FTSE 100 BOARDS GET SILVER; WOMEN OLYMPIANS TAKE GOLD
FTSE 100 BOARDS GET SILVER WOMEN OLYMPIANS TAKE GOLD
More female Non-Executive Directors were appointed to FTSE 100 boards than men for the first time last quarter, but the overall numbers still falls short of the gold medal tally set by Team GB’s female Olympians
LONDON: 28 August 2012 – Leading executive search firm, Norman Broadbent, today issues its quarterly board index, the Norman Broadbent Board Index&trade, which shows that women accounted for 56% of NED appointments in the most recent quarter, taking the FTSE 100 total of women on boards to 16.7%. By contrast, the performance of our GB heroines, who secured 38% of the gold medal tally at the recent London Olympic Games, shows that there is still some way to go before women are making a similar impact on board numbers.
Women now account for one in five non-executive roles on FTSE 100 Boards. By contrast, the index also highlights that for the third quarter running no women were appointed as executive directors of FTSE 100 companies, and, for the first time, no women were appointed as executive directors of FTSE 250 companies in the past quarter.
“With executive changes happening relatively infrequently, it is no surprise that boards have responded to Lord Davies 25% target by appointing more women as Non-Executive Directors and great progress has been seen, especially during the last quarter,” said Neil Holmes, a director of Norman Broadbent’s Board Practice. “However, the dearth of females being appointed to executive positions is a cause for worry and highlights the lack of women holding senior positions throughout organisations.”
The index warns that the proportion of all executive directors on boards is decreasing. Sue O’Brien, chief executive of Norman Broadbent said: “While cost containment is an understandable response to the current environment, shrinking executive numbers must be a concern. We need to encourage greater breadth and diversity of functional experience on PLC boards to enable companies to respond more effectively in today’s fast moving international markets. Our attention should be turned to the pipeline of executive talent.”
However, it is worth noting that since the Index began (in January 2011) the number of new Non-Executive Directors (NEDs), those taking on their first PLC non-executive role, has remained steady, at approximately 35% of all non-executive appointments. “We welcome the foresightedness of boards appointing individuals who have not previously been a Non-Executive Director, as this can bring greater diversity of experience to boards.” said Krystyna Nowak, a director of Norman Broadbent’s Board Practice. “Although new non executives often benefit from more initial mentoring by experienced chairmen to ensure that they make a successful transition from executive to non-executive involvement, it is encouraging to see that chairmen are investing in the development of a new breed of non-executive”.
For the first time, more women than men were appointed to the Boards of FTSE 100 companies in the last quarter, accounting for 56% of Non-Executive Director appointments
For the third quarter running, no women were appointed as executive directors of FTSE 100 companies
42% of NEDs appointed to FTSE 250 companies were women in the past quarter
For the first time, no women were appointed as executive directors of FTSE 250 companies this quarter
17% of NEDs and 20% of executive appointments to small-cap PLCs were women
30% increase in women on the boards of FTSE 100 companies since January 2011
Women now account for 16.7% of all Directors in the FTSE100
Account for one-in-five NED roles
Only 6.5% of FTSE 100 executive directors are women
38% increase in women on the boards of FTSE 250 companies
10.9% of FTSE 250 directors are women
Only 4.5% of FTSE 250 executive directors are women
42% increase in the number of women on small cap PLC boards
10% of all directors on small cap boards are women
6.1% of executive directors in small cap companies are women
The number of executive directors as a proportion of total board members continues to shrink across all indices, with the proportion of executive directors down approximately 5% since January 2011
In Q2 35% of NEDs appointed are taking on their first PLC non-executive role
The Norman Broadbent Board Index&trade
2012 Q2 Index
Executive v Non Executive Board Balance
% of Women on boards
Women as a % of total board members
Average age of Board
Time in Role
Norman Broadbent Board Index&trade started from a base of 100 taken from Boardex as of first working day of January 2011
Q2 2012 data released in July 2012.
Methodology and background
The Norman Broadbent Board Index has been calculated from data supplied by BoardEx. Quarterly percentage movements in board composition covering a number of factors are measured against the composition of boards in January 2011, prior to the launch of Lord Davies’ review. The changing composition of each index as a result of the London Stock Exchange’s quarterly review is also taken into account. The data is taken from the first working day of each quarter (January, April, July and October) and compared with a base period being the composition of the FTSE 100, 250 and Small Cap boards, as of the beginning of January 2011. The data takes into account the changing composition of the FTSE 100, 250 and Small Cap as defined by the FTSE.
In Lord Davies’ report on Women on Boards early in 2011, he recommended that UK listed companies in the FTSE 100 should be aiming for a minimum of 25% female board member representation by 2015. He further recommended that chairmen of all FTSE 350 companies should set out the percentage of women they aim to have on their boards in 2013 and 2015. Norman Broadbent are also keen advocates of the Women’s Business Council set up to look at ways of maximising women’s contribution to economic growth.The council will assess priorities in challenging the barriers that women face in playing a full part in business and the workplace.