FTSE companies among European front-runners when it comes to bringing gender balance to their Boards

As well as publishing data on the latest position, the Review re-confirmed the four recommendations set out in its first report and their effectiveness in setting expectations and aspirational goals for achieving more gender-balanced boards and leadership teams by the end of 2025. The Review lauded the 'tremendous achievement' that the target for 40% female representation on FTSE 350 boards had been met in January 2023, three years ahead of target. The Review also noted that the response from the Top 50 private companies, who were included in scope for the first time this year has been encouraging, both in terms of their willingness to participate in the Review and in terms of actual progress. The representation of women on the boards of private companies stands at 31.8%.

Not content with the positive developments to date, focus now shifts for the next three years to replicating the successes had on board representation with improved gender representation in senior leadership positions (and in particular, the 'big four' roles of Chair, Senior Independent Director, Chief Executive and Chief Financial Offer). Whilst the number of women in FTSE 350 Chair and Senior Independent Director positions has been steadily increasing since 2017, this has not been the case for Chief Executive and Chief Financial Offer roles. In 2022, women occupied 16% and 38% of Chair and Senior Independent Director roles, respectively. Similarly, in 2022 only 19% of Financial Directors were women and the number of women holding the Chief Executive role remains stubbornly low. The Report noted that a decreased turnover across the FTSE 350 leadership population to approximately 22% reduced the available opportunities in the year and identifies this as an area requiring 'laser-like focus' in the year ahead. That being said, the number of women on the board in one of the four key roles in private companies was encouraging with 32% of executive directors being women.

The Report noted that one of the challenges to the UK's voluntary, business-led approach is how one encourages those companies who may be slow to act, or who slip back from progress following leadership changes. However, when compared to the 11 other countries considered by the Review, the UK ranks second only to France in percentage terms for board gender balance and ranks first among countries with similarly voluntary regimes. The UK voluntary business-led approach appears not only to be working, but has created new career paths and opportunities for senior women. The foundations are clearly laid and the Review are now challenging companies to construct a gender-balanced environment that permeates throughout their leadership.