WOMENCOUNT2018 Role, Value, and Number of Female Executives in the FTSE 350 - The Pipeline
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WOMENCOUNT2018 Role, Value, and Number of Female Executives in the FTSE 350
ABOUT THE PIPELINE & THE AUTHORS
The Pipeline was established in 2012 to enable organisations to achieve their diversity goals through outstanding diagnostic tools, excellent
leadership programmes, and bespoke consultancy. We begin by providing organisations with data and insights on diversity across all groups.
Once these results are known we can help organisations achieve sustainable gender diversity by focusing on the best interventions from our
holistic range of services, including highly acclaimed executive programmes and consultancy projects.
Margaret McDonagh Lorna Fitzsimons
Co-Founder Co-Founder
Margaret McDonagh is a dynamic business woman Lorna Fitzsimons is a trusted advisor to blue chip companies and Whitehall
and member of the House of Lords. She has had on gender diversity and developing executive female talent. She is also
a successful corporate career serving as a NED a Board member of the UK Fashion Textiles Association
for both Standard Life and Spanish based (UKFT), the Greater Manchester Local Enterprise
infrastructure company Abertis -TBI (global Partnership, and a trustee of the education charity,
airports). Margaret was also the founding SHINE. Lorna is deeply committed to unlocking
Chairperson of Smart Energy GB. women’s potential at the top of corporate Britain and
realising growth in the Northern Powerhouse.
Margaret actively supports several charities,
including serving as trustee of the AFC Lorna was the Founder and Director of The Alliance
Wimbledon Foundation and is the Chairperson Project, a £150m public-private partnership
of the Orthopaedic Research & Education to bring back textile manufacturing to
Fund, which uses big data to improve the UK, and CEO at the Britain Israel
outcomes for patients. By profession, Communications and Research Centre
Margaret is a global expert in leading (BICOM). She turned BICOM into an
‘big campaigns’. She ran Labour’s internationally renowned centre of
1997 and 2001 General Election excellence. She was also a visiting Fellow
campaigns, which produced the at the Defence Academy’s Advanced
most successful results for any Research and Assessment Group, and
party in Britain’s history. a former Member of Parliament.
2 WOMENCOUNT2018
FOREWORD
In 2018-19, UK PLC cannot afford to ignore any lever of We set the target not just because extending opportunity
growth and value. And yet, as this year’s ‘Women Count’ and equality for women is the right thing to do, but because
report shows, Britain is missing out on a £13 billion gender all the evidence shows that businesses are more successful
dividend through the failure to get more women onto when they have a healthy gender balance in decision-
more executive committees and into more senior, decision- making roles.
making roles in business.
It is also clear that businesses that don’t promote women
‘Women Count 2018’ gives us the proof that having more are increasingly out of step with the British public. Younger
women on executive committees boosts profitability. It people are frank on this: they want progress on equality in
Rt Hon Nicky Morgan MP unpacks in forensic detail the status of women in FTSE 350 the workplace and, if not achieved, they will simply go and
Chair of the Treasury Select firms, the number of women on executive committees, work for companies that do prioritise gender equality. This
Committee and the correlation between female representation and should concern all who understand the essential role played
economic performance. It finds that businesses where by talented people in the competitive world of business.
July 2018 at least 25% of decision-makers are women significantly
As Michael Porter said in 2008, one of the most powerful
outperform companies where women are under-
levers we have for improving national economic
represented, or even completely absent.
performance is maximising the participation of women in
We should all be shocked that for the third year in work and business. ‘Women Count 2018’ reveals that all
succession the percentage of women on FTSE 350 executive the progress thus far has come from the appointment of
committees is flatlining at 16%, despite positive initiatives non-executive women to FTSE Boards whilst the position
and stellar contributions from many firms. The underlying of female executives on those same Boards and executive
figure of only 5% holding P&L roles really shows us where committees remains frozen.
we need to focus and how much more needs to be done.
Businesses that don’t understand the need to appoint
This lack of progress calls into serious question the more senior executive women are failing to meet their full
possibility of achieving the UK’s target of 33% by 2020 potential. I ask them to read this report and wake up to
which I set in response to the Davies Report, as Minister for reality, in their own interests and the country’s interests.
