Women’s board seats at UK’s 350 largest listed businesses reached 40% for the first time in 2022, according to a UK government-backed analysis released on Tuesday, three years ahead of schedule.
Increasing boardroom diversity has become a priority for many governments and investors, who believe that having a diverse variety of experiences helps decision-making and corporate culture.
The business-led FTSE Women Leaders Review announced a 40% aim for women on boards and in leadership teams by 2025 for FTSE350 businesses in February 2022, up from a prior target of 33%.
The Financial Conduct Authority, which oversees publicly traded corporations, officially endorsed the new aim in April 2022, along with broader diversity targets.
According to the research, the proportion of women on FTSE 350 boards climbed by nearly 3% in 2022 to reach 40.2% as of Jan. 11, 2023, while women held 40.5% of board posts in the top 100 businesses, the FTSE 100, up from 39.1% in 2021.
“This progress is very welcome, and I’d urge business to keep up this momentum to achieve a better balance in leadership positions as well as in boardrooms,” Kemi Badenoch, business and trade secretary, and women’s equality minister said.
UK does not have a statutory quota system for women on boards of directors of publicly traded firms
In contrast to nations such as Belgium and France, the UK does not have a statutory quota system for women on boards of directors of publicly listed companies, making the advancement even more impressive, according to the research.
152 of the FTSE 350 Boards had no women on them just over a decade ago. There are now women on every board, and the vast majority of corporations have three or more, according to the report.
The proportion of women in leadership roles – defined as the executive committee and its direct reports – remains below the objective, with the FTSE 100 at 34.3% and the FTSE350 at 33.5%.