V
ivienne Artz OBE, CEO of FTSE Women Leaders Review, presented the latest findings on women on boards and in leadership at a recent Westminster Employment Forum
event on Next Steps for Women in the Workplace. The FTSE Women Leaders Review was set up in
2011 by Lord Davies. At the time, 9.5% of the FTSE 350 boards (the largest public companies in the UK) comprised women. When the Review was set up, it set a target to increase the proportion of women with board representation in FTSE 350 companies to 25% in the space of five years. The target was met. When the Review renewed itself and became the Hampton-Alexander Review, a target of 33% was set over a five year period. One-third representation was considered as important because this represents a critical mass of women, who could have an impact in a very different way from previous token representation. Again, this target was achieved.
THE FTSE WOMEN LEADERS REVIEW The latest edition of the FTSE Women Leaders Review has set a target of 40% female representation on the boards of the FTSE 350 by the end of 2025. The scope of the Review has also been broadened, to not only include women on the boards of the biggest public companies in the UK, but also to address women’s representation at leadership level in the 50 largest private companies headquartered in the UK. It has set a 40% target and an end of 2025 timescale for women’s representation achieving at least one of the four key decision-making roles: chair, CEO, senior independent director, and finance director. The FTSE Women Leaders Review published its
2025 report in February*. The report shows where women currently stand in terms of board membership and leadership in the FTSE 350 and the 50 largest private companies. It also finds that the number of women on boards and in leadership continues to increase. Over 60% of the FTSE 350 companies are achieving,
or close to achieving, the target of 40% women’s representation by the end of 2025. The progress being made by the 50 largest companies is keeping pace with the very largest public companies: with 37% women in leadership, the statistics align with those for the FTSE 100.
WOMEN ON BOARDS Turning to the statistics for board representation, women comprise 43% in the FTSE 350 and 31% in the 50 largest private companies. However, this data needs to be broken down to understand women’s participation as executive directors and non-executive directors. In the FTSE 350, women comprise 16% of executive directors and 50% of non-executive directors. In the 50 largest private companies, the figures are 29% and 33% respectively. The large increase that has taken place over the years in the population of women in non-executive roles is
to be welcomed but the gap needs to narrow between those in non-executive roles and the number of women in key executive roles. This is not only because it is the executive roles that get paid the most, so they are much more likely to close the gender pay gap, but also because these are the ones that have the most impact and influence in relation to the organisation. Of the 350 FTSE companies, the report indicates
that 73% are at or above the target for 40% female representation by the end of 2025. 21% are below 40% but above 33% and only 6% are below 33%. For the 50 largest private companies, the figures are: 34%; 12% and 54% respectively. This indicates that the private companies have a long way to go to achieve the target of women comprising 40% of board membership. With respect to comparator countries, the UK, with a
43.4% female board representation, is performing well. Women comprise 45.4% of boards in France, 39.1% in Canada, 36% in Germany, 34.6% in the US and 19.5% in Japan.
WOMEN IN LEADERSHIP The report indicates that 35% of leadership roles are held by women in the FTSE 350 companies and 37% in the 50 largest private companies. Unpicking this data, 29% of the executive committee are female, and 36% are direct reports (i.e. in the talent pipeline) in the FTSE 350. The picture is more balanced in the 50 largest private companies with the executive committee comprising 35% women, and direct reports comprising 37%. Of the 350 FTSE companies, the report reveals that
only 28% of these companies are at or above the target for 40% female representation in leadership by the end of 2025; 33% are below 40% but above 33%; and 39% are below 33%. For the 50 largest private companies, the figures are: 34%; 43% and 23% respectively. This indicates that the private companies are outperforming the FTSE 350 in terms of appointing women to leadership positions.
CALL FOR ACTION Nonetheless despite women’s progress, a call to action is still required to drive forward the 40% target for women in leadership and to increase women’s participation in the roles that form the pipeline to leadership positions. Women’s representation in the leadership roles of
chair, CEO, and finance director, in particular, needs to increase and the gap between the numbers of women in key executive roles compared to those in non-executive roles needs to narrow. Of course, this does not negate the progress made by women in non-executive positions. Despite this, action is still required to improve gender diversity, alongside the participation of minorities, in the roles played by non-executive directors, such as on remuneration committees, as highlighted in recent academic research**.
*FTSE Women Leaders Review: Achieving Gender Balance available from: ftsewomenleaders. com/latest-reports
**Shortland, S. and Perkins, S.J. (2024) ‘Diversity in remuneration committees: A view from the inside’, published in Equality, Diversity and Inclusion, Vol. 43, No. 7, pp. 1208- 1229.
71
THINK GLOBAL PEOPLE THINK GLOBAL WOMEN
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116
