Tag: Lord Davies

Liz Bolshaw

It is not the first time that the diversity debate has moved from the executive to the owners of the UK’s largest companies, but this week’s launch of an investor action group adds muscle to that discussion.

Liz Bolshaw

“Any CEO who ignores the 42 per cent increase in sales [that diversity can provide through better corporate performance] should be shot,” Lynne Featherstone, minister for equalities, said this morning. “It’s not about equality for equality’s sake. It’s about making your company better.”

Liz Bolshaw

The deadline laid down by Lord Davies of Abersoch’s panel for FTSE 250 companies to set out targets for achieving greater board diversity has just passed. The press release reporting on what has been achieved skirts round the central question of how many companies have yet to report targets, but it is, unsurprisingly, strong on the progress that has been made.

Liz Bolshaw

The Professional Boards Forum has launched “BoardWatch” to track progress against the targets set down in Lord Davies’ report into the number of women on FTSE 100 boards. Drawing on data provided by BoardEx, a business networking service, BoardWatch will report monthly figures.

In the first of these reports, 31 per cent of new directors appointed to the boards of the UK’s largest 100 listed companies since March 1 are women. This has inched up the total percentage of women directors to 13.4 per cent (from 12.5 per cent at end-2010) and reduced the number of “stag” or all-male boards to 14 from 21.

Andrew Hill

As companies strive to meet targets – and, in a few countries, mandatory quotas – for women on corporate boards, one of the hardest myths to dispel is the lack of supply.

Andrew Hill

Simon Murray’s curriculum vitae – complete with a stint in the Foreign Legion, a love of helicopter flying and a penchant for endurance running – suggests he is an old-fashioned man’s man. But man’s men have learnt to keep to themselves any unreconstructed views on women in business. Instead, the newly appointed chairman of Glencore ran straight into a wall of criticism after telling the UK’s Sunday Telegraph that women are “not so ambitious in business as men because they’ve better things to do. Quite often they like bringing up their children…”

Linda Tarr-Whelan

Typically, investors focus on bottom-line results, sustainability and social responsibility – but that is no longer enough.

Liz Bolshaw

Catalyst, the US-based diversity think-tank, has published a new report in its Advancing Women in India series that benchmarks 56 companies with headquarters in India or that are subsidiaries of global businesses with head offices in Europe or the US.

Liz Bolshaw

A report published today by the Institute of Leadership & Management in the UK suggests that 73 per cent of women believe the glass ceiling still exists. The survey also finds that more than a third of women believe their gender has hindered their career progression.

These findings come just days before Lord Davies’ much-anticipated report into quotas is due to be published. As reported last week in the Financial Times, it is widely expected that his committee will not be in favour of quotas, instead putting pressure on headhunters to produce candidate lists that include 30 per cent women.

In the ILM online survey of 3,000 managers, evenly split between genders, almost half of women respondents (47 per cent) supported the imposition of quotas, against just 24 per cent of men. Moreover, while women over 45 were most in favour of quotas, with support from two-thirds of the sample, men in the same age group were most strongly opposed to them. Perhaps unsurprisingly, just 38 per cent of male respondents said they believed a glass ceiling still existed.

A clear majority of female managers were in favour of a subtler approach to gender equality in the boardroom and senior management. Almost two-thirds (62 per cent) agreed that “positive action” should be undertaken to increase the number of women in senior positions, compared with 42 per cent of men.

The survey also found a significant gap between men’s confidence and ambitions compared with those of women. While 70 per cent of male respondents described themselves as having “high” or “quite high” levels of confidence, only half of women did. Two-thirds of men said they expected to become managers at the outset of their careers, compared with just half of women.

The report also reveals that women, especially younger women, are more likely to aspire to run their own businesses. A quarter of women under 30 surveyed said they planned to start businesses within 10 years. This finding underlines other media reports, discussed recently in this blog, that women may be leaving working cultures where they feel unwelcome and choosing to go it alone.

