All-male boards might be a thing of the past among FTSE 100 companies, but alarmingly, they are on the rise among small firms.
Rather than making inroads in the representation of women on boards in the UK, smaller listed companies are regressing, with all-male boards becoming increasingly prevalent.
Analysis reported in the Times shows that the number of all-male boards in companies listed on the Alternative Investment Market (Aim), has jumped by 73 percent in the last year, rising from 108 companies to 187.
This contrasts with FTSE 100 firms, where males no longer dominate the boards of directors. In 2023, females took up more than two of every five board seats in the FTSE 100 Index for the first time, as shown by government data released in February 2028. This represented a significant jump from just one in eight seats in 2011. The picture was similar to the FTSE 250 index, meaning that between them, FTSE 100 and FTSE 250 businesses had achieved a 40% share of women leaders, three years ahead of the 2025 target.
On the progress, Kemi Badenoch, Business and Trade Secretary and Women & Equalities said: “I’m pleased to see that FTSE 350 companies have surpassed this target, showing that change doesn’t always require top-down interventions but can occur when everyone is pushing in the same direction.
“This progress is very welcome, and I’d urge businesses to keep up this momentum to achieve better balance in leadership positions as well as in boardrooms.”
However, recent analysis shows that smaller companies are falling behind. One explanation is that Aim companies often have more founding family members on the board, as well as a greater number of representatives from earlier supporters in private equity, which is a traditionally male-dominated sector. The research also shows that women in Aim companies were less likely to hold the chair, chief executive, finance director, and senior independent director roles.
In failing to have women on boards, companies risk missing out on the many benefits gender diversity in boardrooms brings to businesses.
The World Economic Forum’s Future of Jobs 2023 Report points to how over half of Gen X workers would not accept a role in a company without diverse leadership.
As well as attracting and retaining talent, having women on boards is said to improve firms’ strategic decision-making, and create more ethical and responsible management.
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