04th Apr 2011 - Women On Boards
It was reported last year that only 12.2 per cent of directors in FTSE 100 companies are women and FTSE 250 companies have an even lower proportion of female directors at 7.3 per cent.
This figure strongly suggests that British businesses are not using all of the skills and talents of the workforce effectively, particularly when women now form 51% of the UK population and 46% of the economically active workforce.
Women are responsible for the bulk of consumer buying decisions and consistently outperform their male counterparts educationally.
While UK boards must be meritocratic, this low figure does suggest that women are being denied the opportunity to reach their true potential and contribute fully to the UK economy.
In August 2010 the government was tasked with developing a business strategy to increase the number of women on the board of listed companies in the UK.
On 24th February 2011, Lord Davies launched his independent review into Women on Boards.
He recommends that UK listed companies in the FTSE 100 should be aiming for a minimum of 25% female board member representation by 2015. He has recommended in his report for government that FTSE 350 companies should be setting their own, challenging targets and expects that many will achieve a much higher figure than this minimum.
Home Secretary and Minister for Women and Equality Theresa May said: “Inclusive and diverse boards benefit from fresh perspectives, new ideas and broad experience. A company with a board that reflects the people it serves is better able to understand its customers, and there is growing evidence that companies with more women on their boards outperform their male-dominated rivals”
This view it seems is commonly shared with many UK companies recognizing that disregarding 50% of the talent pool will not produce the best boards. And it seems our counterparts overseas in Western Europe are not far behind us in sharing this view.
While this drive for change certainly won’t produce immediate results, it is refreshing to see a proportion of our clients already embracing these views and we look forward to seeing what changes 2011 and 2012 will bring.
Please send your comments to Sarah Daniels
