Top UK firms increase women leadership roles to 35%

The UK’s largest businesses have been urged to “double-down” on redressing gender balance, with just two years remaining to increase the current level of women in leadership roles in FTSE 350 companies from 35% to a voluntary target of 40%. More than half (56%) of FTSE 350 companies have met or are on track to meeting the 40% Women in Leadership target set by the independent review.

The FTSE Women Leaders Review says almost half of all available appointments at FTSE 350 companies will need to be filled by a woman to meet the end-2025 target. But the review finds more than six out of every ten vacancies in the previous year have been given to men, and it highlights a “disappointing” drop in the appointment rate of women in FTSE 250 companies, where 36% of all available roles in the year were awarded to women compared with 41% for FTSE 100 firms.

Backed by the UK government and sponsored by Lloyds Banking Group and KPMG, the FTSE Women Leaders Review finds a record-high 42% of women now take a seat at the boardrooms of FTSE 350 companies, up from 40.5% and running second only to France in an international comparison.

“With 350 public-listed companies and almost 3,000 board seats in scope, the UK out-runs most of its international counterparts in scale and ambition, with progress achieved through entirely voluntary action and commitment from business,” the report says.

However, 29 firms in the FTSE 350 have yet to meet the 2020 target of 33% female board members and 115 have yet to meet the 2050 target of 40%.

While the report highlights progress in the number of women in senior independent director roles, up from 37% last year to 47%, the number of women in chair roles across the FTSE 350 has fallen from 55 to 53. The FTSE 100 tracked an increase in women CEOs from nine to 11 – including GSK, Aviva, Diageo, Vodafone and Taylor Wimpey – but across the FTSE 350 just 21 companies are headed by a female CEO.

The report highlights an increase in women finance directors and chief information officers to about a quarter of all FTSE 100 companies.

While the review tracks an increase in women at the top of UK businesses, the report calls for a “step change” from some companies lagging behind the curve.

“Gender balance at the top of British business is clearly in sight but the job is not yet done,” it says.

The UK’s largest 100 firms listed in the FTSE 100 are making greater progress in women in leadership roles than the FTSE 250. The number of women in leadership roles at FTSE 100 firms has increased from 34.3% last year to 35.2% while the comparable figure for FTSE 250 firms sits at 33.9%.

Burberry Group leads with the highest proportion of females in leadership roles at 55.2%, followed by new entry to the top ten Marks & Spencer with 51.3% of women in leadership roles, and Next Group in third place at 50.6%. National Grid polls in fourth place with 48.7% of leadership roles occupied by women and Lloyds Banking Group in fifth place with 46.9%: both companies made the top ten for the first time.

Denise Wilson, CEO of the FTSE Women Leaders Review, said: “Over the last decade we have seen near revolutionary change in the culture and dialogue at the top of British business, with diversity in leadership now viewed as a business imperative that is key to long-term success. While we have the strongest ever supply of experienced, capable women ambitious for themselves and for their organisations, the appointment rate is still skewed in favour of men. To fuel further, faster progress and deliver gender balance, this will need to change.”