THE ODGERS BERNDTSON CORPORATE LEADERSHIP BAROMETER

The 20-year Journey on Gender Personal Perspectives From Leaders In Executive Search CORPORATE LEADERSHIP BAROMETER

Virginia Bottomley, Chair, Board Practice

It’s 20 years since the first woman became chief executive of a FTSE 100 company. After Marjorie Scardino took over as CEO of Pearson others followed and now there are six female chief executives and six female chairs of FTSE 100 companies. It’s still not enough, but things are changing. This 20-year mark, ushering in the most comprehensive measures yet to help women progress their careers, seems a good moment to take stock. Progress has been measured and analysed, paving the way for a new and more ambitious approach led by Hampton-Alexander, soon to report after its first year. The new requirements force companies to look not just at the composition of their boards, welcome though that is, but also women rising through the ranks. This is welcome because it focuses attention on organisations and how they foster and develop all talent. Taken together with new requirements enforcing greater transparency on male and female pay, these changes promise to accelerate progress on gender and, hopefully, also other aspects of diversity and inclusion. As the leading executive search firm in the UK, and one of the largest globally, Odgers Berndtson has a role to play. We are one of the lead firms behind a voluntary code of conduct to promote best practice on diversity in recruitment, and proud of our record, but societal change is complex and our industry is one of many pieces in the jigsaw. Comprehensive measures and statistics on progress abound. Less so are informed perspectives taking a longer view – of changes made and perhaps still needed. Our business is about people, though we rarely make personal perspectives public. That is precisely our aim here. Twenty years into the journey on gender is a good time to take stock.

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WOMEN AT THE TOP IN FTSE 100 COMPANIES How times have changed

3 6 CEOs CEOs 2007 1 2 7.7 % 2017 CEO 1997 OF BOARD 6.4% MEMBERS OF BOARD MEMBERS 2001 2017 6.7% OF BOARD 0% MEMBERS 1996 OF COMPANIES WITH ALL MALE BOARDS

2017 FTSE 100 women directors

% 43% 30 26.8 26.7* OF COMPANIES WITH ALL MALE BOARDS 25 23.6* 2001 20.8* 20 17.3*

15.0 15 12.5 11.7 12.2 9.4 10 6.2

5

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

*Data from March

Source: Professional Boards Forum BoardWatch. Data provided by BoardEx and The Female FTSE Board Report.

Sources: BoardEx Cranfield University

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Virginia Bottomley given way to a more collaborative, Many women leave executive Chair, Board Practice team-working style where women careers earlier than a man would. frequently have greater strengths. I frequently have discussions with I was fortunate to avoid the conflicts women about continuing longer, but Changing minds many women of my generation had, top jobs still usually require people ‘‘ as women in my family had always At Odgers Berndtson, which I joined to work 24 hours a day, seven days worked. I never intended to enter in 2000, I’ve had a track record of a week and many women just don’t politics. My husband Peter had been being involved in the appointment of want to do that. an MP for about 10 years. One day a senior women. In the commercial Most women who have reached the call came from No. 10 and a man world, there had been a stereotype top of business have a supportive said, “Mrs Thatcher says we need that to be on a board an individual other half. It’s hard to have two more women”. needed to have been a CEO or CFO, people in the front seat with children. or something in the City. I used to say There were only 23 women out of 600 For jobs which are really full-on, that fewer women had gone up that or so MPs when I was elected in 1984. full-time, whether a woman or a man, greasy pole, so it was harder for them. We were treated like an endangered you do need a great support system. species. I was put in an office with a There has since been a profound Businesses can help more. We need very polite gentleman. Every time I transformation in how chairmen look more role models, flexible HR went in and out of the room he would at the composition of boards. The old practices, mentoring, networking, stand up. It was extraordinary. system of the golf club or the little and real diversity champions at the black book has given way to rigorous When I was asked to join the Department highest level. of the Environment, my first reaction analysis and assessment of the skill was I don’t know anything about it. sets required. Females who may not Any man would have said, “Oh Prime have reached the same hierarchical ’’ Minister, I’ll bring a clear mind to the levels as men often have other problem”. When did you ever hear qualities valued more greatly. any man say, “I don’t know anything More to be done about it?” There are now six female chief executives Making a difference in public life and six chairs of FTSE100 companies. It’s not enough but whoever thought Later, when I was responsible for the there would be a female secretary health service, I became particularly general of the TUC, or a female chief involved in diversity. The NHS staff executive of Lloyds of London? is largely female with many ethnic minorities. Of all organisations, there was no justification for it to be run by white men. But it was.

