Two out of three leadership roles in the U.K. FTSE 350 companies go to men

Author Moonshot.news

Published on: 22/02/2022

Two out of three leadership roles in the U.K. FTSE 350 companies go to men, but significant progress is noticed in FTSE 100 and FTSE 250 companies, according to a new study published by FTSE Women Leaders. The U.K. is ranked third among European countries in corporate diversity, according to a recent paneuropean study by the association European Women on Boards.

This is the first year of the FTSE Women Leaders Review, which is the third and successor phase to the Hampton-Alexander and Davies Reviews. It is an independent, voluntary and business-led initiative supported by the U.K. government, aimed at increasing the representation of women on FTSE 350 Boards and in their Leadership teams.

Executive Committee & Direct Reports

The FTSE 100 has made a small but steady progress year on year, with the number of women in the Combined Executive Committee & Direct Reports increasing to 32.5%, up from 30.6% last year.

The FTSE 250 has made similar progress again this year, with the number of women in the Combined Executive Committee & Direct Reports increasing to 30.7%, up from 28.5% last year. The key drivers of progress are turnover and the appointment rate of women over men.

Across the FTSE 350 Leadership population, the turnover has dropped to around 22%, reducing the available opportunities in the year. The appointment rate of women remains low in a continuing theme, at just 38% and almost two out of every three roles going to men.

Women on Boards

The FTSE 100 has made good progress during the year, with women’s representation now standing at 39.1%, up from 36.2% at the beginning of 2021.

The FTSE 250 has also here made similar progress during the year, with women’s representation now standing at 36.8%, up from 33.2% at the beginning of 2021. Almost 200 boards (77%) have met, or exceeded the prior 33% target, and 92 FTSE 250 companies now have 40%, or more women on their board

Almost half of all FTSE 350 Boards now have a woman in either the Chair, or Senior Independent Director roles. The number of tokenistic ‘One & Done’ Boards has markedly reduced again this year to a remaining 6, down from 74 at the end of 2018.

The Recommendations

Building on the work and progress of the last decade, the stakeholders include some recommendations in the report, setting expectations and aspirational goals for the next stage in the journey to genderbalanced Boards and Leadership teams by the end of 2025:

• Increased voluntary target for FTSE 350 Boards, and for FTSE 350 Leadership teams to a minimum of 40% women, by the end of 2025.
• FTSE 350 companies to have at least one woman in the Chair or Senior Independent Director role on the Board, and/or one woman in the Chief Executive or Finance Director role in the company, by the end of 2025.
• Key stakeholders to set best-practice guidance, or have mechanisms in place to encourage FTSE 350 Boards that have not achieved the prior 33% target, to do so.