Women and Equalities in 2015.
WOMENCOUNT2018 3EXECUTIVE SUMMARY
Women Count 2018 reveals how despite numerous leaders. The granular and far-reaching analysis matters as P&L roles are springboard jobs for
government targets and corporate promises, undertaken shines an unforgiving light on the advancement to CEO.
women are still being excluded from key positions lack of progress of so many organisations,
ff 63% of companies have no women in P&L
in many of the nation’s major businesses. In this showing how it is being left up to women CEOs
roles.
crucial area, our country remains stuck in the to deliver the change we need. In 2018 despite
past, with our economy failing to achieve its full all the warm words, PR, and positive statements
Key Fact 2: Women promote women and make
potential. advocating change,
change happen
No women in P&L roles for women seeking
This is the third annual assessment of the ff Only 4% of FTSE 350 companies have women
in 63% of companies. senior executive
number, value, and roles that women hold on CEOs, yet within a year these women CEOs
opportunities,
executive committees and main boards in the have increased by 10% the average number of
corporate Britain
FTSE350. It highlights how substantial barriers female executive committee members (2.9 in
remains a largely unreformed, unfriendly, and
to the development of the nation’s best talent 2018 compared from 2.6 in 2017).
unreachable place.
continue to prevail,
ff Women CEOs have more than twice the
Representation of limiting the profitability These results are a call to action for those seeking
number of women on their executive
women is just 16%, with of leading businesses a more modern, better future for women and
committees than male CEOs.
no progress in 3 years. and hurting UK plc Britain’s businesses.
in the pocket, whilst ff Women CEOs have four times the number
also systematically THE KEY FACTS of women executives in P&L roles on their
reinforcing indefensible gaps in pay between executive committees compared to male-led
men and women. The absence of any meaningful Key Fact 1: No progress in getting more women companies (1.6 to 0.4), showing it can be done.
change to advance women into senior positions is on executive committees
not only at odds with Government aims, it is also ff Representation of women remains at only 16%, Key Fact 3: Correlation continues between
increasingly out of step with the British public, with no real progress since 2016. profitability and more women in senior roles
who want an end to this outdated, male-only ff FTSE 350
ff Staggeringly, nearly a quarter of FTSE
world. Young people are even clearer; they want 350 companies have no women on their Corporate UK is companies with no
workplaces that have a better gender balance and, executive committees. missing out on a £13bn women on their
if not delivered, they will simply take their talents gender dividend. executive committee
elsewhere. ff 95% of all P&L roles on executive only achieve an
committees in the FTSE 350 are held average 8.9% net
These results are a stark wake-up call for business by men, and just 5% by women. This profit margin. Where there are at least 25%
4 WOMENCOUNT2018women on executive committees, average net Key Fact 5: Women still hugely underrepresented ff Gender pay gaps are highest in sectors with
profit margins increase by 5%, to 13.9%. in other senior leadership positions some of the lowest numbers of women
ff 95% of Chairs of main boards are men, with executives.
ff There is a £13bn gender dividend on offer for
UK plc, if all FTSE 350 companies performed at only 5% being women. Only 6 companies in the
FTSE 100 have women Chairs. Key Fact 7: Young people demand greater gender
the same level as those with women on their
diversity at work
executive committees. ff When the Chair of the main board is a woman,
ff 62% of people aged below 35 agree that having
the average number of women on executive
Key Fact 4: Company boards – women executives a balance of men and women at all levels in
committees is 2.6, compared to 1.5 if the Chair
the workplace matters to them, decreasing to
do not break through is a man.
35% in the 65+ age group.
ff 92% of executive directors on main boards are
ff Where a woman holds any of these key
men, whereas only 8% are women, reducing ff More than half of all women of all ages believe
positions - CEO, Senior Independent Director
significantly the chance of increasing the that increasing the number of women in senior
(SID), Chair of the Remuneration Committee,
number of female CEO’s in the FTSE. roles at work would
Chair of main board 62% of people aged give them more
ff The percentage of women – the company below 35 agree that
Companies with role models to look
92% of executive executives on main boards has is likely to have a having a balance of
woman CEOs have up to. The majority
directors on flatlined between 2017 and larger number of men and women at all
a 6% lower average of young men and
main boards are 2018. women on executive levels in the workplace
median pay gap than women (16-34 yr
men, whereas committees than if matters to them
ff Astonishingly, 248 FTSE those run by men olds) hold the same
only 8% are the positions were
350 companies have no opinion.
