Firms making effort to diversify boards, but more female executive still needed, says Deloitte
28th May 2012
Posted by Rachel Krys
The majority of UK companies are making efforts to improve the gender, race and cultural diversity of their boards, a new report by Deloitte reveals.
However, more still needs to be done to increase the number of female executives on the boards of the country's biggest firms, says the auditor.
A survey of company secretaries, shareholders and individual non-executive directors by the firm found that over three-quarters of companies are actively trying to increase the diversity of their boards.
"Businesses are starting to recruit from more diverse backgrounds and we believe this is a very positive move which will be welcomed by shareholders," said Carol Arrowsmith, partner in the executive compensation team at Deloitte.
"Our survey suggests that shareholders are focused on board diversity with over three quarters intending to increase the level of engagement with companies on this issue over the coming year."
One important facet of board diversification has been a focus on improving gender equality, and the survey suggests this may be beginning to pay off, with almost 30 per cent of FTSE 350 non-executive board appointments in the past year going to women - more than double the overall proportion of women on boards.
However, executive appointments are still lagging behind, with just one in ten of these going to women in the past year.
"This is an improvement on the overall number of executive positions held by women, which stands at around one in every 20, but it is not enough," said Ms Arrowsmith, pointing out that executive appointments are "where many of the non-executive directors of the future are likely to emerge from".
The report follows last year's review into women on boards by Lord Davies, in which he recommends that UK listed companies in the FTSE 100 should be aiming for a minimum of 25 per cent female board member representation by 2015.
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