The Slow Climb to Equality: Why Are Women Still Underrepresented in UK Boardrooms?
Progress towards gender equality in the upper echelons of British business remains “achingly slow,” according to the latest FTSE Women Leaders Review. Despite gains over the past decade, the number of female CEOs leading FTSE 100 companies currently stands at nine – a figure that barely budges from previous years. This raises critical questions about the barriers women face in reaching the very top and what it will take to accelerate change.
The Current Landscape: A Mixed Picture
While the representation of women on boards has improved significantly – reaching 43% in the FTSE 350 and 44% in the FTSE 100 – leadership roles like CEO, CFO and Chair continue to be dominated by men. The FTSE 350 missed its voluntary target of 40% female representation in top executive roles by 2025, achieving only 36%. This disparity highlights a persistent challenge: getting women into revenue-generating positions, which are often seen as crucial stepping stones to the CEO role.
Currently, the FTSE 100 companies with female CEOs include BT (Allison Kirkby), National Grid (Zoë Yujnovich), Admiral (Milena Mondini de Focatiis), Entain (Stella David), United Utilities (Louise Beardmore), Vodafone (Margherita Della Valle), Aviva (Amanda Blanc), and WPP (Cindy Rose). However, recent departures from GSK (Emma Walmsley) and Severn Trent (Liv Garfield), alongside the upcoming change at BP, demonstrate the fragility of these gains.
Why the Stagnation? The Pipeline Problem and Beyond
Experts point to a multifaceted problem. Vivienne Artz, CEO of the FTSE Women Leaders Review, emphasizes the need to focus on the “talent pipeline,” ensuring women gain experience in key roles that demonstrate financial acumen and leadership. This means providing opportunities for women to lead profit and loss (P&L) functions, which are often viewed as essential for CEO consideration.
The issue isn’t simply about a lack of qualified women. It’s about systemic biases, unconscious prejudice, and a lack of flexible working arrangements that can hinder women’s career progression. The recent Employment Rights Act, with its stronger protections for mothers and tougher sexual harassment laws, represents a step in the right direction, but more needs to be done.
Beyond the FTSE 100: Lessons from France and the G7
The UK ranks second among G7 countries for women in the boardroom, trailing only France. France’s success is often attributed to mandatory quotas for female representation, a policy the UK has resisted. While quotas can be controversial, they demonstrably accelerate change. The French Cac 40 currently boasts 45% female board representation.
Companies like Burberry and Next are leading the way in terms of female representation within their leadership teams, while Games Workshop and Fresnillo lag behind. This demonstrates that progress is possible, and that companies can choose to prioritize gender diversity.
The Role of Non-Executive Directors
Interestingly, female representation among non-executive directors (NEDs) is significantly higher, standing at 49% in the FTSE 350 and 50% in the FTSE 100. This suggests that companies are more willing to appoint women to advisory roles than to positions of executive power. While NEDs play a vital role, true equality requires women to be at the helm, making strategic decisions and driving business performance.
FAQ: Gender Equality in UK Business
Q: Has the number of female FTSE 100 CEOs increased over time?
A: Yes, but progress has been slow. The number peaked at 10 in 2023, but currently stands at nine.
Q: What is the FTSE Women Leaders Review?
A: It’s a government-backed initiative that monitors and reports on the representation of women in leadership positions in UK businesses.
Q: Is the UK doing enough to promote gender equality in business?
A: While progress has been made, many believe more needs to be done, particularly in addressing the pipeline problem and tackling systemic biases.
Q: What is the role of non-executive directors?
A: They are part-time board members who provide guidance without being involved in daily business operations.
Q: What is the current status of women in board positions?
A: Women hold 43% of board seats in the FTSE 350 and 44% in the FTSE 100.
Did you know? The UK ranks second among G7 countries for women in the boardroom, behind France.
Pro Tip: Companies that prioritize diversity and inclusion are more likely to attract and retain top talent, leading to improved innovation and financial performance.
What steps do you think UK businesses should take to accelerate progress towards gender equality? Share your thoughts in the comments below!