women. held by men.
women executives on their
main board. Key Fact 6: Gender pay gaps are worse without OUR RECOMMENDATIONS
ff In most cases where there are women women executives and CEOs This report demonstrates the chronic lack of
executive directors on the main board, there ff Companies with higher numbers of women women on the executive committees of FTSE 350
is only one. Only 7 companies have 2 or more executives have lower median pay gaps. businesses. Companies need to make significant
women executive directors on the main board. changes, and fast, if they are to meet the tests set
ff Companies with women CEOs have an average
median pay gap between men and women of in the Hampton Alexander review and, as with any
11%, compared to 17.4% when the CEO is a other serious business challenge, this requires a
man. target and a plan. The following interventions offer
WOMENCOUNT2018 5EXECUTIVE SUMMARY ...continued
companies a solution to the challenge of achieving stretch their capabilities. Pipeline research tailored leadership
greater gender diversity. reveals sponsorship initiatives are more Recognise that men and development
successful than other interventions, for example and women are programmes. Women
different, and that
ONLY THE CEO CAN MAKE IT HAPPEN coaching or mentorship schemes. respond to clarity
specific interventions in job roles and
Companies take their lead from the boss and if
are needed for each. reward packages, so
organisations are to deliver true gender diversity, FOCUS ON THE EXECUTIVE organisations need
it has to start at the top. Well meaning words are COMMITTEE AND PLAN THE FUTURE to be more specific in
fine, but it is actions and behaviours that count.
Rigorous and actioned succession planning is these key areas about what they want if they are to
CEOs must step up and
vital for achieving gender diversity on executive attract and promote more women.
Companies take their treat gender diversity in
committees. Know which woman is right for
lead from the boss and the same way as other
which job and be transparent about it. Also, be
if organisations are key business issues and
clear that getting
to deliver true gender commit to targets,
more women on the
diversity, it has to create deadlines, Businesses must executive committee CONTENTS
start at the top. empower people to take the same risks is the biggest priority.
deliver, and hold the on promoting and The Count 7
Setting a transparent
organisation and appointing women as Women on executive committees 7
target for this, and
individuals to account for their performance. they do with men. Companies with women CEOs 8
by when, sends a
The relationship with company performance 9
powerful message to
JUST DO IT women everywhere Women executives on company boards 9
Too many organisations seek the perfect women that businesses are prepared to take tough action Gender and other leadership positions 10
candidate before making senior appointments. Yet to move the dial on this crucial issue. Gender Pay 11
for men it seems they are prepared to take risks. It’s Future problems for companies 11
clear, men are appointed for potential and women Conclusion 12
for attainment. This ‘attainment trap’ stops women WOMEN AND MEN AREN’T THE SAME Methodology 12
of potential getting onto executive committees. Many companies try to solve the gender gap by
At a glance 13
Businesses must take the same risks on promoting designing out bias. Don’t. Instead recognise that
and appointing women as they do with men and Appendix 1: Industry Insight 14
men and women are different, and that specific
encourage women to seek opportunities that interventions are needed for each, for example Footnotes 15
6 WOMENCOUNT2018THE COUNT
Women Count 2018 is a detailed analysis of the Companies are required to publicise their companies had no women executive committee
role of women executives for companies within the data on gender pay and this same principle members in crucial P&L roles, growing from 61%
FTSE 350 at 19th April 2018. With gender diversity should be applied to executive committees and in 2017. In 2018, 95% of all P&L roles on executive
now accepted as a powerful tool in helping to gender diversity. We continue to support the committees in the FTSE 350 are held by men, and
achieve better decision-making and improved recommendation made by the Hampton-Alexander only 5% by women. This is important as these are
business performance, whilst also satisfying the Review2 for all FTSE 350 listed companies to springboard jobs for advancement to CEO.
