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The Female FTSE Board Report 2016
48
Throughout our research at board level, we found that certain metrics highlighted critical obstacles to
change. For instance, by monitoring the share of new director appointments going to women, it became
apparent that they had to increase to about one third for FTSE 100 companies to reach the 25% target;
by monitoring tenure of NEDs, we found that several NEDs exceeded the recommended six year tenure,
thereby reducing the board turnover rates necessary for change. Moving forward, we suggest that board-
level metrics should remain in place and be matched by relevant and creative metrics below board level
(Executive Committee and the pipeline).
5.3 WHAT TARGETS AND METRICS ARE
HELPFUL MOVING FORWARD?
In this next stage, we need to sustain the focus on board level and identify relevant metrics and targets
that need to be considered below board level. We outline below a checklist of metrics and possible
voluntary targets that could be adopted.
Our 2015 Female FTSE study highlighted that whilst FTSE Chairmen have largely taken up the challenge
set by Lord Davies and increased the number of women on boards, CEOs now have to tackle the issue
of women’s representation throughout the pipeline with the same urgency, discipline and accountability.
TABLE 17. METRICS AND TARGETS FOR GENDER DIVERSITY
Level
Metrics companies should collect
Possible targets
Board
––
% men and women
––
% men and women across executive and
non-executive roles
––
% male and female directors sitting on
Audit and Nominations board committees
––
% women Chairmen across FTSE 350
––
% women Senior Independent Directors
across FTSE 350
––
Board turnover rates
––
% new appointments going to women
––
% women on long lists in new board
appointments
––
% women shortlisted in new board
appointments
––
33% women on board (target
proposed by the 2015 closing
Davies report and endorsed by the
government)
––
% women executive board members
––
30% women on long lists of
candidates for NED positions (as
required by the Voluntary Search
Code since 2011)
––
% women on short lists of
candidates for NED positions
Executive
Committee
––
% men and women
––
% men and women in operational and
support ExCo roles
––
% men and women who were internally
promoted to ExCo positions
––
% women on ExCo
––
% women in operational roles
Below
Executive
Committee
––
% men and women at different seniority
levels – clarify definition of ‘senior
management’ in annual reporting
––
% men and women in different business
units
––
% men and women in different functions
––
% men and women promoted
––
% men and women afforded
developmental opportunities (e.g.
challenging assignments, leadership
development programmes, mentoring
and sponsorship, expatriate assignments)
––
% men and women recruited
––
Retention and turnover rates for men and
women
––
% women direct reports to ExCo
––
% women at various senior
management ranks
––
% women promoted should reflect
gender split in available internal
candidate pool (proportionality in
promotions)
––
% women given developmental
opportunities should reflect or
exceed the gender split in available
internal candidate pool
––
% women recruited at entry level
should match % women in labour
market
Targets for Gender Balance