Women Count
Since 2016, The Pipeline has conducted research annually into the FTSE 350 to analyse the state of gender diversity at executive and board level. The Women Count series is the only study which reviews the role, value and number of women executives in the FTSE 350. The data was gathered through a mixed-methods approach examining company websites, annual and other reports and direct contact with companies.
If Lehman Brothers had been Lehman Sisters, would they have precipitated the same credit crunch and subsequent banking crisis? Having men and women at the top table makes Boards and Executive Committees smarter and leads to better decision making.
Business Performance is maximised when women are promoted
- In 2019 FTSE 350 companies with 25% or more women on their executive committees achieved an impressive 16% net profit margin, 10% more than businesses without a single woman on their executive committee.
- Companies with no women on their executive committees only achieved a net profit margin (NPM) of ^% in 2019, a further fall from the 8.9% NPM seen in 2018. Without women in key positions, these companies are dropping even further behind their competitors.
The percentage of FTSE 350 Executive Committees is low
- A mere 17.1% of FTSE 350 executive committee memebers are women, a tiny 0.8% increase on 2018.
- At the current rate of progress, it will take nearly 70 years before FTSE 350 executive committees achieve full gender balance. Since 2016 the number of women executive members.
Across the globe, it’s still a man’s world
Women are almost non-existent at the most senior levels of major companies in many countries around the world. For the first time, Women Count analysed domestic listings in different nations to compare international performance, and the result is concerning. There was not a single woman CEO on the German (DAX 30) or Indian (Nifty 50). While China (SSE 50), Hong Kong (HS I50), the USA (Dow 30), Spain (IBEX 35) and France (CAC 40) have only one woman CEO each.
Diversity and inclusion should not simply be a target and a page in the annual report, it’s vital for the success of the business and when the Board and Executive Committee support that, it massively enables and accelerates the chances of progress. I am proud of what we have achieved so far but we need to do more to tackle the gap. It’s not only the right thing to do, but it will make for a better and more successful business.
Hampton-Alexander Review 2020 facts…
- 42%of NEDs are women
- 14%female execs on main board
- 25%female execs on exec comms
- 72%of all women’s places on exec comm are in HRD roles
Hampton-Alexander Review 2018 facts…
- 12Only 12 women CEOs run FTSE 350 companies, down from 15 in 2017
- 50There are still 50 all-male executive committees across the FTSE 350
- 22The number of women in FTSE 350 Chair roles remains flat at 22
- 30%Women on FTSE 100 boards has exceeded 30% for the first time
Higher return on Equity by 47% between global companies with the most women on their executive committees and those with none
More from McKinsey & Company’s findings…
Delivering Through Diversity, January 2018
Women in the Workplace 2017, October 2017
Women Matter: Ten years of insights on gender diversity, October 2017
The power of parity: Advancing women’s equality in the United Kingdom, September 2016
Accenture’s findings…
Getting to Equal 2018: Creating a culture where everyone thrives, March 2018
Getting to Equal, September 2017
Getting To Equal: How Digital is Helping Close the Gender Gap at Work, June 2016
Harvard Business Review’s findings…
Research: Women Ask for Raises as Often as Men, but Are Less Likely to Get Them, June 2018
A Study Used Sensors to Show That Men and Women Are Treated Differently at Work, October 2017
Why Men Still Get More Promotions Than Women, September 2010
Gender Themes
Profit margins are almost DOUBLE in FTSE 350 Executive Committees with at least 25% women
The Pipeline Publications
Important new data on women…
Gender Diversity – After the crisis, don’t fall back!
Improving BAME Diversity – Here’s What Works
The age of ignoring women in business is over. If firms want to thrive post-lockdown, they’ll put them on top
Maintaining diversity during an economic crisis.
Let’s Kick the Unconscious Bias Training (UBT) Addiction and Create Sustainable Diversity Instead.