I made sure the NHS joined Opportunity 2000, and we were the first government department to adopt it. It was a great, voluntary, diversity, female-developing programme, with targets, mentoring, coaching and development. Having done it for women, I overhauled the policies on race and minority ethnic groups. We made some progress.

Business wakes up

Gender diversity did move faster initially in government and the public sector. However business has woken up to the fact many purchasing decisions are made by women, increasingly wealth will lie in the hands of women and that women have skills and qualities critical to success. Perhaps too, the command and control style of leadership has 4 CORPORATE LEADERSHIP BAROMETER

Firms say: “we recruit really brilliant There is also an important female graduates. They come in and affordability question around who get to a certain level, but because provides care, not just for children, somebody is needed to be dedicated but also for parents and other family to clients – which means travel, being members. Current inequality in pay, available, driving the business and the persistent gender pay gap relationships out of core hours – we brings financial restrictions which are lose these women. Or the women like a set of handcuffs on men and who come back to work after career women in terms of the choices that breaks, come back at a lower level they make role.” This is insanity. Aine Hurley If there were absolutely no difference Head, Human Resources Practice Overall the debate about diversity is in remuneration between both now central; not just across the HR sexes, it would be an enormous step I came from a working-class community, but all business leaders, to rebalancing equal career background where my father was a and of course touching on all aspects opportunities. Then it would come carpenter and my mother ran a public ‘‘ of diversity – not just gender. down to ambition and opportunity – house and also had 9 children. In rural Chairmen and chief executives talk a fundamental shift getting to a level Ireland then, having a female publican about this – no longer as just a policy playing field. was quite unusual and a working or process, but as an integral part of mother who did that job even more There are many ways that businesses the success of a business. unusual. So from a very early age I can help too. Flexible working and had a strong role model, showing Many women are not prepared to job sharing for example, simple things that women could have multiple follow the same paths as male that are much more common in the opportunities. colleagues to get to the top, but public sector than the private sector. Technology now enables us to be When I graduated in the 1980s there I think many people are now anywhere at any time. Organisations was still a tendency for women to be looking for more balanced careers. not using these are reducing their pointed primarily towards the caring Some don’t want to give the 24/7 talent pipeline, not just for women, professions rather than broader availability that top roles often but for generations coming up. commercial opportunities. I started require. Others are making out, in another executive search firm, conscious choices not to take Of course there are many other as part of an all-female research opportunities in the same way aspects of diversity besides gender team. We were in the basement and others have before. – age, ethnicity, sexual orientation, the partners – all men – were upstairs! I have been a partner in this firm mental health, disability – to name a few. Thanks to the success we’ve had Similar differences also permeated for over 20 years, and for 10 of in bringing gender diversity into the executive search. For global roles those, I’ve been a working mother. open, we’re discussing these other which would have required significant Our success comes from being an issues in a way they haven’t been travel, the assumption would be that organisation which acknowledges talked about before. That has to be a women were less likely to want those how you live your life and what it good thing. roles or be less suitable because they takes for you to be successful at would have caring responsibilities. work. We’re prepared to be more open and discuss things that I think clients often saw the ’’ fifteen years ago probably weren’t appointment of women in certain talked about. roles as too risky, which reduced the talent pool. Thankfully there were More widely, a much more open brave voices out there where this conversation is still needed about the was challenged. But these support needed for those in senior assumptions reduced the number roles, especially women. How do they of women who were promoted achieve support if they have child through organisations, and I think care or other caring responsibilities? women were often overlooked on A significantly higher percentage of appointments. women would say to me today that they have a partner who assumes And let’s not get too complacent, that responsibility than ten years imagining that everything has changed ago. That’s an important societal over the past 20 years. It hasn’t. shift. But what role does government Odgers Berndtson has done a lot of need to play? There’s a legislative work across the professional services part to this, about equality in access sector, for instance, and the same to services, tax, shared parental comments come back time after time. leave, for example. 5 CORPORATE LEADERSHIP BAROMETER

