Although the first annual progress report on the Davies Report published in March has noted an increase in the number of women on the boards of listed companies, this remains an issue which is being addressed both in the UK and in the EU. Some recent measures/ recommendations include:

  • Two changes to the UK Corporate Governance Code which will apply to listed companies for financial years beginning on or after 1 October 2012 as a result of the FRC consultation on gender diversity:
    • The annual report should include a description of the board's policy on diversity, including gender, any measurable objectives it has set for implementing the policy and progress on achieving the objectives.
    • A new supporting principle which means that evaluation of the board should include consideration of its diversity including gender as well as other factors relevant to its effectiveness.
    However, the FRC strongly encourages all companies to voluntarily apply and report on these changes with immediate effect.
  • The ABI's report on improving board effectiveness which identifies three areas including diversity (particularly gender diversity) on the board to achieve this. Its recommendations include for companies:
    • to make clear statements on the steps taken to achieve diversity in the boardroom;
    • to recognise their role in developing the potential of women throughout the corporate pipeline; and
    • wherever possible, to set and report on measurable objectives and other steps taken to promote gender and other diversity in the organisation, particularly at senior management level.
  • Vince Cable's proposals and the BIS consultation (above) also referred to the need for diversity in remuneration committees and board diversity.
  • There are a number of other initiatives being taken by organisations such as the Institute of Directors, the 30% Club and the executive search community.
  • The European Commission has launched a consultation on gender imbalance in corporate boards in the EU which is open until 28 May. The Commission has also called on publicly listed EU companies to sign a pledge to increase the presence of women on corporate boards to 30% by 2015 and 40% by 2020.

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