UK firms fail to hit gender equality targets

Britain’s 350 biggest companies are likely to fall short of a government-backed target for corporate gender equality by 2020.

Figures released on Wednesday by the Hampton-Alexander review, launched by the government in 2016 to increase gender diversity, show that FTSE 350 companies are short of the target to have 33 percent-female boardrooms.

At FTSE 100 companies, women hold 29 percent of boardroom positions, an increase from 12.5 percent in 2011, and are on track to meet the 33 percent target by 2020.

Progress has been slower in the wider FTSE 350, with women making up only 25.5 percent of all directors. To meet the target, 40 percent of all appointments made in the next two years would need to go to women.

The review named 10 companies who had failed to appoint any women to their top table two years after the 33 percent target was set.

They are Mike Ashley’s Sports Direct, Stobart Group, Baillie Gifford Japan Trust, Daejan Holdings, Herald Investment Trust, IntegraFin Holdings, JP Morgan Japanese Investment Trust, On The Beach Group, TBC Bank and Ti Fluid Systems.

Rachel Reeves, a Labour MP and chair of the business, energy and industrial strategy committee, said: “The inglorious 10 companies who still have all-male boards need to drag themselves out of the dark ages and ensure they bring in a more diverse and valuable perspective to the running of their businesses rather than running a closed club of the old boys’ network.

“Many of our biggest companies still have a long way to go to meet the 2020 goals. Progress at the board table is at snail’s pace and far too few women are taking the helm as chief executives.”

Last month, the initiative revealed the worst explanations for not appointing women to FTSE company boards, including that “they don’t fit in”, “they don’t want the hassle” and “all the good ones have already gone”.

Evidence has shown that bridging the gender pay gap could add $196 billion to the UK economy by 2025 and tackling the gender pay gap is part of the government’s modern Industrial Strategy.