There are just 12 female CEOs in FTSE 350

While the tide is turning and diversity, equity and inclusion (D,E&I) are climbing the agenda, the pace of change at the top of some of the biggest companies in the word is glacial.

This is according to the latest report from The Pipeline, titled Women Count 2022. This is the seventh iteration of this report, which tracks gender equality at the top of FTSE 350 companies.

This year, 96% of FTSE 350 CEOs are men, meaning just 4% (or 12) companies have female CEOs. This is up by four since 2021, including the new CEO for Taylor Wimpey in the FTSE 100 Jennie Daly.

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

In addition, three in four members of FTSE 350 executive committees are men. Out of a total of 2,358 executives on executive committees, 610 are women, and 25 companies have no women on their executive committee.

The Women Count 2022 found that CFOs, the most common stepping stone to CEO, are 82% male, with just a 1% rise in the number of female CFOs in the last year.

10% of FTSE 350 executive committees have no women, and 70% of main company boards are only composed of men. Nearly half of all FTSE 350 companies have no women in profit and loss roles, whereas no companies have no men in these jobs.

The business benefits of female leadership

This is a bleak picture, but for Pipeline co-founders and authors of the Women Count 2022, Lorna Fitzsimons and Margaret McDonagh, “the tragedy is not just for individual women who are blocked from fulfilling their full potential.

“The real tragedy is that businesses are cutting themselves off from a pool of talent and potential growth. Businesses with diverse voices at the top, across gender, race, and class backgrounds, do better.”

The report found that if the FTSE 350 companies with the worst record on gender equality in leadership increased the proportion of women on their executive committees to more than a third, then they would see £58 billion in pre-tax profit.

In fact, having more women in leadership positions across the FTSE 350 would lead to £900 million in pre-tax profit on average for each FTSE 350 company.

In addition, if the 25 companies with no women in their executive committees did slightly better on gender equality – even moving to just having 25% female representation on their executive committees, they would see a 14.6% increase in pre-tax profit – this equals £6.8 billion for the UK economy.

Having a gender balance in executive committees in the FTSE 350 could boost the UK’s GDP by around 2.5%. This would be welcome given the serious financial situation the UK is facing at the moment.

“‘Our message is simple: recruit, retain and promote more women. If you want to prosper, take a hammer to the glass ceiling in your firm. Don’t just talk about it, act,” commented The Pipeline’s Fitzsimons and McDonagh.

“The good news is, when companies make the necessary changes towards gender equality, they often see the benefits immediately.

“‘We call on the nation’s business leaders to set out concrete plans to advance women within their ranks. If they don’t, they will be damaging not only their reputation but their profit line, business prospects and society as a whole.

“It is in business’ self-interest to act now, and when they do, we will applaud them every step of the way.’

The report lays out a few recommendations for change. The first is for CEOs, no matter their gender, to own and lead action on gender equality in leadership. Male allyship is essential to success, but only if it is genuine.

Women Count 2022 found that female CEOs are four times more likely to appoint female executive directors to their board. So male CEOs need to step up and ensure the path to the top is equal.

The second is to set targets and goals, and ensuring they are accountable and authentic. This creates an impetus for action across the whole business.

Finally, there must be zero tolerance on bad behavior. Thankfully, the tide is turning, and employees and investors expect companies to embrace and champion D,E&I at work.

Those that fail to do so are already struggling in the ‘Great Resignation’, and their challenges are only going to get more acute if they don’t take action now.

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