wishes of customers and investors, this report is disclose in their Annual Report and Accounts the
an important contribution to understanding where gender balance on the executive committee and its Figure 1 - Percentage of women on executive
Britain’s major businesses stand. direct reports. committees in the FTSE 350
100%
THE KEY FINDINGS ARE GROUPED 1. Women on Executive Committees
INTO SEVEN THEMES: The failure to appoint women to key positions in 90%
business continues. For the third consecutive year,
ff Women on executive committees
the data shows there has been no real progress in 80%
ff Companies with women CEOs the number of women on executive committees
– it has flatlined at just 16%. This chronic lack 70%
ff The relationship with company performance
of progress in such a vitally important area is a
major issue for those seeking change in Britain’s 60%
ff Women executives on main company boards
businesses and raises serious questions.
ff Gender and other leadership positions 50%
The Government has set FTSE350 companies
ff Gender pay a target for 33% of their executive committee 40%
ff Future problems for companies failing to members and their direct reports to be women by
30%
modernise 2020, but as this report shows, this will not be met
without serious intervention and rapid action.
20% 16% 16% 16%
This is the third annual Women Count report and,
disappointingly, there has been a decline in the The lack of women in such senior positions is
alarming, but the issue becomes even more 10%
number of companies publishing their executive
committee data compared to last year (220 in 2018 concerning when looking at the roles performed
0%
versus 241 in 2017)1. by women who do achieve promotion to executive
FTSE 350 FTSE 350 FTSE 350
committees. In 2018 a substantial 63% of FTSE 350 2016 2017 2018
WOMENCOUNT2018 7THE COUNT ...continued
2. Companies with women CEOs Money, reducing further the already small number times the number compared to companies with
Leadership matters, and it is very concerning to see of women CEOs at the top of Britain’s businesses. male CEOs.
just how far women have to go in reaching the top
Despite only 4% of companies having women CEOs, Strikingly, Women Count 2018 has identified
spot in Britain’s businesses, with men constituting
where they are in place they deliver positive change, that 63% of companies had no women on their
the overwhelming majority of FTSE 350 CEOs
making a substantial difference to the number of executive committees who held P&L roles,
(96%).
women executive committee members, with an something that should sound a huge alarm bell for
At the date of collection, the data showed there average of 2.9 (up from 2.6 in 2017) compared to 1.4 those seeking a better balance in key positions. All
were 14 women CEOs in the FTSE 350; 7 of these are for male-led businesses. of these companies are male-led and the contrast
in the FTSE100 and 7 in FTSE 250. Following this it with businesses where women CEOs are in charge
There is even more evidence of the difference made
has been announced that Jayne-Anne Gadhia will be is stark.
by women CEOs in the level of women executives
stepping down from her position as CEO of Virgin
in Profit and Loss (P&L) roles3, as they employ four
Figure 2 - Percentage of women CEOs in FTSE 350 Figure 3 - Average number of women on the FTSE Figure 4 - Proportion FTSE 350 executive
350 executive committees by CEO gender committees that have women with P&L roles
4% WOMEN 2.9
3 61% 63% 2017 2018
MEN 2.6 2017 2018 60%
96%
Proportion of companies
2.5
Number of women on executive committees
2 40% 34% 34%
1.4 1.4
1.5
20%
1
5%
2%
0% 1%
0.5 0%
No Women in 1-24% 25-49% 50+%
0 P&L Roles
Female CEO Male CEO Percentage of executives that are women in P&L roles
8 WOMENCOUNT20183. The relationship with company Britain’s businesses and the country are missing just confined to the operational side of business
performance out on a bumper pay day because of their lack of life. The composition of company main boards
As with other significant studies in this area4, progress in getting women into the positions they tells a familiarly disappointing story, where 92%
Women Count 2018 finds a correlation between deserve. If all FTSE350 companies were to perform of executive directors are men and only 8% are
achieving a better gender mix in senior company at the same level as those with women on their women. This shockingly low level of women
roles and the level of profit achieved. FTSE350 executive committees, the impact would be a £13 executives on main boards has not changed
companies with no women on their executive billion gender dividend for the country. between 2017 and 2018.6
committee only achieve a net profit margin5 of
4. Women executives on main company The failure to advance women executive directors
8.9%, whereas the figure soars by 5%, to 13.9% in
boards is further revealed in the vast number of FTSE350
businesses with at least 25% women at this level.
