BUSINESS LEADERSHIP: THE CATALYST FOR ACCELERATING CHANGE
With thanks to Follow us on twitter @30percentclub BoardEx for its ongoing support Gender balance on teams achieves better outcomes. OUR OBJECTIVES are to achieve 30% women on FTSE 350 boards and 30% women at senior management level of FTSE 100 companies by end 2020. AS CHAIRS, WE HAVE AN OBLIGATION TO SPEED UP THE PACE OF CHANGE AND INFLUENCE THE BOARD SELECTION PROCESS TO TAKE ADVANTAGE OF THE AVAILABLE TALENT POOL. WE MUST CHAMPION DIVERSITY WITHIN OUR OWN ORGANISATIONS, DEVELOP OUR FEMALE TALENT AND BE DEMANDING WITH SEARCH AGENCIES TO ACHIEVE BETTER FEMALE REPRESENTATION ON BOARDS.
Sir Win Bischoff, Chair, Financial Reporting Council
DIVERSE BOARDS MAKE BETTER COMPANIES. THEY DRIVE UP PROFITABILITY, ENHANCE INNOVATION AND ENSURE STRONGER CORPORATE REPUTATIONS. SHAREHOLDERS ARE INCREASINGLY EXERTING PRESSURE ON COMPANIES THAT ARE SLOW TO IMPROVE. WE ARE PLEASED “TO SEE THINGS ARE MOVING IN THE RIGHT DIRECTION AND WE DO NOT INTEND TO TAKE OUR FOOT OFF THE ACCELERATOR.
Brenda Trenowden CBE Global Co-Chair, 30% Club WHO WE ARE
LEADERS LEADING BY EXAMPLE
We are a group of Chairs and CEOs taking action to increase gender diversity on UK boards and senior management teams.
The 30% Club campaign was set up by Dame Helena Morrissey in 2010 with the aim of achieving a minimum of 30% female representation on FTSE 100 boards. That target was reached in September 2018 and good progress has been made (current percentage is 32.3%). But, there is still much more work to do to achieve better gender balance at the top of businesses.
Now under the joint leadership of Brenda Trenowden CBE and Ann Cairns, our energies are concentrated on supporting more women into senior management roles and taking action to reach our 2020 campaign goals. Ann Cairns Brenda Trenowden CBE Global Co-Chair, 30% Club Global Co-Chair, 30% Club FTSE 100 CEO MEMBERS
Sir Iván Arriagada, Antofagasta Keith Barr, InterContinental Hotels Group** Dominic Blakemore, Compass Group** Alison Brittain, Whitbread** FTSE 250 CEO MEMBERS Lord Stephen Carter, Informa Group** Mike Coupe, Sainsbury Alan Aubrey, IP Group Andrew Croft, St James’ Place Wealth Mgmt Brian Bickell, Shaftesbury** Mark Cutifani, Anglo American Philip Bowcock, William Hill John Fallon, Pearson** Olivier Brousse, John Laing Group John Flint, HSBC Holdings Stephen Clarke, WH Smith**(stepping down 2019) Liv Garfield, Severn Trent** Luke Ellis, Man Group Chris Grigg, British Land** Rod Flavell, FDM Group** Steve Hare, Sage UK** Tristia Harrison, TalkTalk Group** Stephen Hester, RSA Insurance Group Andrew Horton, Beazley Chris Hill, Hargreaves Lansdown Kevin Hostetler, Rotork António Horta-Osório, Lloyds Banking** Karen Hubbard, Card Factory** Véronique Laury, Kingfisher** (stepping down 2019) Alex Kanellis, PZ Cussons** Dave Lewis,Tesco Johan Lundgren, easyJet** Andrew Mackenzie, BHP Fani Titi, Investec John Martin, Ferguson (stepping down 2019) Jonathan Lewis, Capita Ross McEwan, RBS** Chris Loughlin, Pennon Group Ivan Menezes, Diageo** Dame Louise Makin, BTG** Steve Mogford, United Utilities Group** Convatec* Robert Noel, Landsec** (stepping down 2019) David Nicol, Brewin Dolphin** BT John O'Reilly, Rank Group Unilever ** Preben Prebensen, Close Brothers Nick Read, Vodafone (stepping down 2019) Andrew Rashbass, Euromoney Inst. Investor Andrew Reynolds Smith,Smiths Group David