In October 2015, Lord Davies of Abersoch CBE published his final report assessing the progress of FTSE companies in reaching the gender diversity targets that were set four years ago.

The 2011 targets included the aim of 25% female representation on FTSE 100 boards by 2015, with FTSE 250 boards to also aim for 25% over a longer time frame.
The report accredits the large culture change that has taken place to achieve the more than doubling of female representation on the FTSE 100 board in the last five years.

Findings (as at 1 October 2015):

  • There are no male-only boards in the FTSE 100
  • There remain 15 male only boards in the FTSE 250
  • Women hold 26.1% of board positions in FTSE 100 and 19.6% within the FTSE 250

The report commented on the UK's progress compared with that of other European countries, which implemented quotas to achieve greater female representation on boards. It was concluded that if the UK did not progress beyond the current 25% female representation in the coming years, it would fall behind both in Europe and internationally. The report continues to endorse the success of voluntary targets in the UK.

Considerations

The report highlights the following key considerations. Companies should aim to:

  • Increase the target for women's representation on FTSE 350 boards to 33% by 2020
  • Strengthen women's representation in the executive layer below the board, by extending female representation targets to include that area and to improve gender balance in senior leadership positions
  • Increase the number of women who are appointed to the role of Chair, SID and into executive director positions
  • Continually assess of the overall diversity of the board and those leading the business, from a wide range of backgrounds and bringing different skills and views
  • Consider broader populations of women for board directorships, extending beyond the corporate and professional services sectors
  • Consider the diversity of the board, including gender, when evaluating board effectiveness
  • Set realistic, achievable and stretching targets and engage with investors about those targets
  • Advertise NED board positions
  • Provide meaningful disclosure on gender balance and action
  • Adopt best practice throughout the organisation.

Companies should broadly consider and aim to increase diversity throughout the organisation and should endeavour to meet the relevant targets set out in the Davies Report.

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