The huge disparity between the levels of men and companies (248) which have none on their main
women at the top of FTSE350 companies is not company board. That’s a huge proportion of
Figure 5 - Net Profit Margin for FTSE 350 companies by Figure 6 - Number of Executive Directors on FTSE main Figure 7 - Average number of women on FTSE 350
women on executive committees plc boards Executive Committees by gender of main Board Chair
59 WOMEN 3.0
Number of women on executive committees
2017 2018 13.9% 2.6
14%
MEN
652 2.5
12% 11.2%
10% 8.9% 2.0
Profit Margin
1.5
8% 1.5
6.3%
6%
4.2% 1.0
4% 3.2%
0.5
2%
0% 0.0
No women With women >25% women Female Male
executives executives executives Gender of Board Chair
WOMENCOUNT2018 9THE COUNT ...continued
Britain’s major businesses without a single women Director (SID), Chair of the Remuneration The data shows that appointing a women into any
executive on this crucial body. Committee – and, in common with other areas, of these senior positions makes a difference, with
found that once again, women are very much companies likely to have a larger number of women
The situation is hardly improved for those
second-class citizens. The headline figures are executives than if the same senior positions were
companies that have taken at least some steps in
clear – there are only 19 women Chairs of FTSE 350 held by a man.
the right direction, as in most cases where there
companies (6 in the FTSE 100 and 13 in FTSE 250.
are women executive directors on the main board,
there is only one. Women Chairs are making a difference with Figure 10 - Average Median Pay Gap (hourly pay) by
sector (%)
the average number of women members of the
In the entire FTSE 350, only 7 companies have more
executive committee in these businesses being
than 1 woman executive director on the main board. FTSE 350 16.9
2.6, as opposed to 1.5 when the Chair is a man.
5. Gender and other leadership positions This achievement is only slightly lower than the Mining & Quarrying 39.2
Women Count looked further into the most senior correlation between women CEOs and the number Real Estate Activities 28.5
leadership positions in FTSE350 companies – CEO, of women on executive committees.
Financial & Insurance Services 27
Chair of the main board, Senior Independent
Electricity, Gas, Steam,
Waste & Water 20.9
Figure 8 - Average Median Pay Gap (hourly pay) by Figure 9 - Average Median Pay Gap (hourly pay) by
Number of Women on FTSE 350 Executive Committees (%) CEO gender (%) Information & Communication 18.1
Construction 16.5
19.0 18.0 17.4
18.0 16.9
Administrative &
18.0 15.7
Average median hourly pay gap
16.6 16.9 Support Services Activities
Average median hourly pay gap
16.5 16.0
17.0
14.0 Transport & Storage 15
16.0 11.0
12.0 Manufacturing
15.0 12.5
14.0 10.0
Professional, Scientific
8.0 & Technical Activities 10.8
13.0
12.0 6.0 Accommodation & Food
Service Activities 8.3
11.0 4.0
10.0 2.0 Wholesale & Retail Trade 2.9
No Women Any Women >25% Women FTSE 350 0.0 0 5 10 15 20 25 30 35 40 45
Number of women in the Executive Committee (%) Female Male FTSE 350 Average Median Pay Gap (%)
10 WOMENCOUNT20186. Gender Pay the highly competitive business world, and an Younger people also care strongly about the gender
Companies that promote women into senior especially important factor when considering how mix with a significant 62% of people aged below 35
positions do better on gender pay. Women Count to recruit younger people, who will be the lifeblood agreeing that having a balance of men and women
2018 shows how companies with higher numbers of of a company’s future. at all levels in the workplace matters to them.
women on their executive committees have lower Once again, this decreases as people get older with
The emphasis on the importance of better gender
median pay gaps between men and women. only 35% in the 65+ age group sharing the same
balance for younger people can be seen with 54%
sentiment.