Squires, Senior plc Steve Rowe, Marks & Spencer** Jon Stanton, Weir David Schwimmer, London Stock Exchange Tobias van der Meer, Hastings Group Holdings** Keith Skeoch, Standard Life Aberdeen** Guy Wakeley, Equiniti Group David Sleath, Segro Roger Whiteside, Greggs** James (Jes) Staley, Barclays Bank David Stevens CBE, Admiral Group** David Thomas, Barratt Developments Emma Walmsley, GlaxoSmithKline** Andrew Williams,Halma Aviva** Nigel Wilson, Legal & General Group** Bill Winters, Standard Chartered Bank Charles Woodburn, BAE System
** 30% or more women at ExCo + direct report levels Source: Hampton-Alexander Review, Nov 2018 FTSE 100 CHAIR MEMBERS
John Allan, Barratt Developments*/ Tesco* Charles Berry, Centrica FTSE 250 CHAIR MEMBERS Donald Brydon, Sage* Sir Roger Carr, BAE Systems* John Barton, EasyJet* Stuart Chambers, Anglo American Charles Berry, Weir Andrew Cosslett, Kingfisher* Stuart Chambers, Travis Perkins Annette Court, Admiral* Roger Devlin, William Hill Ian Davis, Rolls Royce* Andrew Duff, Elementis* Roger Devlin, Persimmon Sir Charles Dunstone, TalkTalk Andrew Duff, Severn Trent*(stepping down 2019) Ian Durant, Greggs* Mike Evans, Just Eat* Douglas Flint, IP Group Douglas Flint, Standard Life Aberdeen* Gary Hoffman, Hastings Group* Anita Frew, Croda International* Martin Lamb, Rotork* Sir Peter Gershon, National Grid Paul Lester, Essentra* & McCarthy & Stone John Gildersleeve, British Land (stepping down 2019) Simon Miller, Brewin Dolphin* Sir Philip Hampton, GlaxoSmithKline* Sir John Parker, Pennon Group* Andrew Higginson, WM Morrison Sir Ian Powell, Capita Sir John Kingman, Legal & General Group Sir Nigel Rudd, BBA Aviation*/ Meggitt* Ken Mackenzie, BHP* David Tyler, Hammerson* Sir Adrian Montague, Aviva* Deanna Oppenheimer, Hargreaves Lansdown* Sidney Taurel, Pearson* José Viñals, Standard Chartered Bank* Paul Walsh, Compass Group* * 30% or more women on board Source: BoardEx, 05 June 2019 OUR APPROACH
THE BUSINESS CASE FOR DIVERSITY IN SENIOR ROLES IS CLEAR
The business case is clear – a higher standard of corporate governance, improved financial performance and an enhanced capacity to attract and retain female talent.
Diverse teams make better decisions: McKinsey & Company research of 180 publicly traded companies found ROEs were 53% higher for companies ranking in the top quartile of executive board diversity than those in the bottom quartile. Similarly Credit Suisse found that companies where women made up at least 15% of senior managers had more than 50% higher profitability than those where female representation was less than 10%.
One woman is not enough: 30% is the proportion when the contributions of a member of a minority group are valued in their own right. Research has shown that a critical mass of three or more women can cause a fundamental change in the boardroom and enhance corporate governance. GETTING TO 30% ON FTSE 350 BOARDS
AN ACHIEVABLE GOAL
Achieving 30% female directors on FTSE 350 boards is within sight. Women currently comprise 29.3% of FTSE 350 board seats and 168 companies have already reached 30%. There are 4 all-male boards, down from 151 in 2010.
Meeting this target will require demand by investors, leadership from board chairs, commitment by nominations committees and action from head hunters. It will also require an ongoing investment from CEOs and leadership teams in developing the pipeline of female directors.
