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Report says ‘old boys’ network’ still keeping women out of boardrooms

(Getty Images)
(Getty Images)

A study by the Equality and Human Rights Commission (EHRC) showed that headline progress in achieving a target of 25% of company boards made up of women was “masking” the reality.

Three out of five firms in the FTSE 350 were failing to meet the target and fewer than half increased female board representation in recent years.

A third of companies relied on the personal networks of current board members to find new candidates, so the old boys’ network was still being widely used, said the report.

The diversity of candidates was also being limited by virtually no open advertising of board positions, said the Commission.

Progress has been made on the 25% target for top firms set last year by Lord Davies in his Government-backed report into gender diversity in boardrooms, but the Commission said there was “inexcusable and unacceptable” variation within companies.

The position was worse for executive posts, with almost three out of four FTSE 100 companies and 90% of FTSE 250 firms having no women in the positions.

Laura Carstensen, Equality and Human Rights Commissioner, said: “Despite welcome progress and vital work by Lord Davies, our top boards still remain blatantly male and white, with inexcusable and unacceptable discrepancies between companies.

“The good work of a forward thinking minority masks that many top businesses are still only paying lip service to improving the representation of women on boards.

“The best companies are showing that having talented women on their boards is boosting both performance and fairness.

“Unfortunately, the recruitment practices of too many businesses still remain trapped in permafrost and that’s holding back women and ultimately the companies themselves.

“The recruitment process to the boards of Britain’s top companies remains shadowy and opaque and is acting as a barrier to unleashing female talent.”

The commission has made a series of recommendations, including stopping the use of personal networks to make appointments.


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