You are here: Home - Investing - Experienced Investor - News -

Review calls for more women at the top of FTSE 350 companies

0
Written by:
09/11/2017
The UK’s largest companies are under pressure to promote more women to senior leadership roles, in a bid to make the UK a world-leader on gender diversity at the top of business.

Figures published today in the Hampton-Alexander Review 2017, chaired by Sir Philip Hampton and the late Dame Helen Alexander, reveal almost 28% of board positions in FTSE 100 companies are held by women – up from 12.5% in 2011. This puts FTSE 100 companies on track to meet the review’s 33% target for women on boards by 2020.

In that time the number of all-male FTSE 350 company boards fell to eight from 152. Sir Philip called on FTSE 350 companies to accelerate the pace of change, extending the 33% target to senior leadership positions of all FTSE 350 companies. He said that at least 40% of appointments to senior positions will have to be filled by women over the next three years if FTSE 350 firms are to hit the ambitious targets.

There are real incentives to hit gender diversity targets. Research by index provider MSCI shows companies in the MSCI World Index with strong female leadership generated a higher return on equity (a measure of how well a company is run) – 10.1% per year versus 7.4%.

Sir Philip said: “Some of our largest companies have made significant progress towards meeting these challenging targets, both on boards and in their leadership teams. We should be seeing all FTSE companies now making strides to improve the gender balance at the top.

“This year we have seen progress pick up on FTSE 100 boards and go slow elsewhere. We must now renew commitment to this important issue for UK business to fully harness the under-utilised potential of the many talented women in the workplace.”

Business minister Margot James said it was time for the business community to step up to the challenge to make the UK a world leader: “We have seen time and time again that our most successful companies are those that champion greater diversity and inclusion, and our largest companies are stepping up their efforts on this issue in order to reap both the societal and economic benefits.”

Lady Barbara Judge CBE, chairman of the Institute of Directors, said the next challenge was to create a step-change in the proportion of senior executive positions held by women. In this way, we can build a pipeline of female talent to consolidate and build on the improvements seen in the last few years.

All FTSE 100 companies, and 96% of FTSE 250 companies excluding investment trusts, voluntarily responded to the review’s requests for their gender diversity data.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
home survey
Home sales fall in most UK regions but London and SE slump deepening

A drop in buyer demand caused the housing market to stutter its way through October, with prices in London, the...

Close