Outdated, old boys’ networks are still being used to recruit board members, which is keeping the representation of women in such positions at unacceptably low levels.
That was the outcome of an Equality and Human Right Commission inquiry published today (23 March).
Following last October’s Davis Review, which reported progress in the government’s goal of achieving 25% women across the boards of Britain’s biggest companies, the EHRC inquiry paints a rather more sombre picture.
It found that only 47% of companies had increased their female board representation, with almost a third reducing the size of their board rather than appointing a woman.
The picture is even more stark for executive positions, with almost three quarters of FTSE 100 companies and 90% of FTSE 250 companies having no female executive directors on their boards.
Some 32% of companies questioned by EHRC, which included several real estate firms, said that they largely relied on personal networks of current and recent board members to identify new candidates. Almost a third of those doing so did not use any other means of advertising for the post.
Just 2% of companies publicised non-executive roles on their websites, in newspapers or on social media.
The inquiry also found that job descriptions often relied on vague terms such as ‘chemistry’ and ‘fit’ rather than clearly defined skills and experience.
Laura Carstensen, Equality and Human Rights commissioner, said: “Despite welcome progress and the vital work by Lord Davies, our top boards still remain blatantly male, with inexcusable and unacceptable discrepancies between companies.”
She added: “Unfortunately the recruitment practices of too many businesses still remain trapped in permafrost and that is holding back women and ultimately the companies themselves.
“The recruitment process to the boards of Britain’s top companies remains shadowy and opaque and is acting as a barrier to unleashing female talent. Our inquiry calls for more open, fair and transparent recruitment to tackle an alarming disparity in performance across the FTSE 350.”
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