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Davies report calls for more women in boardroom | Davies report calls for more women in boardroom |
(about 2 hours later) | |
Firms have been told to more than double the number of women on their boards by 2015, or face government measures. | Firms have been told to more than double the number of women on their boards by 2015, or face government measures. |
Former minister Lord Davies of Abersoch has urged FTSE 350 companies to boost the percentage of women at the board table to 25% by 2015. | Former minister Lord Davies of Abersoch has urged FTSE 350 companies to boost the percentage of women at the board table to 25% by 2015. |
But he stopped short of imposing quotas, unless voluntary measures fail. | But he stopped short of imposing quotas, unless voluntary measures fail. |
The Chartered Management Institute (CMI) said the news would be welcomed by "nervous businesses". | The Chartered Management Institute (CMI) said the news would be welcomed by "nervous businesses". |
Lord Davies called on chairmen to announce in the next six months their goals "to ensure that more talented and gifted women" get top jobs. | Lord Davies called on chairmen to announce in the next six months their goals "to ensure that more talented and gifted women" get top jobs. |
"Currently 18 FTSE 100 companies have no female directors at all and nearly half of all FTSE 250 companies do not have a woman in the boardroom," he said. | "Currently 18 FTSE 100 companies have no female directors at all and nearly half of all FTSE 250 companies do not have a woman in the boardroom," he said. |
"Radical change is needed in the mindset of the business community if we are to implement the scale of change that is needed." | "Radical change is needed in the mindset of the business community if we are to implement the scale of change that is needed." |
CMI chief executive Ruth Spellman said: "The news that companies will not be forced to promote female workers to the boardroom by quota will be widely welcomed by nervous businesses." | CMI chief executive Ruth Spellman said: "The news that companies will not be forced to promote female workers to the boardroom by quota will be widely welcomed by nervous businesses." |
"However, a concerted effort still needs to be made to use female talent, otherwise companies will be missing out on a vast array of talent at their disposal." | "However, a concerted effort still needs to be made to use female talent, otherwise companies will be missing out on a vast array of talent at their disposal." |
Diverse talent pool | Diverse talent pool |
The main recommendations of the report include: | The main recommendations of the report include: |
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Other measures put forward include a call for more women to be promoted to executive committees to ensure there is a more diverse talent pool for companies to recruit female non-executive directors from. | Other measures put forward include a call for more women to be promoted to executive committees to ensure there is a more diverse talent pool for companies to recruit female non-executive directors from. |
"There is a business case, not just an equality case, for better diversity in the boardrooms of UK PLC," said Hay Group's UK managing director, Lesley Wilkin. | "There is a business case, not just an equality case, for better diversity in the boardrooms of UK PLC," said Hay Group's UK managing director, Lesley Wilkin. |
"Simply put, a diverse leadership team is a more effective leadership team." | "Simply put, a diverse leadership team is a more effective leadership team." |
'Hammer' blow | |
One area that Lord Davies did not specifically address was the need for more flexibility regarding part-time roles. | One area that Lord Davies did not specifically address was the need for more flexibility regarding part-time roles. |
"If you want to affect real change, and fast, then businesses should advertise more top-level roles with the possibility of them being worked part-time," said Karen Mattison, co-founder of recruitment firm Women Like Us. | "If you want to affect real change, and fast, then businesses should advertise more top-level roles with the possibility of them being worked part-time," said Karen Mattison, co-founder of recruitment firm Women Like Us. |
"That's the real hammer with which we'll crack this glass ceiling." | "That's the real hammer with which we'll crack this glass ceiling." |
Lord Davies called on companies to adopt a "comply or explain" approach, which would encourage companies to publish their own targets, and comply with them or explain to shareholders why they have not done so. | Lord Davies called on companies to adopt a "comply or explain" approach, which would encourage companies to publish their own targets, and comply with them or explain to shareholders why they have not done so. |
Currently a total of 113 women hold 135 FTSE 100 directorships - just over one per firm. | Currently a total of 113 women hold 135 FTSE 100 directorships - just over one per firm. |
The most recent report from the Cranfield School of Management on female representation in the boardroom found that in 2010 women made up only 12.5% of directors of the FTSE 100 companies. | The most recent report from the Cranfield School of Management on female representation in the boardroom found that in 2010 women made up only 12.5% of directors of the FTSE 100 companies. |
Only 5.5% of FTSE 100 executive directors were women. These executive director positions are typically the most senior and hands-on roles in companies, such as chief executives or chief financial officers. | |
Women are more likely to be non-executive directors. According to the report, women filled 15.6% of non-executive roles in 2010. These non-execs are external members on the board who are not involved in the day-to-day running of firms. | |
FTSE 250 companies have an even lower proportion of female directors than FTSE 100 companies, at 7.8%, and nearly half of them do not have any women in the boardroom. |