Where is the new generation of women directors?

Citation

(2007), "Where is the new generation of women directors?", Women in Management Review, Vol. 22 No. 2. https://doi.org/10.1108/wimr.2007.05322bab.010

Where is the new generation of women directors?

Whilst women are achieving non-executive positions at a slow but steady pace, the percentage of women in executive roles on UK boards is still miniscule in relation to the percentage of women in the workforce (46 per cent), according to the 2006 Female FTSE report from Cranfield School of Management.

More worrying is the new information gathered on the next tier of senior personnel. Of the FTSE 100 companies, only 53 companies have women on their executive committee (the senior team chaired by the CEO), 30 have all male committees and the rest do not reveal their senior executive team. This study demonstrates that the management of female talent requires far more scrutiny and effort.

The report, which is launched at the offices of 3i at an event chaired by Baroness Sarah Hogg, reveals that even companies with good records in terms of female Non Executive Directors (NEDS) are still not addressing the lack of gender diversity in their senior executive committees.

The report shows that the total number of female – held directorships is down from 121 in 2005 to 117 in 2006. Within this, the number of female executive directors is only 15 out of a possible 391 executive seats.

In the Female FTSE Index, companies with the highest percentage of female Board directors include first place Astra-Zeneca (four female NEDS) and second place British Airways (3 NEDS). Lloyds TSB not only distinguishes itself with a 27 per cent female board, including two female executive directors and two female non-executive directors female executive committee, but also has a 33 per cent female executive committee. Reuters joins Lloyds TSB at the top of the executive committee index with its 33 per cent female executive committee, as well as having two female NEDS.

Report co-author Dr Val Singh of Cranfield School of Management, said: “The figures are disappointing, though do need to be put into context. Changes in Board composition prompted by the Higgs review have led to a reduction in executive directorships and hence more competition for the fewer executive seats. The research highlights a glass door to the executive boardroom, with a significant lack of women in the senior executive committee, the next generation of female executive and non-executive directors. It was therefore particularly encouraging to note the recent appointment of Cynthia Carroll as CEO of Anglo-American.”

On a more positive note co-author Professor Sue Vinnicombe OBE pointed to the pool of named, talented women in the boards and senior executive committees of the FTSE 250 companies. “The challenge is how to connect these talented women to the many chairmen who are actively looking for high quality women to join their boards.”

Deputy Minister for Women, Meg Munn said: “It's disappointing that UK businesses are putting themselves at a real disadvantage by not selecting the best executives from the largest talent pool possible. Increasing the number of women at director level can extend a company's portfolio of skills, provide role models for younger, high potential women and place companies closer to their customer base.”

The Government recently announced a package of measures in response to the findings of the Women and Work Commission to improve the prospects of women in the labour market. “We are determined to bring about a culture change from the playground to the boardroom and directors and investors have the opportunity to play a hugely influential part in this process – we urge them to work with us to lead the way” she added.

A copy of the Female FTSE report is available from Alison Southgate, Centre for Developing Women Business Leaders, Cranfield School of Management. Tel: 01234 751122 Extension 3801, or e-mail a.southgate@cranfield.ac.uk