Lord Davies review of women on boards, next steps

Lord Davies published his final report on Women on Boards which has seen history made with more women on boards than ever before. In it he recommends a new target of 33% female representation on all FTSE 350 boards by 2020 and five steps to maintain the momentum built up since 2011.

This is a priority for this government

Education Secretary and Minister for Women and Equalities, Nicky Morgan said, “There has never been a better time to talk about gender equality. Whether it’s in living rooms, boardrooms or on our TV screens - more and more people are debating these issues. And let me be clear, this is a key priority for me and for this government.”

“The Prime Minister could not have been clearer when he said at Conservative Party Conference 2015 ‘You can’t have true opportunity without equality’. And it sends a powerful signal that it was at the CBI conference where he chose to pledge to end the gender pay gap in a generation.”

Just this weekend I joined him in announcing further bold steps to end gender inequality:

we will force larger employers to publish information about their bonus gap as part of their gender pay gap reporting. Bonuses represent over £40 billion each year and we know that women often miss out
we will extend this commitment to the public sector because it’s only fair that what we ask of business we should expect of ourselves
We have introduced the right to request flexible working and shared parental leave. And we will deliver on our commitment to double the free hours of childcare for parents of 3- and 4-year-olds. Because childcare is as important to men as it is to women.
We have also called for an end to all-male boards anywhere on the FTSE 350. Because it is unacceptable that in this day and age there remain any all-male boards. And I’m sure that we’re all looking forward to the day when not a single one is left!"

Women on Board Progress

When Lord Davies and his steering group started this ambitious agenda in 2011 women made up just 12.5% of FTSE 100 boards; and just a few years later, we’ve seen that double - its now at 26.1% on FTSE 100 boards and 19.6% on FTSE 250 boards.

There are more women on FTSE 350 boards than ever before, with representation of women more than doubling since 2011 - 550 women appointed to FTSE 350 boards since 2011.

We have also seen a dramatic reduction in the number of all-male boards. There were 152 in 2011. Today there are no all-male boards in the FTSE 100 and only 15 in the FTSE 250.

There remain 15 all-male boards in the FTSE 350 and progress has been far too slow in getting more women into Executive Director roles.

Lord Davies final report - next steps

Lord Davies report also makes the following 5 recommendations:

1. Voluntary Approach Working Albeit More to be Done

The national call for action and voluntary, business-led approach is continued for a further five year period, ensuring substantive and sustainable improvement in women’s representation on Boards of FTSE 350 companies into the future.

2. Increased Target, More Chairs and Action from All Listed Companies

Increasing the voluntary target for women’s representation on Boards of FTSE 350 companies, to a minimum of 33% to be achieved in the next five years. All stakeholders to work together to ensure increasing numbers of women are appointed to the roles of Chair, Senior Independent Director and into Executive Director positions on Boards of FTSE 350 companies. All FTSE Listed companies now assess the gender balance on their Boards and take prompt action to address any shortfall.

3. Focus on the Executive Layer

FTSE 350 companies extend the best practice seen at Board level to improve gender balance and look to fundamentally improve the representation of women on the Executive Committee and senior-most leadership positions.

4. Independent Steering Body

An independent steering body, made up of business and subject matter experts with a newly appointed Chair and members, is re-convened to support business in their efforts, act as a catalyst for sustained progress, monitor and report periodically on progress.

5. Maintaining Momentum and Next Steps

Steering body review the Recommendations 1-4 above and in consultation with key stakeholders, publish more detailed comments as appropriate, at the beginning of 2016.

Click here to download a copy of Lord Davies’ Final Report on Women on Boards 2015.