Women fill boardrooms but miss top jobs in British firms

In the United Kingdom, the 2024 UK Board Index published by Spencer Stuart indicates progress in female representation within senior board roles, showing an increase from 60 percent to 71 percent of boards having at least one woman in top roles, including chair, CEO, CFO, or senior independent director (SID). However, the majority of these women occupy less influential positions, primarily as SIDs or senior non-executive directors, raising questions about genuine advancement in leadership roles. Although efforts to encourage ethnic diversity have been made, the representation of directors from minority ethnic backgrounds remains stagnant, with merely 12.5 percent of all directors in this category, and only 4 percent of new directors appointed over the last year being from an ethnic minority background. The Parker Review initially set a target for FTSE100 boards to include at least one director from an ethnic minority background. While this target was largely met, the results suggest a prevailing 'one and done' mentality, as companies have failed to establish deeper commitments to diversity beyond fulfilling basic targets. The reluctance to move beyond traditional, homogeneous board configurations is further illustrated by the tendency of boards to appoint older directors, with 94 percent of newly appointed non-executive directors over the age of 50, thus stalling potential advancements for younger and more diverse candidates. This situation arises as companies cite limited talent pools for women executives and individuals from ethnic minorities, suggesting that structural issues in the corporate workforce hinder progress. Without a significant increase in the number of qualified candidates, the slow changes in board diversity may persist. Critics argue that unless businesses adopt a more proactive approach and move away from traditional practices, the situation may not improve significantly in the near future. In light of these findings, the report highlights the importance of continuous efforts to promote gender and ethnic diversity at all levels within organizations rather than simply focusing on initial targets without a long-term strategy. As debates around corporate governance and representation remain at the forefront, many are calling for companies to re-evaluate their strategies and commit to sustainable changes that extend beyond compliance with current standards.