micro culture within the business. attract those people to the sector. That might be a ‘long hours’ culture, If, for example, they bring or an environment that is not technology skills they are likely to inclusive where women don’t feel have the pick of pretty much every their achievements are recognised sector – so we have to think about in the same way as male colleagues. how we promote financial services. What else can be done? When we New people coming in will likely did the study it was felt that want to work in different ways women often underestimated the so adopting more flexible ways importance of cultivating a network of working should be a natural Anne Murphy and having sponsors in and outside consequence of this change. Head, Financial Services Practice the organisation, to help develop The financial services industry has their careers. Men were more savvy certainly moved forwards during I was lucky enough to grow up in about that. Lots of women early in my career, but there’s definitely still an environment where my parents their career thought doing a good room for improvement. ‘‘ encouraged me to do what I job would get them recognised and wanted and made me feel anything rewarded. Then they saw men was possible. doing a mediocre job, but who did ’’ A little while ago, Odgers much more networking and got interviewed 100 of the most senior recognised more quickly. women in financial services and Mentoring young women coming talked to them about their into the industry on the importance experiences. It was clear that many of developing networks is critical, of them had grown up feeling there so that they learn this earlier – was no difference between what ideally at school – and aren’t left to they or a boy could do. figure it out for themselves. That’s not to say they didn’t face I’ve also seen quite a shift in flexible To be more successful challenges once they had decided working being embraced over my on a career path in financial will require a culture shift. time in the industry. Whilst it’s services. The sector has become ‘‘ becoming much more common for Typically now the top of more inclusive over time. Many of families to have more of a shared them felt that they had to work the house is completely in responsibility for childcare, we still differently or harder than male have some way to go. Whilst the order – chairs, boards and counterparts to achieve the same law is moving in the right direction, executive committees all success. socially I’m not sure how many appreciate the benefits Whilst female representation on couples feel comfortable sharing boards has increased there is still parental leave for example. of a diverse business. some way to go, even more so at One of my sisters lives in Germany However, that attitude executive and senior management and when her daughter was born levels. There’s now a welcome doesn’t always permeate she and her husband shared 12 focus on addressing the talent months parental leave equally and through the organisation. pipeline and indeed promoting now they both work four days a diversity more broadly. I’m glad to week. In the UK I think fewer ’’ say that, overall, senior teams have couples yet would feel comfortable embraced the business case for making that choice regardless of diversity; this wasn’t universally true whether it’s theoretically available when I started out in my career. to them. So it’s great that people The financial services industry was have more flexibility, but do they relatively early in acknowledging and actually feel able to use it? discussing the benefits of gender Looking forward, change in diversity. Over the time that I’ve financial services is inevitable. been involved, the sector has The nature of the skills that will be invested lots of time and money in required in five and ten years’ time trying to address the issue. will be quite different to what’s Sometimes you still have resistance gone before and we’re not in middle management, for necessarily going to find those instance, pockets where women people from within the industry. find it really difficult because of a We need to think about how we 6 CORPORATE LEADERSHIP BAROMETER

Are the FTSE 100 companies with female CEOs frontrunners?

CEO FTSE 100 Board in 2017 FTSE 100 Board in 1997 % Female % Female

Dame Carolyn McCall 33% 0% Current FTSE 100 Company: Easyjet plc Moving to ITV plc as CEO in January 2018 from Easyjet plc. 3 of the 9 Easyjet plc board 0 of the 4 Easyjet Airlines Ltd members are female directors were female 1997: In 1997 she was at The Guardian, and promoted that year from Advertising Director to Commercial Director.

Emma Walmsley 42% 7% Current FTSE 100 Company: GlaxoSmithKline plc

1997: 5 of the 12 GlaxoSmithKline plc 1 of the 14 GlaxoWellcome plc L’Oréal, where she spent 17 years (until board members are female board members were female joining GSK in 2010). During her time at L’Oréal she held a variety of marketing and general management roles in Paris, London and New York.