Penny de Valk, chief executive of the ILM, had this to say on the findings:

“Employers who are serious about increasing gender diversity at the top need to recognise and respond to these differences, and find ways to nurture women’s ambition. This means developing transparent talent management systems and introducing leadership career models and development approaches that flex to meet individuals’ differing needs. Coaching and mentoring, in particular, have an invaluable role to play here.

“We know that gender diversity drives organisations’ financial performance. Business leaders should need no encouragement to realise this competitive advantage by ensuring their most talented employees move into leadership roles, regardless of their gender.”

Liz Bolshaw

A report in this weekend’s FT suggested that the UK government-sponsored inquiry into board diversity led by Lord Davies of Abersoch will stop short of imposing quotas for FTSE companies. Instead, the report says, boards may be given a two-year timeframe in which to meet a common minimum target – expected to be between 15 per cent and 30 per cent – to speed up the inclusion of more women on the boards of the UK’s largest companies.

Both the CBI, the employers’ group, and the Institute of Directors have been outspoken in their opposition to any common-to-all, compulsory targets. The CBI suggested that progress should reflect individual companies’ circumstances:

“For example, a media company with a high number of female staff may set a higher target for the number of women on boards, compared with an engineering firm with just a handful of female employees.”

The Institute of Directors is opposed to any imposition whatsoever:

“There are no shortcuts to greater gender diversity in the boardroom. As in other areas of corporate governance, the government should focus on long-term solutions rather than measures – such as board quotas or targets – that merely mask the symptoms of the problem.”

Lord Davies, who is due to report in two weeks’ time, has already disputed some of the arguments against legislative pressure to deliver more diversity. One objection has been the lack of suitably qualified women; another that women will rise to the top by their own efforts without the need for externally imposed targets.

But progress has been too little and too slow. The proportion of women on FTSE 250 company boards is just 7.8 per cent, and more than half of FTSE 250 companies have no women at the top.

In the past few weeks, Michel Barnier, the European Commissioner of Internal Markets, told the Süddeutsche Zeitung, a German national newspaper:

“I am open to the idea of introducing Europe-wide quotas for women – for example, in the boardrooms of publicly traded companies.”

Ursula von der Leyen, co-author of a recent study by the German Institute of Economic Research, has been dismissive of the effectiveness of Germany’s voluntary agreement to increase the number of women on German company boards. She told Der Spiegel magazine:

“The agreement has been an abysmal failure. Almost nothing has changed for women.”

While the UK is unlikely to go as far as Norway or Spain in its demands on listed company boards, there would appear to be consensus building throughout Europe that a degree of push is needed to ensure at least a minimum ratio of women on executive boards.

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About our bloggers

Liz Bolshaw

Liz Bolshaw is a business journalist and editor. She has been a successful book publisher, online editor, magazine editor and publisher.

She was launch editor of the Europe-wide online community Entrepreneur Country, has published magazines for PwC, 3i, dunhill and Bafta, and launched The Sharp Edge, a magazine for and about entrepreneurs, with Duncan Bannatyne. She is a regular contributor to Thomson Reuters’ Venture Capital Journal.

Her last project for the Financial Times was as editor of the paper’s Business Education magazine.

Rebecca Knight

Rebecca Knight is a freelance journalist based in Boston. She writes regularly for the FT on business education, entrepreneurship, and management.

Andrew Hill

Andrew Hill is an associate editor and the management editor of the FT. He was City editor of the FT and editor of the daily Lombard column on British business and finance from September 2006 to December 2010.

He was the FT’s financial editor from June 2005 to September 2006, with overall responsibility for coverage of companies and markets. Before becoming financial editor, he was the FT’s comment & analysis editor, in charge of the paper’s opinion and features pages.

From 1999 to 2003, he was the FT’s New York bureau chief. He joined the FT in 1988 and has also worked as foreign news editor, UK companies reporter and correspondent in Brussels and Milan.

Pino Bethencourt

Pino Bethencourt is a professor and leadership expert at IE Business School in Madrid. She is also an author and executive coach.

Lynda Gratton

Lynda Gratton is professor of management practice at London Business School.

Linda Tarr-Whelan

Linda Tarr-Whelan, former ambassador to the UN commission on the status of women, is a Demos distinguished senior fellow.