A view from the CFO Practice at Green Park
15th November 2017 2 minutes read
The Enhanced Code of Conduct requires a more rigorous standard of best practice in gender-balanced selection for FTSE 350 Boards as well as smaller FTSE listed companies, large privately owned, Mutual, Government or large Not-for-Profit Boards.
In 2016 the Hampton-Alexander Review set a series of recommendations designed to increase the number of women in senior leadership positions in all FTSE 350 companies. The Review called for immediate action to be taken from all stakeholders setting a target of 33% women on all FTSE 350 Boards and 33% women in all FTSE 100 senior leadership teams by 2020.
In its 2017 report, the Hampton-Alexander Review found that the number of women sitting on FTSE 100 company boards has more than doubled since 2011. However, this number still only amounts to 28% of all board positions. For the 33% in 2020 target to be accomplished, 40% of all senior appointments within the FTSE 350 will have to be filled by women over the next three years.
Currently, within the FTSE 100 there are seven all-male executive committees, down from 12 and representation of women on the Executive Committee has risen to 19.3% (18.7% in 2016). Only 15 FTSE 100 companies have already achieved the 33% target.
The FTSE 350 has seen a sharp decline in all-male boards; since 2011 the number of all-male boards has fallen from 152 to eight. These eight companies represent six different sectors which combined have the highest overall representation of women, highlighting the fact that it is not the sector that is creating a barrier to progress.
It is our shared responsibility to ensure that women with the talent, drive and ambition have the same opportunities as their male counterparts. The pipeline of future female leaders in the UK is undeniably robust and we are pleased to publish a list of Board-ready REAL Models, published annually for International Women’s Day, to prove just this. Businesses and senior business leaders are starting to understand that there is a business case for diversity impacting performance, productivity and the bottom line in addition to being a vital issue for our society to address.
At Green Park, we understand how to find and recruit executive diverse talent on behalf of our clients, but we also understand that it is important to impart that knowledge to the organisations we work for. We have helped a large number of leading organisations create platforms that effectively and directly attract diverse talent and to assist these clients in the effective management, development and retention of existing diverse talent.