Where we are now

The Hampton-Alexander Review (the Review), which is an independent, business-led initiative supported by Government, builds on the success of its predecessor, the Davies Review. In 2016 the Review set five key Recommendations aimed at increasing the number of women in leadership positions of FTSE 350 companies. This third annual report assesses progress, shines a spotlight on emerging best practice and current challenges.

Ambition and Targets

The scope of the Review captures over 23,000 leadership roles in 350 of Britain’s largest companies. It covers the board and extends down two leadership layers below the board, making the UK’s voluntary approach to improving women’s representation at the top table, arguably the biggest and most ambitious of any country. The Recommendations called for action from all stakeholders and importantly included a target of 33% representation of women on FTSE 350 Boards and FTSE 350 Executive Committee and the Direct Reports to Executive Committee by the end of 2020.

Executive Committee and Direct Reports

The FTSE 100, following a year of minimal progress in 2017 has seen the number of women on the Combined Executive Committee and Direct Reports increase to 27% in 2018, up from 25.2% last year. The total number of positions has increased this year, as has the turnover and the appointment rate for women, albeit the appointment rate is still heavily skewed with around 65% of all newly available roles going to men. Burberry Group has the highest representation of women at 58%, followed by Next Plc and Marks & Spencer at 46%. Forty FTSE 100 have already met the 33% target - or are well on their way to doing so by 2020. This leaves 591 companies with work to do, some significantly so. The FTSE 250 has seen a slower year with the number of women on the Combined Executive Committee and Direct Reports increasing marginally to 24.9% in 2018, up from 24% last year.

The total number of positions has decreased this year with turnover and the appointment rate for women both slightly up. Again the appointment rate is skewed with 78% of appointments to Executive Committees going to men and 69% of newly available roles in the Direct Reports going to men. Shaftesbury Group has the highest representation of women at 54%, followed by On the Beach Plc and Ted Baker at 48%. Around seventy companies in the FTSE 250 have already met the 33% target - or are well on their way to doing so by 2020, which leaves well over a hundred companies with work to do.

The gap between those companies working hard to improve gender equality in their leadership teams and those companies who are doing very little, has never been more obvious. The findings in this report celebrate the efforts of many, at the same time as providing a ‘wake-up’ call to those CEOs and leaders still to take action. They also enable employees, consumers and other stakeholders - probably for the first time, to make fact-based choices aligned to their expectations and values.

Women on Boards

The FTSE 100 has progressed more in line with expectations this year with the number of women on FTSE 100 Boards at 30.2% in 2018, up from 27.7% last year. Next, Rightmove, Taylor Wimpey and Hargreaves Lansdown Plc all have 50% women on their boards and top the rankings. There are now seventy-six FTSE 100 companies with three or more women on their boards.

The FTSE 250 has also moved forward in the year with women’s representation at 24.9% in 2018, up from 22.8% last year. Ascential Plc has the highest representation of women at 57%, followed by Virgin Money, Countryside Properties and three Investment Trusts all at 50%. There are now sixty-two FTSE 250 companies with three or more women on their boards.

The number of All-Male boards is down to 5 from 10 last year, still 5 too many and women in CEOs or Chair roles have barely moved. As concerning are the 75 companies in the FTSE 350 with only one woman on their board. At this evolved stage in the UK’s journey, this is disappointing.

Outlook

If progress continues at a similar rate, the FTSE 100 is ‘on track’ to achieve the 33% target for Women on Boards by 2020. Elsewhere a step change is needed in pace, which means half of all available appointments in the next two years - both Boards and the Combined Executive Committee and Direct Reports, need to go to women to achieve the 33% target.

We know the voice of the leader and their courage, matters more than anything else. Closely followed by a robust plan of action and sustained effort to bring about lasting change. In this report we celebrate the many stakeholders that have taken robust action in support of the UK’s voluntary journey, and call on others to play their part.

FTSE 350 Company Rankings as at October 2018

FTSE 100 Rankings

FTSE 250 Rankings