Increase of women on FTSE 100 boards a positive step but more needs to be done to develop succession pipeline
10 February 2020
New research from the Hampton-Alexander Review
has found one third of Board seats at FTSE 100 companies are now held by women, ten months ahead of the December 2020 target, however progress to develop the succession pipeline across the FTSE 350 remains slow.
As part of the strengthened UK Corporate Governance Code, the Financial Reporting Council (FRC) expects companies to clearly set out how they plan to develop their diversity pipeline with much improved reporting, including progress towards any measurable targets.
The FRC’s recent review of early adopters reporting against the Code found far too many had limited reporting on diversity, which included how they plan to tackle the lack of women in senior leadership positions. Those companies that did report well had clear plans to meet diversity targets - beyond just gender - and understood the long-term value diversity brings.
Sir Jon Thompson, FRC CEO said:
“Successful and sustainable businesses should reflect the views of shareholders and wider society, with an understanding of the value greater diversity brings at both board level and throughout the business.
“Given the clear benefits greater diversity brings we expect to see improved reporting going forward to meet the Hampton-Alexander targets.”
A link to the Government's latest update can be found here