Executive Women in the Workplace
Context: 82.7% of the directors of the UK’s top 100 companies are male;[1]9% of CFOs are women;[2] andfor CEOs the figure is just 4%[3] - in total, only 6.6% of executive directors are women.[4] There remain 8 all-male boards among the FTSE 100 companies. Clearly there are issues with executive women in the workplace. The prospect of mandatory quotas of 40%, as already imposed in France, Italy, Norway, and elsewhere, may yet be put back on the European Commission’s agenda, despite being initially dropped. In the UK, Lord Davies’ independent report in 2011 raised awareness of the board level problem, and also found the “pipeline of talent” through companiesup to board level to be “leaking”.[5]
Female board participation has accelerated since Lord Davies’ report, according to his2012update,[6]and an increasing body of research demonstrates the higher performance of boards with significant female presence.[7] However, women still struggle to reach the very top: 55% of non-executive directors appointed since 1st March 2012 were women, but 0% of executive directors.[8] Moreover, progress beyond the top 100 companies has been limited: 88.7% of FTSE 250 directors are male and 94 FTSE 250 boards remain all-male.[9]
Proposal: Important work has already been undertaken and it is not the intention of this proposal to duplicate existing research. The Executive Women in the Workplace inquiry will investigate the barriers women face in reaching senior executive positions, leading to director level, and how they can be addressed.
A panel of Conservative MPs and Peers will study oral and/or written evidence from companies, executive search firms, investment firms, and campaign groups. It is hoped that the project will highlight best practice among UK and international companies and will add to our understanding of the challenges which executive women in the workforce face. The panel will also make representations to Government on any changes to policy which might be required.
Call for Evidence:Suggested topics for panel to put to witnesses, or if required to form a call for written evidence.
- Progress since Lord Davies’ report: will the current rate of female appointments be sustained?
- Quotas: how successful have quotas been in Norway, France, etc. and what are their costs and benefits? Are other solutions preferable and sufficient, such as pressure from shareholders and/or Government,improved awareness of how companies themselves benefit, and quotas within the stages of the selection process?
- Executive positions: why are women making it to non-executive but not executive positions? How are the complex barriers surmountable? What more needs to happen for more women to be appointed chairmen, CFOs, and CEOs?
- Pipelines: McKinsey advocate a 3-part model to foster pipelines.[10] From your experience what constitutesbest practice in terms of:
- Management commitment
- Women’s development programmes
- “Enablers”(HR support, understanding and tracking inequalities, etc.)?
How can the adoption of successful initiatives be encouraged both within and between companies?
Launch:A panel of Conservative MPs and Lords will launch the project at a public press conference on Tuesday 13th November. They will then write to the CEOs of potential witnesses to invite them to oral evidence sessions. Written evidence may also be requested.
Timings:
Launch: Tuesday 13th November
Oral Evidence Sessions: week beginning Monday 21st January 2013
Publication of Findings: Spring 2013
[1] Data as of 4th September 2012, from BoardWatch, Professional Boards Forum
[2]Ibid.
[3]Ibid.
[4]Ibid.
[5]Lord Davies, “Women on Boards 2011”, p.16
[6]Lord Davies, “Women on Boards: One Year On”, see also the Cranfield Female FTSE Board Report 2012
[7]Credit Suisse Research Institute 2012, Catalyst 2007, McKinsey 2007, etc.
[8]BoardWatch
[9]Ibid.
[10]McKinsey, “Women Matter 2012: Making the Breakthrough”, p.9