Women on boards of largest companies reaches all-time high

More women than ever before are on the boards of the UK’s largest companies. As of this month, they have 23 per cent of boardroom positions, not far short of the government’s target of 25 per cent by 2015.

However, Vince Cable, business secretary, urged companies to keep up the momentum, adding those that had not met the target “need to take firm action now”.

Mr Cable and Lord Davies, who wrote a report on the subject in 2011, have also written to the chairmen of smaller companies, warning that “doing nothing is not an option any more” and that “we will continue to shine the spotlight on the remaining companies” that have not met the 25 per cent target.

Between March and October, the percentage of women on boards of FTSE100 companies rose from 20.7 to 22.8 per cent, or 249 of 1,094 board positions, according to the Department for Business, Innovation & Skills.

At smaller FTSE250 companies, the percentage, although significantly lower, rose from 15.6 to 17.4 per cent. Thirty-nine companies have now met the 25 per cent target, up from 36 in March.

“From a low start at 12.5 per cent in 2011 . . . progress of this order is by any standards an amazing achievement,” said Lord Davies. “Our goal is clearly in sight, albeit 25 per cent is not gender parity.”

In July 2014, the last bastion of all-male boards in the FTSE100 fell when Glencore appointed its first female non-executive director, Patrice Merrin. It had been the only UK blue-chip without a woman on its board this year after Antofagasta, the copper miner, hired a former Chilean minister.

Also in July, however, Mr Cable’s hopes of using all-female shortlists to get more women on to boards were dashed when the Equality and Human Rights Commission said it would be unlawful.

Although 19 more boards in the FTSE250 had appointed at least one woman since March, 28 all-male boards remain.

“This is not about political correctness. This is about good governance and good business, ” Mr Cable and Lord Davies wrote in their letter to FTSE250 chairmen.

“The international evidence supports this: diverse boards are better boards benefiting from fresh perspectives, opinions and new ideas which ultimately serve the company’s long term interests.”

FTSE250 companies with no women on their board include 3i Infrastructure, Centamin, City of London Investment Trust, Enterprise Inns, Ferrexpo, JD Sports Fashion, Perpetual Income & Growth Investment Trust and Petra Diamonds.

“Having reached a position where it is unacceptable for the voice of women to be absent from the boardroom, it is disappointing to see there are still 29 all-male boards in the FTSE 250,” Lord Davies said.

Although female representation on boards increased, they still account for only 8.4 per cent of executive directorships at FTSE100 companies. And the number of new appointments going to women also fell – to 31.8 per cent of all new appointments, down from 35.5 per cent in the previous six months.