One third of UK FTSE 100 companies’ board seats are now held by women, ten months ahead of the December 2020 target, according to research from the Hampton-Alexander Review.
As part of the strengthened UK Corporate Governance Code, the UK’s Financial Reporting Council (FRC) expects companies to clearly set out how they plan to develop their diversity pipeline with improved reporting, including progress towards any measurable targets.
In a recent review of early adopters of the Code, the FRC found too many companies had limited reporting on diversity, which included how they plan to tackle the lack of women in senior leadership positions.
FRC CEO Jon Thompson said: “Successful and sustainable businesses should reflect the views of shareholders and wider society, with an understanding of the value greater diversity brings at both board level and throughout the business.
“Given the clear benefits greater diversity brings we expect to see improved reporting going forward to meet the Hampton-Alexander targets.”
UK Business Secretary Andrea Leadsom said: “The Hampton-Alexander Review has done fantastic work. But it’s clear that women continue to face barriers to success, whether that’s through promotion to key roles or how they are treated by colleagues.
“Businesses must do more to tackle these issues and we will support them in doing so, including through our world leading reforms to workplace rights.”