Just ahead of International Women's Day this year, the FTSE Women Leaders Review (the Review) published its second report on gender balance in FTSE leadership. The timing of the publication seems fitting as, overall, the results indicate that the momentum to increase representation of women on UK boards and in leadership roles is, for now, holding strong. The standout success is, undoubtedly, the FTSE 350 companies achieving 40% women on boards, three years ahead of the 2025 deadline set as part of the Review's recommendations in 2021.

What is the Review?

The Review, launched in 2021, is an independent five-year initiative supported by the UK government which is aimed at improving the representation of women on the boards, and in the leadership teams, of the UK's biggest companies. The initiative is business-led and voluntary, which many believe is the reason why we are seeing sustained progress in increasing gender equality at these levels in UK business.

The Review is published annually and provides gender data on the make-up of board and leadership roles across the FTSE 350 companies and, for the first time, this year's report also includes data from 50 of the largest private companies in the UK.

We have taken a look at the findings of the Review's second report and what they actually mean for the representation of women in leading UK businesses.

Key findings

As of 11 January 2023:

FTSE 100

• Women hold 40.5% of board positions (up from 39.1% in 2021).
• 57 companies have already met or exceeded the new 40% target for women on boards by 2025 (as recommended in the Review), with 43 companies still to achieve this.
• Seven companies have not yet achieved the 33% target of women on boards by 2020. This target was set in 2015 under the Review's predecessor, the Hampton-Alexander and Davies Reviews (the 2020 Target).

FTSE 250

• Women hold 40.1% of board positions (an increase of 36.8% from 2021).
• 137 companies have met the Review's current 40% target for women on boards by 2025 and 113 companies are yet to achieve this.
• 24 companies have not yet met the 2020 Target of 33%.
• 10 companies, previously with 33% women or more on their boards, have fallen below the 2020 Target this year.

FTSE 350

• 40.2% of all FTSE 350 board positions are held by women, meaning the Review's target of 40% women on boards by 2025 has been achieved.
• 55 women now hold the Chair of the Board role – this is almost one in six FTSE 350 companies.
• 130 women are senior independent directors – this is more than one in three FTSE 350 companies.
• 21 women are Chief Executive Officers.
• No all-male boards, and only one company with only one woman on the board.
• Internationally, the UK ranks second out of 11 countries in terms of female representation on boards. France tops the table with 44%.

50 largest UK private companies

• Representation of women on boards was on average 31.8%.
• 19 boards are all-male or have only one woman.
• One third have 40% women, or greater, on their boards. However, a little more than half had well below 33%.
• Only 32% of executive directors are women.

Takeaway

Overall, these are encouraging statistics and they indicate businesses are recognising that achieving a more diverse and gender-balanced board is no longer just about "doing the right thing". There is an increasing acknowledgement of the positive impact that gender equality at the top tables of business can have, such as bringing different perspectives, diverse energy and fresh thinking to key commercial strategy and decision-making.

While the latest data from the Review is promising, not least because the driving force behind the changes is the voluntary efforts of businesses, there is a consensus that there is still room for greater change and progress. UK businesses have many competing priorities to juggle during these current uncertain economic times. However, it is important that the momentum which has driven this year's results is sustained and that achieving gender equality does not slip down the priority list.

That said, it is equally important that we celebrate positive change. Achieving 40% women on boards of the FTSE 350 is clearly worthy of celebration, particularly since it was as recently as 2011 when 152 of the FTSE 350 companies had no women on their boards at all.