July 31, 2020
A new report observes that the UK is at risk of having fewer female leaders despite finding that FTSE 350 companies with more than 33% female executives have a net profit margin over 10 times greater than companies with no women at that level.
The report, authored by Pipeline, further found that women CEOs are critical to driving gender diversity at senior levels. Companies in the FTSE 350 led by women have an average one in three women on their executive committees, which falls to an average of one in five for companies led by men.
The report highlights that the UK is at risk of going backwards on female leaders despite the benefits of women on the executive board. In 2020, there are just 13 women CEOs of FTSE 350 companies—a mere 5% of company leaders. On April 17 of this year, there were more CEOs named Peter (6) than there were women (5) CEOs.
“In Germany,” Pipeline’s co-founders note, “there are long-standing quotas for numbers of women in non-executive roles on company boards, and government ministers are indicating they are now prepared to go further, with legislation being proposed to extend a similar requirement to executive committee positions. British business should take note.”