FTSE companies urged to appoint more women
A government-backed review published yesterday (13th November 2018) is urging FTSE 350 companies to do more to meet the target of a third of women in senior leadership positions by 2020. Figures published in the Hampton-Alexander Review’s 2018 report reveal the top 100 companies which make up the FTSE 100 index are on track to hit the target with more than 30% of board positions occupied by women. This has risen from 12.5% in 2011.
However, in the FTSE 350 almost one in four companies have only one woman on their board, and there remain 5 all-male boards. This means half the appointments to board positions will have to be filled by women over the next 2 years to hit the targets.
Report Highlights
Figures published yesterday in the Hampton-Alexander Review's 2018 report show a welcome increase in the number of women in FTSE 350 leadership positions.
- Top 100 companies on track to meet target of women holding one third of board level positions by 2020
- all-male boards across FTSE 350 continue to fall from 152 in 2011 to 5 today
- but 1 in 2 appointments to boards for FTSE 350 firms must be women if the target is to be met
Chair of the Hampton-Alexander Review Sir Philip Hampton yesterday said:
"Over 100 FTSE 350 companies have already achieved - or exceeded - the 33% target for women on boards, with a further 50 companies well on their way.
I would like to thank the business leaders and stakeholders that have driven progress in recent years for their significant and collective contribution. At the same time, too many companies still have a long way to go.
I am also delighted to see an increase in the number of women in the all-important senior leadership roles and companies working hard for some time now, delivering clear results."
Minister for Women and Equalities Penny Mordaunt yesterday said:
"When women are included we know that businesses are more likely to enjoy profits above their industry averages.
Today, we can see that the top UK companies are taking action, not just because gender equality is morally right, but also because it makes good business sense.
But there is still more to do. By addressing their inequalities and cultures, businesses are setting an example that gives women throughout their organisations the power to reach their full potential."
In the FTSE 100, 4 companies - retailer Next, online real estate provider Rightmove, financial services provider Hargreaves Lansdown, and household goods and construction company Taylor Wimpey - have 50% or more women on their boards. 6 FTSE 250 companies have met the same threshold.
The report also shows a welcome increase in the number of women in FTSE350 leadership positions just below the board, with FTSE 100 Executive Committees at over 21% women for the first time.
According to research by McKinsey, bridging the gender pay gap could add £150 billion to the UK economy by 2025.
Tackling the gender pay gap is a key part of the government’s modern Industrial Strategy, through which the government aims to help businesses create better, higher-paying jobs while boosting people’s earning power and ensuring that everyone has the opportunity to progress in the workplace.
Under new laws introduced in April 2017, voluntary, public and private sector employers with 250 staff or more were required to publish their gender pay gap. The UK was one of the first countries to introduce such measures.
Hampton-Alexander Review report
The Hampton-Alexander Review published its first report in November 2016. It is chaired by Sir Philip Hampton, and previously the late Dame Helen Alexander. The key recommendations are:
- 33% target for women on FTSE 350 Boards by the end of 2020
- 33% target for women on FTSE 350 Executive Committees and Direct Reports to the Executive Committee on a combined basis by 2020
- FTSE 350 companies to increase number of women roles of Chair, Senior Independent Director and into Executive Director positions on their boards
The government is also working to increase workplace diversity and address through:
- introducing a Race at Work Charter for businesses to increase ethnic minority representation in the workplace
- proposing mandatory ethnicity pay reporting to help address significant disparities in the pay and progression of ethnic minority employees
- Government announced in October it will be considering creating a duty for employers to consider whether a job can be done flexibly, and make that clear when advertising
Click here to read more about the Hampton-Alexander review.
