Spencer Stuart: The Rise of the Female Chairman

New research from Spencer Stuart, the executive search and leadership consulting firm, shows a significant increase in women taking the helm of FTSE 150 boards over the last two years. The next real diversity challenge is black, Asian and minority ethnic (BAME) representation, with such directors forming a tiny proportion of the UK’s FTSE 150 board members.

The Spencer Stuart 2015 UK Board Index is a comprehensive review of governance practice in the largest 150 companies in the FTSE rankings, providing a valuable indication of the state of boardroom health during 2014-15. The Board Index is supplemented by further research into gender diversity on the executive committees of the FTSE 100.

There have never been more women at the helm of FTSE 150 boards. Seven female chairmen leading the UK’s largest companies’ boards represents an increase of 350% compared with 2013, when there were only two female chairmen. If the current rate were to continue, there would be 25 female chairmen in the FTSE 150 by 2017. This progress is supported by a host of female chairmen at prominent organisations, such as Baroness Vadera at Santander UK and Dame Colette Bowe at the Banking Standards Board.

On the face of it, there has been solid progress in female board membership over the last year, with the top tier of the FTSE meeting Lord Davies’ target of 25% female representation on boards in July. But the 2015 UK Board Index suggests that the supply of future directorial talent will be constrained by the small number of women rising to the top of the executive ranks. At 29.5%, the proportion of female non-executives in the FTSE 100 is far higher than the proportion of female executive committee members (17.2%).

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