Lord Davies’ review, Women in the Boardroom, was published on 24th February and calls for firms to adopt voluntary targets in order to achieve a minimum of 25% female representation on boards by 2015.
I welcome the content of the report. It is very good news that gender inequality in the boardroom is now firmly on the Government’s radar and British firms must recognise that they should take action to change the established perceptions of what a board member looks like. The scale of the requirement is demonstrated by the fact that women constitute only 12.5% of FTSE 100 directors in 2010.
The report contains interesting facts about female directors in other countries such as Norway, Spain and Iceland where they already have quotas. France and Holland are considering legislation to introduce them and UK firms now have an opportunity to meet the report’s objectives before the Government decides to legislate here.
I believe it is imperative that British firms current organisational culture should become more flexible and those involved in the governance of our firms should challenge the established views of the required skill sets, background and experiences of board members. I look forward to the prospect of a vibrant and diverse new generation of board members which will ultimately lead to more sustainable growth for British companies.