The latest Female FTSE Board Report by Cranfield University, supported by EY, revealed a concerning decline in the number of female executives on FTSE 250 boards. Despite an overall increase in female representation on these boards, the number of women holding executive directorships has dropped by 11% over the past two years. This means that women now only represent 12% of executives across FTSE 250 companies.
The report also highlighted that 42% of overall directorships on FTSE 250 boards are currently held by women, which is a 3% increase from 2022. While 174 FTSE 250 companies have achieved the target of having at least 40% females on their board, there is still a significant gap in female representation in executive roles. Only ten women hold the position of CEO, which marks a 17% decline from 2022.
Sue Vinnicombe, Professor of Women and Leadership at Cranfield School of Management, noted that while progress has been made in meeting diversity targets, the glass ceiling for women in executive positions remains intact. The report highlighted an ‘executive gender paradox,’ where the number of women in non-executive director roles far exceeds those in executive roles.
The situation is not much better in the FTSE 100, where only 36 companies have women in executive director roles. Despite 43% of FTSE 100 directorships being held by women, the number of female CEOs and CFOs remains alarmingly low. Anna Anthony, EY UK&I Regional Managing Partner-elect, emphasized the importance of increasing female representation in influential roles to achieve true gender parity.
The report also identified missed opportunities to increase the number of female CFOs across the FTSE 350. While there were several outgoing CFOs, only a small number of women were appointed to these roles. Dr. Michelle Tessaro, Visiting Professor at Cranfield School of Management, highlighted the need to address the leaky pipeline of female talent in mid-career positions to bring about meaningful change in executive gender parity.
In conclusion, the Female FTSE Board Report underscores the ongoing challenges faced by women in reaching executive positions in top companies. While progress has been made in increasing overall female representation on boards, there is still a long way to go in achieving gender diversity in leadership roles. Companies must do more to support women in their career progression and address the systemic barriers that hinder their advancement.
