Many British boards still 'no-go areas for women'

03 October 2008

It will take more than 40 years for women to be fairly represented on FTSE company boards, according to the latest figures.

Only 12 per cent of FTSE board directors are women, an increase of one percentage point since last year, according to new research by Cranfield School of Management. At the current rate of progress, there will not be equal numbers of men and women on company boards until 2050. At the moment a quarter of FTSE boards have no women on them at all.

Speaking at a “Women as leaders” conference, organised by the Institute of Directors, deputy minister for women Barbara Follett urged companies to appoint more women to their boards.

“We have made progress. But not fast enough, and many British boardrooms are still no-go areas for women. Women are significant consumers and this should be reflected on boards. The business case for this is clear: more women can drive up efficiency, innovation and productivity,” she said.

Research from the US has shown that companies with a female chief executive or board director achieve a 10 per cent higher return on capital. A “tipping point” has also been identified, showing that when companies have three or more women on their board they are no longer seen as outsiders and are able to influence board discussions and decisions.

“There is a tipping point to accelerate progress, so I challenge businesses to increase the number of women on their boards to at least this,” said Follett.

The minister added that businesses also needed to become more family friendly and flexible to enable women to reach their potential at work.