Gender diversity targets missed at FTSE 350 firms

The number of female CEOs running FTSE 350 companies has fallen during the past two years, missing UK government targets and failing to make any significant progress, according to the latest Women Count report. Funded by business diversity organisation Pipeline, the research found just 3.7% of FTSE 350 companies have female CEOs, down from 4.6% two years ago. Pipeline said it is the fourth consecutive year that the Women Count report has not tracked any improvement in gender diversity in senior roles at FTSE 350 firms, adding it “has been another wasted year of little or no progress”. More than 85% of companies do not count female executives at all on their main boards. Just 9% of executive directors on main boards are women, which Pipeline said is unchanged since 2017. Some 17% of executive committee members are female, an increase of 0.8% since 2018. The UK government’s target of one third of women in leadership roles at FTSE 350 companies by 2020 now looks to be out of reach. Pipeline said at the current rate of progress, “it will take until about 2090” before executive committees can achieve gender balance. It urged FTSE 350 companies to set minimum targets of 33% female representation on executive committees and at least one female executive director on their main board. It also called on the UK government to adopt a target of 33% women on executive committees as a requirement in public procurement for organisations with turnover exceeding £100m. Pipeline said fund managers could also do more to promote gender diversity and called on pension fund trustees to require fund managers have 33% female partners making investment decisions. Lorna Fitzsimons, co-founder of Pipeline, said: “When over 90% of men hold all the major positions from CEO, executive director and P&L roles, there is something seriously wrong. The top listed companies are systemically failing to utilise their equally if not more talented female colleagues.” Ms Fitzsimons added that companies would benefit from a greater gender balance in executive roles. “We need to redefine the best person for the job and factor in the value of diversity to the executive committee’s performance. Businesses severely limit the talent they attract and retain as well as their bottom line when they exclude women. It’s time for the government and fund managers to force change,” she said. Lord Jim O’Neil, chair of Chatham House and former chairman of Goldman Sachs Asset Management, said: “If Lehman Brothers had been Lehman Sisters, would they have precipitated the same credit crunch and subsequent banking crisis? Having men and women at the top table makes boards and executive committees smarter and leads to better decision making.” He added that companies can ill afford to exclude women from decision-making roles in business. Looking specifically at insurance companies in the FTSE 350, the Women Count report found that females make up 20% of executive committees, 7% of profit/loss roles and 5% of directors on boards. The global insurance industry’s fifth Dive In Festival that promotes diversity and inclusion (D&I) opened for registration last week, with a record number of countries taking part.

Gender diversity targets missed at FTSE 350 firms

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