Report Shows Just 12 Female CEOs in the FTSE 350

The rate of change at the top of some of the biggest companies in the world remains glacial, despite the fact that the tide is turning and diversity, equity, and inclusion (D,E&I) are moving up on the agenda.

This is supported by The Pipeline’s most recent report, Women Count 2022. This report, which analyses gender equality at the top of FTSE 350 firms, is in its eighth generation.

Only 4% (or 12) of the companies in the FTSE 350 have female CEOs, with the remaining 96% being male. This is an increase of four since 2021, including Jennie Daly, the new CEO of Taylor Wimpey in the FTSE 100.

In fact, there are more CEOs named John than female CEOs in the FTSE 250 (where 97% of CEOs are men).

In addition, men make up three out of every four members of the FTSE 350 executive committees. There are 610 women on executive committees out of a total of 2,358 executives, and 25 companies have no women at all.

According to The Women Count 2022, there has only been a 1% increase in the proportion of female CFOs in the past year, making CFOs the most popular stepping stone to CEO, 82% male.

Only men make up 70% of the main corporate boards and 10% of the executive committees on the FTSE 350 index. No women work in profit and loss roles at nearly half of the FTSE 350 companies, but no men do either.

The Business Benefits of Female Leadership

This is a dismal portrayal, but according to Lorna Fitzsimons and Margaret McDonagh, co-founders of Pipeline and authors of the Women Count 2022, “the tragedy is not just for individual women who are barred from reaching their full potential.”

“The true tragedy is that companies are excluding themselves from a talent pool and opportunities for expansion. Businesses that have voices from a variety of backgrounds, including gender, ethnicity, and class, at the top perform better.”

According to the study, the FTSE 350 businesses with the worst records for gender equality in leadership would generate £58 billion in pre-tax profit if women made up more than a third of their executive committees.

In fact, increasing the number of women in senior roles across the FTSE 350 would generate an average pre-tax profit of £900 million for each company.

Additionally, the 25 businesses with no women on their executive committees would see a 14.6% rise in pre-tax profit, which translates to £6.8 billion for the UK economy, even if they moved to merely having 25% female representation on their executive committees.

A gender balance on the FTSE 350 executive committees could increase the UK’s GDP by 2.5%. Given the dire financial circumstances the UK is currently in, this would be welcomed.

Our message is straightforward: hire, keep, and promote more women. Take a hammer to the glass ceiling in your company if you want to succeed. Fitzsimons and McDonagh of The Pipeline said, “Don’t just speak about it; do it.”

“The good news is that when businesses make the required adjustments to promote gender equality, they frequently reap the rewards right away.”

Businesses should act immediately, and when they do, we will support them along the way.

The study offers a few suggestions for improvement. First, CEOs should own and drive action on gender equality in leadership, regardless of their gender. Success requires male allies, but only if they are sincere.

Female CEOs are four times more likely to appoint female executive directors to their board, according to Women Count 2022. Therefore, male CEOs need to take the initiative and make sure the road to the top is level.

The second step is to define objectives and goals while making sure they are genuine and accountable. This inspires activity throughout the entire company.

The last need is that inappropriate behaviour must not be tolerated. Fortunately, the trend is turning, and workers and investors anticipate businesses to support and champion D,E&I at work.

Those who don’t do this are already having difficulties in the “Great Resignation,” and if they don’t do anything about it soon, their problems will only get worse.