Women Underrepresented in Top CEO Roles at FTSE 100 Companies finds Report

A recent study has shed light on the continuing gender imbal- ance in CEO appointments among the UK's largest companies listed on the FTSE 100. Despite some progress, women are still facing significant barriers in reaching the pinnacle of corporate leadership.

The study, conducted by Russell Reynolds Associates, reveals that a mere 27% of CEO appointments on London's premier stock index during the first six months of the year were women. This stark statistic highlights the uphill battle women continue to fight for equal representation in top executive roles.

Although there has been a gradual increase in female CEO appointments, the overall rate of progress remains disappointingly slow. The five-year average of women appointed as CEOs stands at just 16%, underscoring the pressing need for accelerated change.

Laura Sanderson, the UK country manager of Russell Reynolds Associates, acknowledged the positive momentum but urged for a sense of urgency in addressing the gender gap. She emphasized that true gender parity can only be achieved when women occupy at least half of the CEO positions every quarter.

In recent years, efforts to bolster female representation at board level have intensified, with FTSE 350 constituents setting a target of 40% of senior positions held by women by 2025. Surpassing expectations, this target was reached earlier than anticipated, signaling progress at the senior management level.

However, the study indicates that there is still a long way to go, as the majority of FTSE 100 boards continue to "overwhelmingly favor men" for top leadership roles. Despite the positive strides made by some companies, the overall corporate landscape remains far from achieving gender equality at the highest echelons of decision-making.

Comparatively, FTSE 100 companies outperform their counterparts in the S&P 500 in terms of female CEO appointments. Over the last five years, only 9% of CEO positions on the S&P 500 were given to women, further highlighting the challenges women face in attaining top leadership roles globally.

Interestingly, European boards have demonstrated greater support for women in top positions, with 20% of CEO appointments on the Euronext 100 index going to females over the same five-year period.

Despite a significant churn in CEO positions in the first half of 2023, with 11% of FTSE 100 CEO roles changing hands, there is optimism that the aftermath of the Covid-19 crisis may drive change and create opportunities for women in leadership. However, this period of transition should be seized upon to push for greater gender diversity, ensuring that talented and capable women are provided equal opportunities to lead and contribute to the success of Britain's largest companies.

In conclusion, while there have been notable improvements, the study by Russell Reynolds Associates reminds us that gender disparity at the top levels of corporate leadership is still a pressing issue. Further concerted efforts and proactive measures are necessary to break down barriers and pave the way for more women to secure CEO roles in the FTSE 100 and foster a truly diverse and inclusive business environment.