So, the much awaited Women on Boards report from Lord Davies is published. It has been welcomed by the government, with Vince Cable commenting “ I strongly welcome Lord Davies’ report and am committed to promoting gender equality on the boards of UK listed companies. We will therefore seriously consider its recommendations.
The report is clear that a business-led approach is the best way to increase the number of women on company boards, and we will therefore engage with business in considering his recommendations. Likewise we encourage regulators, investors and executive search firms to take forward those recommendations that fall to them.”
I too welcome the way this report encourages different stakeholders to do their bit in helping firms capitalise on the business benefits of having more women at the top. It presents the opportunity for those companies who have been slow to respond to gender changes in business over the past few decades to look afresh at their leadership structures and consider what will deliver a competitive advantage going forward.
A quick round up of the recommendations:
1. Chairmen of FTSE 350 companies, by September 2011, to set aspirational goals for the percentage of women on their boards in 2013. FTSE 250 companies encouraged to aim for 25% by 2015.
2. Quoted companies to disclose their annual number of female employees, women in senior executive positions and proportion of women on their boards.
3. UK Corporate Governance code to be amended to establish a boardroom diversity policy.
4. Companies to report on the above 3 matters in their 2012 Corporate Governance Statement; chairmen to sign a charter supporting the recommendations.
5. Companies to disclose in their annual reports their appointment process and how they address diversity in that process.
6. Investors to pay close attention to 1-5 when considering company reporting and board appointments.
7. Companies to periodically advertise non-executive board positions.
8. Executive search firms should draw up a Voluntary Code of Conduct addressing gender diversity and best practice for FTSE 350 board appointments.
9. Two populations of women to be considered for appointment to UK boards:
- Executives from the corporate sector
- Women from outside the corporate mainstream, including entrepreneurs, academics, civil servants and senior women from a professional services background.
10. The steering board to meet every six months to consider progress, and to report annually.
Let’s move on now from discussing the reasons why we need more balance in leadership roles, and start to focus on the more interesting debate about how to make it happen.
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