Interestingly, the data also shows that the of under 35s who think that increasing the number
difference in pay between men and women has a of women in senior roles at work would give The wider public has a firm view on a healthy
relationship with the gender of the company CEO, them more role models to look up to. Conversely, gender mix for businesses, with 59% saying that
with women-led businesses having an average only 27% of 55-64 year olds think the same way, all-male or male-dominated workplaces should be
median pay gap of 11%, which rises to 17.4% when illustrating the wide gulf that exists between key a thing of the past, with the same number agreeing
the CEO is a man. sections of the population. that young people want to work in workplaces that
have a good balance of men and women.8
This same relationship between women in key
positions and the gender pay gap is evident across Figure 11 - Sentiment about gender diversity in the workplace
different industries, with the highest gaps in sectors
All-male or male dominated workplacesshould be a thing of the past 59%
with some of the lowest numbers of women
executives. Once again, the lower the number of Young people want to work in workplaces that have a good balance of
59%
women executives the higher the gender pay gap.7 men and women
7. Future problems for companies failing to Having a balance of men and women at all levels in a workplace
50%
modernise matters to me
The lack of progress by companies in getting I wouldn’t want to work in a workplace if it was all-male or male dominated 43%
more women onto their executive committees
is increasingly out of step with popular opinion, The campaign for gender balance in the workplace is another example of
41%
especially with younger people. Companies will political correctness gone wrong
face growing pressure to change as young people’s Increasing the number of women in senior roles at work gives me more role
views on gender diversity diverge with the older 41%
models to look up to
generation. This will impact on the ability to attract 0% 20% 40% 60% 80%
and retain the best talent, a key differentiator in Average Median Pay Gap
WOMENCOUNT2018 11CONCLUSION METHODOLOGY
Women Count 2018 lays bare the ongoing by 2020 on their risk register. And, companies The Pipeline has produced Women Count 2018 as the
exclusion of women from key positions in must change tack and recognise that men and third study in a series of reports, building on previous
Britain’s major businesses. Fine speeches have women require and respond to different types findings published in 2016 and 2017. The Women Count
been made, policies constructed, Government of support and incentives. series is the only study undertaken to measure and
reviews commissioned, yet for the third year monitor the role, value, and number of women executive
Some companies are making strides to a more
running the number of women on executive directors on the FTSE 350 executive committees and
positive future, especially where a woman CEO
committees in the FTSE 350 has flatlined at main boards. This year, we have extended the report
is in charge, and they are providing perhaps the
16%. significantly to:
greatest lesson from Women Count 2018; it
This report shows how such a lack of progress is being left to women in senior positions to ff Examine the number, role and value of women
is inhibiting company performance, at the same deliver the change we need. Chairs, Senior Independent Directors and
time as entrenching divisions in pay between Remuneration Committee Chairs on FTSE 350 main
If corporate Britain is to finally begin meeting boards
men and women. Urgent and far-reaching
the expectations of Government and the wider
change is required if FTSE 350 companies are to
public, especially the young, of better gender ff Review the inaugural gender pay data publicised by
meet the Government’s target for 33% of their
diversity at work, it must change direction, and FTSE 350 companies and identify any correlations
executive committee members and their direct
fast. Time is running out and the country is ff Survey the attitudes of British men and women
reports to be women by 2020. Carrying on as
watching. through a quantative poll carried out by Populus
before is not an option.
towards gender diversity from a wide range of ages,
We urge a new approach that understands locations, and socio-economic backgrounds
and embraces gender diversity, making it as
important to a company as any other business The data was gathered through a mixed-methods
critical issue. CEOs must take ownership and approach, which included researching company websites,
lead from the front, with hard actions matching annual reports and other company communications (as
warm words. Companies must take risks on at 19th April 2018), gender pay gap data (as at 25th May
women with potential, as they currently do with 2018), and polling responses. The quantative polling of
male colleagues. Women should be encouraged British attitudes was carried out by Populus, surveying
by transparency on roles and targets; in 2,000 people between 2nd/3rd May 2018.
particular, FTSE 350 companies should place the
For further information, please contact Ana Pacheco,
33% target for women on executive committees
Director of Planning, The Pipeline on 020 7636 9002.
