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The 2007 Female FTSE research by Cranfield School of Management also reveals that the number of female-held directorships has increased from 117 in 2006 to 123 this year, and that the proportion of women among new appointments has increased substantially over the last year. Twenty per cent of new FTSE 100 director appointments have gone to women, the highest level since the first benchmarking report was published in 2000.

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The number of women holding directorships has broken the 100 barrier for the first time, with 100 women in 123 positions.

In the Female FTSE Index, companies with the highest percentage of female board directors include in first place Sainsbury’s  - with three female non-executive directors (NEDS) making up 30 per cent of its board -, closely followed by Astrazeneca,  British Airways and ITV, all with three NEDS but slightly larger boards with women accounting for 27.3 per cent.

During the month after the data was collected British American Tobacco appointed two new female directors taking its percentage of women on the board to 30 per cent, which would put it equal first with Sainsbury.

While the proportion of female-held directorships is still low (11 per cent), the report highlights how the composition and balance of FTSE 100 boards has changed since 2000. Both the number of executive directorships and total number of directorships are at their lowest levels for seven years, while the number of non-executive positions are at their highest level – one consequence of the Higgs Review designed to encourage boardroom diversity.

It is here that women have made great progress with 110 female NEDS in 2007, compared to 60 in 2000.

Exemplary ways

Professor Susan Vinnicombe attributed this progress to a number of prominent chairmen, chief executives and women directors who have actively engaged in championing the gender diversity debate, mentored aspiring women directors and managed their boards in exemplary ways.

Last year the Female FTSE examined, for the first time, the make-up of the executive committee - the senior team chaired by the CEO -, to analyse the talent pipeline to the main board. It reported that only 53 companies had females on their executive committee, a total of 70 women. This has increased to 60 companies in 2007, with 122 women making up 16 per cent of senior executives, an increase of 40 per cent on 2006.

Report co-author Ruth Sealy from Cranfield School of Management said the increase was encouraging, but needs to be built on.

“Not only is there a substantial increase in the number of women at executive committee level, women are also employed in an increasing variety of roles on these committees. This increase brings a considerable addition to the talent pool and it will be interesting to monitor how long it takes for these women to emerge from the pipeline and into female executive director roles,” Sealy said.

Family friendly

Co-author Dr Val Singh said the value of having women in senior positions must not be underestimated.

“If companies grow their own talent, thereby increasing the range of perspectives, behaviours and solutions available at the top, this will also provide role models and inspiration to women lower down, helping retention and attracting the best new talent,” Singh added.

Minister for Women and Equality Harriet Harman said that British business at all levels must become more family friendly. She believes that this will enable men as well as women to play a more active role in their children’s lives and enable women to fulfil their potential at work. Harman said that this cultural change has to be led from the top and that it will not happen while businesses are led by men only boards.

The UK Resource Centre for Women in Science, Engineering and Technology has produced a good practice guide to inclusive boardrooms to coincide with the publication of the Female FTSE which details key recommendations for developing female talent within SET. Written by Dr Singh, it details specific practices that organisations should undertake to develop a more inclusive boardroom culture.

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Related links

• Cranfield School of Management
• Full reports