Alison Cooper 27% 0% Current FTSE 100 Company: Imperial Brands plc

1997: 3 of the 11 Imperial Brands plc 0 of the 9 Imperial Brands plc PwC where she started her career. board members are female board members were female She worked with various clients, including on acquisitions and strategy planning.

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CEO FTSE 100 Board in 2017 FTSE 100 Board in 1997 % Female % Female

Véronique Laury 44% 9% Current FTSE 100 Company: Kingfisher plc

1997: 4 of the 9 Kingfisher plc 1 of the 11 Kingfisher plc Leroy Merlin, where she spent 15 years in board members are female board members were female various commercial roles before joining Kingfisher in 2003.

Liv Garfield 44% 9% Current FTSE 100 Company: Servern Trent plc

1997: 4 of the 9 Severn Trent plc 1 of the 11 Severn Trent plc Working for the British Consulate in board members are female board members were female Brussels. Her first graduate role was at Accenture (joined in 1998). She became a consultant in the Communications and High Tech Market Unit at Accenture.

Alison Brittain 44% 8% Current FTSE 100 Company: Whitbread plc

1997: 4 of the 9 Whitbread plc 1 of the 13 Whitbread plc Barclays – she joined Barclays as a board members are female board members were female graduate trainee and held various senior roles there.

Data Sources All current board data sourced from profiles provided on company websites and correct as of September 2017. Historical data sourced from BoardEx Analytics except for: easyJet Airlines Ltd (Data sourced from accounts filed at Companies House); GlaxoWellcome Plc (Data sourced from Morningstar Documents Library); Kingfisher (Data sourced from Kingfisher archive); 1997 data on individuals sourced from a combination of individual profiles and press reports.

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Liz Stewart process or give up and go Head of Executive Assessment independent. Once they get to their 40s, it’s often a different ball game; & Development they are better off financially, they I’ve never seen my male colleagues can provide for additional support as males but colleagues. From the themselves and their kids need a ‘‘ outset, I have interacted with them different rhythm of attention. on an equal basis. I’ve probably been Women and men who have caring fortunate to be in organisations responsibilities may work flexible where gender equality was hours or days to enable them to be recognised, and had male mentors present at home. But their targets and who saw my potential and sponsored the organisational working patterns Some organisations have my professional development. remain the same. They may be able followed the numbers game, I feel passionate about diversity in to leave the office at four o’clock and ‘‘ the workplace because it enables dial back in at eight to finish the appointing women to more richer working in all kinds of ways. to-do list. But important meetings senior positions without I love working in teams, collectively are not arranged around these sorts owning objectives and particularly of timelines or take account of really trying to engage growing an organisation. But to do geographical dislocation. These carers with them. that in an efficient, successful and often find they are missing out on sustainable way takes diverse skills, the critical influencing formal and ’’ perspectives and personalities. informal meetings. Providing a “bag Real investment in carrier” – an enabler, that attends Some organisations have followed meetings and takes away the supporting critical career the numbers game, appointing straightforward tasks that need to ‘‘ women to more senior positions periods and real change be done, would allow these women without really trying to integrate in senior jobs to focus on the in how jobs are done is them. It’s often been about form important meetings and where they without substance. Some women imperative to support added critical value. inclusion as well as gender who have gone on boards or executive teams will admit it’s been It will be money well spent and it’s diversity. really difficult, because the games in only for a relatively short period of the “boy’s playground” are still being time. Support through stretching ’’ played out. Where the chief executive periods will generally be rewarded or chairman has genuinely wanted with loyalty – and the retention of a different perspective, then they’ve great talent. changed the culture of the team, irrespective of gender mix. And they’ve ’’ reaped the benefits.

There’s widespread recognition that if we’re going to promote more diversity – and specifically encourage more females to do top jobs – there needs to be more innovative flexible working. Real investment in supporting critical career periods and real change in how jobs are done is imperative to support inclusion as well as gender diversity.

First and second career leadership roles are usually appointed in the late 20s and early 30s, often at the time a woman is taking time out for a family. It can put incredible pressure on them and the family relationships. By providing additional finances or resources during that period will ensure they don’t burn out in the

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