The government has recommended that FTSE 100 companies should aim to have a minimum of 25 per cent. female representation on their boards of directors by 2015 but has stopped short of imposing quotas to enforce such measures.

Leading an inquiry into male dominance of UK boardrooms, Lord Davies has called for radical change. Women account for only 12.5 per cent. of directors of FTSE 100 companies, and only 7.8 per cent. of board posts are held by women in the FTSE 250. At the current rate, it would take more than 70 years to achieve gender-balanced boardrooms in the UK's largest companies. The review presents practical recommendations to address this imbalance.

Lord Davies' 10 recommendations

  1. FTSE 350 companies should set out the percentage of women they aim to have on their boards. FTSE 100 boards should aim for a minimum of 25 per cent. female representation by 2015.

  2. Quoted companies should be required to disclose the nature of the role of women in their organisation.

  3. UK Corporate Governance Code should require listed companies to establish a policy concerning boardroom diversity.

  4. Chairman to sign a charter in support of the recommendations.

  5. Corporate Governance Code to require disclosure of board appointment process in annual accounts.

  6. Investors to have responsibility to monitor implementation of recommendations 1-5 above.

  7. Companies to periodically advertise non-executive positions to encourage diversity in applications.

  8. Executive search firms should draw up a Voluntary Code of Conduct relating to appointments to FTSE 350 companies.

  9. Female appointments should considered from both inside and outside the corporate sector.

  10. Steering board to meet every six months to report on progress of recommendations.

Fundamentally, Lord Davies rejected the introduction of quotas in favour of voluntary targets. He warned however that the "government must reserve the right to introduce more prescriptive alternatives if the recommended business-led approach does not achieve significant change".

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