Just 3% of executive directors and 8% of non-executive directors are women says a report by Deloitte; but says women’s network Aurora women are getting more savvy and are dismissing complacent employers who may block their path to the top.
The news comes despite findings that 70% of FTSE 350 companies have made changes to their board compositions in the last year which include moves towards smaller boards and fewer executive directors.
Changes to board structures have been brought about by compliance obligations following the Higgs recommendations and the new Combined Code which outlines rules governing the selection of board members.
Deloitte partner, Rupert McNeil commented:
“There is evidence that FTSE 350 companies are widening the pool from which they recruit non-executive directors, including professionals from advisory firms and individuals from non-UK countries. We anticipate the number of female board members will increase over coming years. The new combined code requirement for nomination committees to use a more structured search and selection process may help to facilitate this.”
The number of FTSE 350 companies establishing formal nomination committees and a decline in the numbers of executive chairman particularly in FTSE 100 companies where only 20% have an executive chairman compared to 36% two years ago show that changes in FTSE 350 board structures are afoot, says the report.
This lack of female board presence, however, says Aurora still sends signals to women who may dismiss companies that prevent them from getting to the top.
Speaking to HRZone, Aurora’s CEO Glenda Stone said:
“Women are becoming far more diligent in choosing employers. They are doing their homework on companies that provide fair, transparent, routes to the top. Women have now sussed out that no matter how good a business is if they are in the wrong company they will not make it to the top. Boardroom diversity is a good barometer of complacency. The relationship between where women want to work, spend and invest is becoming clearer.”