12 WOMENCOUNT2018Female Male
WOMEN COUNT 2018 AT A GLANCE
Corporate UK missing out on Members of P&L roles on Executive
£13bn
Gender Dividend
FTSE 350
Executive
Committees
84% FTSE 350
Executive
Committees
95% Directors on
FTSE 350 Boards
92%
16%
8%
5%
BENEFITS OF WOMEN CEOs
Executive Committee Roles P&L Roles Executive Director Roles
2x 4x 10x
Women CEOs have more than Women CEOs have four times the Women CEOs have almost ten
twice the average number of average number of women executives times the average number of
women on their executive in P&L roles on their executive women executive directors on
committees than male CEOs committees than male CEOs their boards than male CEOs
Female Male Female Male Female Male
CEO CEO CEO CEO CEO CEO
WOMENCOUNT2018 13APPENDIX 1: INDUSTRY INSIGHT 22% 20%
It is alarming that Women Count found
representation of women on FTSE 350 Executive
Committees remains at only 16%, with no real Professional, Scientific
19% Wholesale & 18% & Technical 17%
progress since 2016, but is that the case in individual Retail Trade
Activities
industry sectors? It is even more discouraging to
find the results are low whichever industry sector
we analysed.
The only sector that is slightly higher than the
Accommodation &
FTSE 350 is Wholesale and Retail Trade, continuing Electricity, Gas, Steam,
17% Financial & Insurance 15% Food Service
Waste & Water Services
its position as a higher performer in 2017. This Activities
reflects the high percentage of women they employ
compared to other sectors. At the other end of the
scale, Manufacturing, Mining and Construction
continue to be in the bottom quartile, echoing the
dominance of male employees and leaders in these 15% Information & 13% Transport & 13%
sectors. Communication Storage
The picture is even more dispiriting in terms
of women in P&L roles on FTSE 350 executive
committees, especially as these are springboard
jobs for advancement to becoming a CEO. Although
Administrative &
the stand out statistic is Mining with 1% of women Real Estate 12% Construction 10% Support Services
Activities
in P&L roles on their executive committees, all Activities
sectors in the FTSE 350 have much work to do.
To read more about our research on different
industry sectors, go to our website:
www.execpipeline.com Mining &
Percentage of Manufacturing Quarrying
executives that are
female in FTSE 350
by industry sector
14 WOMENCOUNT2018FOOTNOTES
1. Only 220 companies in the FTSE350 publish 4. Various renowned organisations, such as shareholders’ interests and, more broadly, of
full details of their Executive Committee, of the IMF, McKinsey and Grant Thornton, wider stakeholders including responsibility for
which 82 are from the FTSE100 and 138 from have produced reports which also found a oversight and governance.
the FTSE250. correlation between financial outcomes and
women in senior roles. 7. We collated and analysed gender pay data
2. Hampton-Alexander Review (2017) FTSE published as at 25 May 2018 which showed all
Women Leaders. 5. Net Profit Margin is the ratio of net profits, or the majority of employees based in the UK
before tax, to turnover (i.e. revenue). Expressed entities of companies listed in the FTSE 350.
3. For the purpose of this research, we as a percentage, Net Profit Margin expresses
identified the following roles as having P&L how much of each pound collected in revenue 8. Populus polled over 2,000 people, representing
responsibility: Chief Executive, Deputy Chief is converted into profit. a cross-section of the general public, on the
Executive, Chief Finance Officer, Finance 2nd & 3rd May 2018 on their attitudes to
Director, Managing Director, President/ 6. This section of the report focuses on women gender diversity.
Executive Vice-President/Senior Vice- executive directors only and must not be
President/Director of a division, country/ confused with non-executive directors.
region or product, Chief Operations/Supply FTSE 350 company boards are made up
Chain Officer, Chief Commercial Officer, Sales of executive directors and non-executive
Director and Trading/Merchandising Director. directors. Executive directors are responsible
We also analysed biographies on company for running the organisation full-time on a
websites to determine if their role involved day-to-day basis. Whereas, the non-executive
responsibility for running P&L accounts. director’s role on main boards is to represent
WOMENCOUNT2018 15WOMENCOUNT2018
Role, Value and Number of Female Executives in the FTSE 350
www.execpipeline.com #WomenCount2018 @execpipeline the-pipeline-ltd
Front cover: Nimisha PradeepKumar - Finance Product Owner, Lloyds Banking Group — Listed in the EMpower 100 Ethnic Minority Leaders (featured in the FT) © 2018 The Pipeline. All rights reserved.You can also read
