led approach is the best way to increase the number of women on company boards, and we will therefore engage with business in considering his recommendations. Likewise we encourage regulators, investors and executive search firms to take forward those recommendations that fall to them.” Home Secretary and Minister for
Women and Equality Theresa May said, “Women make up more than half of the population, but account for just 12.5 per cent of FTSE 100 directors. Lord Davies’ report is an important step forward in understanding why this is and what can be done about it, and I shall be considering his findings very carefully.” A co-author of the Davies Report is Professor Sue Vinnicombe [coincidentally Organisational Behaviour professor on my MBA course in 1979, Hello professor. Ed]. She observes that organisations were
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evidence seems to be that questions of other diversity will sort themselves out.” The planned targets are:
• FTSE 350 chairmen should set targets for women on boards in 2013 and 2015
• FTSE 100 boards should aim for minimum 25 per cent by 2015
> THE FUNDAMENTAL PROBLEM IS LACK OF WOMEN AT THE TOP
designed “by men, for men.” Perhaps that might explain the strongly male culture at these levels. Perhaps it’s also to do with top executive pay. If that were moderated, it might put less pressure on the pay-cheque recipients to burn themselves out in pursuit of often short- term results.
And if we iron out the male/female divide, what of racial diversity, or the employee representation issue which is common in continental Europe. Professor Vinnicombe says, “The fundamental problem is the lack of women at the top. Once companies have championed gender diversity, the
• Chief executives should review aims for women on executive committees Companies should disclose annually the proportion of women on boards, in top posts and in their organisations. It could be said that the Davies Report had steered a middle path in the debate. In prodding Britain’s FTSE 100 companies to double the proportion of women on boards to at least 25 per cent by 2015, Lord Davies is steering a middle way in the passionate debate between people demanding statutory quotas now, and those who reject any targets, including voluntary ones. While there was broad agreement on positive steps to widen the pool of qualified candidates, views on forcing the issue were against. “I’m now completely in favour of quotas,” said Anna Ford reportedly, the former broadcaster who sits on the board of J Sainsbury.
But the Institute of Directors opposes not only quotas but also the target- setting approach in the Davies report. Apparently, the IOD is nervous of targets and prefers training as a way to widen the pool.
One high profile female director is reported to have said she was fed up with seeing white, 55 to 65-year-old men on boards. What did she mean? That she wanted to see even older men on boards, or younger non-white men, or no men, it is not clear at all, save for as a 55-65 year old man myself, I recognise when I’m being discriminated against. Lord Davies report, “Women on Boards” and the panels recommendations can be seen here:
http://www.bis.gov.uk/ news/topstories/2011/Feb/women- on-boards.
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