Frequently Asked Questions (FAQs)
1. What is the FTSE Women Leaders Review?
The FTSE Women Leaders Review (the Review) is an independent review body, supported by Government, which builds on the excellent work of the Davies Review & Hampton-Alexander Review to increase the number of women on FTSE 350 & the largest private company boards, with an important additional focus to improve women’s representation in senior leadership positions. Find out more and view previous reports at www.ftsewomenleaders.com.
2. Who Chairs the Review?
This phase of the Review has two new Co-Chairs, who were appointed in April 2022. They are Penny James, CEO of Direct Line Group and Nimesh Patel, CFO at Spirax-Sarco Engineering plc.
3. Who runs the Review and how does it operate?
The Review team is led by the Chief Executive, Denise Wilson on a day-to-day basis. The team comprises of corporate sponsors (KPMG and Lloyds Banking Group) and other business representatives, with the Government providing Secretariat support and policy guidance from the Department of BEIS and data analysis and further policy guidance from the Government Equalities Office.
The Review is governed by a Steering Group made up of experienced business members, and an Advisory Panel of relevant business organisations that meets periodically.
Key dates of the Review
4. What are the Recommendations for the Review?
The FTSE Women Leaders Review announced Four New Recommendations in February 2022, including higher targets and extending the scope to 50 of the largest private companies. They are as follows:
- The voluntary target for FTSE350 Boards & for FTSE 350 Leadership teams is increased to a minimum of 40% women’s representation by the end of 2025.
- FTSE 350 companies should have at least one woman in the Chair, Senior Independent Director role on the Board and/or one woman in the Chief Executive Officer or Finance Director role by the end of 2025.
- Key stakeholders should continue to set best-practice guidelines or use alternative mechanisms to encourage any FTSE 350 Board that has not yet achieved the previous 33% target for the end of 2020, to do so.
- The scope of the Review is extended beyond FTSE 350 companies to include the largest 50 private companies in the UK.
5. How did you determine the list of Top 50 of the largest private companies?
The FTSE Women Leaders Review has determined the criteria for the Top 50 list of the largest private companies to be those companies that have an annual turnover in excess of £1 billion and an employee workforce in excess of 4000 employees. In addition, the company needs to be headquartered in the UK, with neither the company, nor the parent organisation listed on any UK or overseas stock exchange. The company may also make a significant contribution to UK business and the economy and/or have a significant UK consumer profile.
6. Why is the criteria for the in-scope large private companies different than for companies under the FTSE?
The constituent list of companies in the FTSE 350 index is determined by the size of Market Capital and other considerations, and is updated quarterly by the London Stock Exchange. There is no such equivalent list for private companies in the UK. The criteria applied to determine the Top 50 list ensures that those companies included in the extended scope reflect those which have a significant role to play in British Business.
7. When will the next report be published?
This year’s report will be made public in February 2023.
8. What is your definition of Executive Committee?
We anticipate most companies will have an Executive Committee or similarly named organisational structure. For those companies that do not, it should be the nearest equivalent and senior-most executive or managerial governing body that sits below the board, this will often be chaired by the CEO or in the absence of this, the collective of employees who directly report to the CEO. This should exclude all administrative and support staff. From data gathered in previous years the average size of a FTSE 100 Executive Committee is 10 members. These are typically slightly smaller in FTSE 250 companies.
9. What is your definition of Direct Reports to the Executive Committee?
Direct Reports are employees in a direct reporting line to members of the Executive Committee or the nearest equivalent. This should exclude administrative and support staff. From data gathered last year, the average size of a FTSE 100 Direct Report population is 80 employees. These are typically slightly smaller in FTSE 250 companies.
10. Is this the same as the new Gender Pay Gap (GPG) reporting requirements?
No, this is an entirely separate, voluntary request made by the independent FTSE Women Leaders Review, supported by the Department of Business, Energy and Industrial Strategy and the Government Equalities Office. Together we request FTSE 350 companies and the largest 50 private companies to submit Leadership Gender Data on the gender representation on the Executive Committee and Direct Reports to the Executive Committee.
Mandatory GPG reporting https://genderpaygap.campaign.gov.uk/ is a legislative requirement that came into force in April 2017 requiring employers with 250 employees or more, to publish a range of Gender Pay Gap information by 30 March for the public sector and 4 April for the private and voluntary sector.
Analysis of FTSE companies’ gender pay gap reports, shows there is a significant gap in the earnings opportunity of men and women, largely as a result of too few women in higher paid executive or leadership roles and too many women occupying lower paid and lower grade roles.
The FTSE Women Leaders Review’s primary purpose is to increase the number of women on FTSE 350 boards and in executive and leadership roles, ensuring equal opportunity for both men and women and as such significantly contributing to closing the gender pay gap.
11. Is this the same as the new FCA Listing Rules reporting requirements?
No, this is an entirely separate, voluntary request made by the independent FTSE Women Leaders Review, supported by the Department of Business, Energy and Industrial Strategy and the Government Equalities Office. Together we request FTSE 350 companies and 50 of the largest private companies to submit Leadership Gender Data on the gender representation on the Executive Committee and Direct Reports to the Executive Committee.
In April 2022, the FCA finalised rules requiring listed companies to report information and disclose against targets on the representation of women and ethnic minorities on their boards and executive management, making it easier for investors to see the diversity of their senior leadership teams. The rules will apply to listed companies for financial accounting periods starting from 1 April 2022.
The FCA’s approach sets positive diversity targets for listed companies. If they cannot meet them, they need to explain why not. This approach allows flexibility for smaller firms or those based overseas. The rules also allow companies to decide how best to collect data from employees to show they are meeting the targets.
The FTSE Women Leaders Review’s primary purpose is to increase the number of women on FTSE 350 & largest private company boards and in executive and leadership roles, ensuring equal opportunity for both men and women.
If you have any further questions please contact the FTSE Women Leaders Review team at email@example.com