Women: Board Membership

Baroness Pitkeathley Excerpts

Monday 17th June 2013 Lords Chamber

[Baroness Northover]

We are indeed pleased at the progress that is being made but the noble Baroness is absolutely right, as is the previous noble Baroness, that progress needs to continue. The Prime Minister said in February 2012 that further action has to be considered as a back-stop and Vince Cable said in April 2013 that the Government would, if necessary, adopt tougher measures. The warning is there. If there is continued progress, that is great. If not, there are sticks.

[Baroness Pitkeathley]

Does the noble Baroness agree that one of the problems is that the boards are not sufficiently flexible in what they see as the requisite experience for serving on boards? For example, many women who hold senior positions in the voluntary and charitable sector are never considered because their experience is not considered relevant.

[Baroness Northover]

The noble Baroness is right, and boards need to take a wider view in terms of the experience and expertise that are there. I should like to quote one of the remaining FTSE 100 companies, Melrose, which still has an all-male board. It is,

“a leading British-based investment company specialising in the acquisition and performance improvement of underperforming businesses”.

There are no women on its board. How is it to ensure that companies are geared to the 21st century if it is so outdated in its own approach?