The Government
today welcomed Lord Davies’ report ‘Women on Boards’ which sets
out a series of recommendations to increase the number of women on
company boards.
The study suggests that companies should publish the number of
women sitting on their boards and working in their organisations
and recommends that businesses in FTSE 350 companies should set
their own targets for increasing female representation on their
boards by 2015. He suggests that the FTSE100 should challenge
themselves to increase the proportion of female directors on their
boards to 25% by 2015.
Business Secretary Vince Cable said:
"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.”
Home Secretary and Minister for Women and Equality Theresa May said:
“Inclusive and diverse boards benefit from fresh perspectives,
new ideas and broad experience. A company with a board that
reflects the people it serves is better able to understand its
customers, and there is growing evidence that companies with more
women on their boards outperform their male-dominated rivals.
“Women make up more than half of the population, but account for
just 12.5 per cent of FTSE 100 directors. Lord Davies’ report is
an important step forward in understanding why this is and what
can be done about it, and I shall be considering his findings very carefully.”
In his report Lord Davies also recommends:
Recognising the key role investors play in engagement with
boards; they should play close attention to the recommendations
from the report when considering re-appointments to a company
board;
companies should disclose information on the number of women
sitting on their boards and working in their organisations, as
well as the company’s appointment processes and how this addresses
diversity;
headhunting firms should draw up a voluntary code of practice
addressing gender diversity in relation to board level
appointments to FTSE 350 companies.
Notes to editors
1. Lord Davies report, ‘Women on Boards’ and the panels
recommendations can be seen here: http://www.bis.gov.uk/news/topstories/2011/Feb/women-on-boards
2. BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
TERMS OF REFERENCE FOR MERVYN DAVIES REVIEW
To consider options for promoting gender equality on the Boards
of listed companies. In doing so to consider the obstacles to
women becoming directors of listed company boards including
looking at existing research about women on listed company boards
and recent developments in international practice and to make
proposals on what action should be taken to improve the position.
It should involve interested parties including Board members,
executive search firms, investors and other interested parties in
considering proposals for change.
The business strategy will be presented jointly to the Secretary
of State for Business, Innovation and Skills and the Minister for
Women and Equalities. The business strategy should deliver a set
of recommendations with supporting material outlining the thinking
behind the recommendations and the views of key interested
parties.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joshua Coe
Phone: 020 7215 5943
Joshua.Coe@bis.gsi.gov.uk