Boardroom diversity takes backwards step

Gender diversity among Britain’s biggest listed companies declined over the past year, despite evidence a higher proportion of female executives could boost profits.

The annual Women Count report by The Pipeline, which delivers female leadership programmes, said the number of FTSE 350 companies with no women on their executive committee increased since 2016, with eight more firms operating with all-male boards.

It also found the proportion of female executives across those firms stayed the same at only 16%, while 65 of 791 executive directors were women – totalling less than 10%.

It means the majority of UK-listed firms are failing to reap the financial benefits of greater gender diversity.

The Pipeline said companies with executive committees that are at least 25% female see net profit margins nearly double compared with those with no women in leadership positions.

Pipeline co-founder Lorna Fitzsimons said: “With agendas dominated by Brexit, the focus on gender diversity at senior levels has been slipping.

“Women Count shows there is an increase in profit for companies who have over 25% women on their executive committees.

“In this post Brexit era, can this return be ignored by other companies?”

The retail sector was singled out as being “very successful” at appointing women to executive roles, with half of firms boasting committees that are at least 25% female.