On 24 February 2011 Lord Davies published his report into ‘Women on Boards’ which sets out a series of recommendations to increase the number of women on company boards, including the following:
- FTSE 100 companies should be aiming for a minimum of 25% female board member representation by 2015.
- FTSE 350 companies should be setting their own, challenging targets and that these targets should be announced within the next six months (by September 2011).
- Companies should fully disclose the number of women sitting on their boards and working in their organisations as a whole.
- Investors should pay close attention to the report’s recommendations when considering re-appointments to a company board.
- Companies should periodically advertise non-executive board positions to encourage greater diversity in applications.
- Headhunting firms should draw up a voluntary code of practice addressing gender diversity in relation to board level appointments to FTSE 350 companies.
- The Financial Reporting Council should amend the UK Corporate Governance Code to require listed companies to establish a policy concerning boardroom diversity, including measurable objectives for implementing the policy, and disclose annually a summary of the policy and the progress made in achieving the objectives.
Further information and a copy of the full report can be found at: http://www.bis.gov.uk/policies/business-law/corporate-governance/women-on-boards