The FTSE Women Leaders Review is an independent, business-led initiative supported by the Government. It aims to increase women’s representation on FTSE 350 boards, leadership teams, and within the UK’s 50 largest private companies. Building on the Hampton-Alexander and Davies Reviews, it operates voluntarily, collaborating with businesses to drive gender balance. Below is our summary of the Lloyds and KPMG-sponsored report released in February.
Progress in 2024
British businesses continue to set a strong example in advancing women’s leadership, despite global challenges. Women now occupy 43.3% of FTSE 350 board roles and 35.3% of senior leadership positions. In the UK’s 50 largest private companies, women hold 36.8% of leadership roles and 30.5% of board positions, bringing the 40% target within reach but highlighting areas for improvement.
Nearly three-quarters of FTSE 350 companies have met or exceeded the 40% board target, showing the benefits of a diverse pipeline. However, progress in leadership roles remains slow, with men still dominating six out of ten positions. If current trends persist, the 40% target for leadership may not be reached until after 2025.
Key Findings – Women on Boards
Since 2011, women’s representation on FTSE 350 boards has improved significantly, reaching 43.3% in 2024. However, progress has been slower in the UK’s largest private companies, with women holding only 30.5% of board roles. The number of all-male boards in private firms has increased from five to seven over three years, indicating the need for further efforts. Greater transparency and proactive policies in these firms could help address this issue.
Key Findings – Women in Leadership
Women hold 35.3% of senior leadership roles in the FTSE 350 and 36.8% in private firms. The FTSE 100 and largest private firms lead with 36.6% and 36.8% representation, while the FTSE 250 lags at 34.2%. Despite improvements, six in ten FTSE 350 leadership roles remain male-dominated, highlighting the work still required. Consistent tracking and accountability mechanisms will be key in accelerating progress.
Progress in Key Leadership Roles
In the FTSE 350:
• Women hold 17% of Chair roles, increasing by seven appointments.
• Female Finance Directors account for 22%, up by nine companies.
• Women as Senior Independent Directors (SIDs) have risen dramatically to 56%, an increase of 30.
• Female CEOs have declined, with only 19 in position.
In the 50 largest private companies:
• Female CEOs have dropped to eight (19%).
• Women in SID roles have risen by nine points to 65%.
• Representation in Chair and Finance Director roles remains stable at 15% and 24%, respectively.
Women’s presence in key functional roles, including HR Directors, General Counsels, Company Secretaries, CIOs, and Finance Directors, is gradually increasing, but more progress is needed in decision-making roles. Mentorship and sponsorship programmes can play a critical role in addressing these gaps.
Recommendations for future progress
1. Strengthening the 40% target: The voluntary target of 40% female representation on FTSE 350 boards, achieved in 2023, should extend to leadership teams by 2025. This target fosters accountability, succession planning, and a strong female leadership pipeline. Boards and executive teams should implement clear action plans to ensure steady progress.
2. Women in key board and leadership roles: Each FTSE 350 company should aim to have at least one woman as Chair, SID, CEO, or Finance Director by 2025. Companies must also eliminate biases in selection processes. While Chair and SID roles have increased since 2017, progress in CEO and Finance Director positions remains slow and requires targeted action. Diversity metrics should be integrated into performance reviews.
3. Ensuring progress on FTSE 350 boards: Investment firms and corporate governance agencies should enforce best-practice guidelines to ensure all FTSE 350 boards meet a 33% female representation minimum. While almost 75% of companies exceed the 40% target, 21 boards remain below 33%, and 72 are on track to reach 40% by 2025. The voluntary approach necessitates continuous commitment. Regular progress reports will help sustain momentum.
4. Expanding to the UK’s largest private companies: The Review should extend to the UK’s 50 largest private companies, which employ nearly one million people and generate £237 billion in sales. Aligning governance standards across public and private firms will drive further gender balance in leadership. More structured initiatives, such as formal diversity targets and training programmes, should be implemented to accelerate change.
The UK’s voluntary, business-led approach has significantly advanced female representation in FTSE 350 boards and leadership roles. While progress is evident, challenges remain in CEO appointments and representation within private firms. Continued commitment from businesses, investors, and policymakers is crucial to maintaining momentum and ensuring a balanced, inclusive leadership landscape across the UK. Collaboration, best-practice sharing, and sustained focus will be key to achieving long-term success.
