FTSE Companies: Gender Balance

Baroness Finn Excerpts

Wednesday 8th March 2017 Lords Chamber

Asked by

[Baroness Finn]

To ask Her Majesty’s Government what progress has been made by the Hampton-Alexander review on increasing the gender balance in FTSE companies.

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, since 2010, the number of women on FTSE 350 boards has more than doubled, and there are now only 11 all-male boards. Last November, the government-commissioned, business-led Hampton-Alexander review published its first report, focused on senior executive positions in FTSE companies. The Government support the challenging targets for 33% of senior leadership positions in the FTSE 100 and 33% of FTSE 350 board directors to be women by 2020.

[Baroness Finn (Con)]

Does my noble friend agree that the private sector has much to learn from the pioneering work we led in the Cabinet Office in the coalition Government, when the proportion of women newly appointed to the boards of public bodies rose from 36% to over 48% by 2015? The key barrier that we broke down was an excessive insistence on previous track record and experience in similar roles, which meant the same people being constantly recycled from one public body to another. I am told the same constraints often operate in the private sector. Will my noble friend explore whether replacing the requirement to show a lengthy track record with an insistence on talent and capability could achieve the same breakthrough in the private sector?

[Baroness Williams of Trafford]

My noble friend makes a very valid point, and I congratulate her on her extensive work on modernising and increasing diversity in the public appointments system. During the Davies review, the Government launched a code of conduct for executive search firms, which required signatories to ensure that significant weight is given to relevant skills, competencies and personal capabilities, rather than just a narrow focus on career experience. The Hampton-Alexander review continues a focus on recruitment: the fifth recommendation in its first report is for search firms to redouble their efforts and consider extending the code of conduct to include recruitment to senior executive roles.