Percentage of female directorships on FTSE 350 boards
29.3% 30% 27%
24.5% 25% 21.9% 23%
20% 17.4% 14.7% 15% 11.5% 9.5% 10%
5%
0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 GETTING TO 30% AT FTSE 100 SENIOR MANAGEMENT LEVEL
THE PIPELINE GOAL
Achieving 30% women at senior management level of FTSE 100 companies is also within sight. Women currently comprise 27% at Executive Committee and direct report levels.
FTSE100 35 companies have already reached 30% There are 5 all-male Executive Committees
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SHARING RESOURCES AND COLLABORATING
The 30% Club complements and amplifies individual company efforts and existing groups through measurable goals and broad collaboration.
There is no financial commitment; the 30% Club campaign is driven by our Ambassadors and Working Groups that are made up of senior directors and executives who volunteer their time and skills to help direct efforts.
The Working Groups are primarily focused on influencing change by working with investors, the government, the media, as well as Chairs, CEOs, HR Directors and Strategy Directors. FOCUSING OUR EFFORTS
INFLUENCING IN THREE KEY AREAS
Companies By signing up Chairs and CEOs to set a 30% target at board and senior management levels, as well through our HR Best Practice Group, our Strategy Best Practice Group and our Cross-Company Mentoring scheme.
Public Policy Through interaction with relevant government departments, task forces and regulators.
Investors Through our UK Investor Group which looks to co-ordinate the investment community’s approach to diversity. Made up of asset owner, asset manager and charity members, the Group represents £11 trillion of global assets. It constructively engages with FTSE350 companies to improve gender balance as a strategic and economic imperative. A COHESIVE APPROACH
Ownership and advocacy by those in power Research focused on cognitive and behavioural diversity
Speakers for Cross-party Schools political support HE Working Group
Business School Scholarships
Int'l chapters Cross-Company Mentoring Scheme
Set clear targets: what gets measured gets managed Constructive engagement including better disclosure, voting OUR GLOBAL CHAPTERS
A FOUNDATION TO BUILD ON
With chapters in fourteen countries/ regions, the 30% Club is approaching this issue on a global scale. Each chapter believes in diversity as a driver of business growth.
Australia
Brazil Canada
East Africa GCC Hong Kong
Ireland Italy Japan Malaysia
Southern Africa
Turkey
United Kingdom Proud to be a Friend of the OECD Forum United States WHAT YOU CAN DO
SUPPORTING THE 30% CLUB
We encourage individuals and organisations to support our work and help us in our quest to increase the number of women on company boards and at senior management level.
• Become a Chair or CEO Member (please check website FAQs for criteria) • Call upon your own organisation to introduce targets for women in leadership • Share information on the 30% Club with your colleagues and networks • Encourage lagging companies to improve their diversity efforts • Host events for the 30% Club • Join in the conversation by tweeting @30percentclub CONTACT US
Please email Francoise Higson to sign up to the 30% Club or for any general enquiries: [email protected]
Please email the Media team for any media enquiries: [email protected] FURTHER INFORMATION
DETAILS ON THE 30% CLUB
Please see www.30percentclub.org/about/chapters/unitedkingdom for further details on our:
Campaign Members (including non-FTSE members) Ambassadors Working Groups FAQs (including membership criteria)
Please see www.30percentclub.org/resources/research-articles for:
30% Club Research Third Party Research APPENDIX KEY STATISTICS (as at 05 July 2019)
FTSE 100 Women on boards: 32.3% Companies with 30%> women on boards: 61 Women at Executive Committee & Direct Report Levels: 27%* All-male boards: 0 Female Chairs: 5 Female CEOs: 7 Female CFOs: 14
FTSE 250 Women on boards: 28.2% Companies with 30%> women on boards: 107 Women at Executive Committee & Direct Report Levels: 24%* All-male boards: 4 Female Chairs: 21 Female CEOs: 6 Female CFOs: 31
FTSE 350 Women on boards: 29.3% Companies with 30%> women on boards: 168 All-male boards: 4 Female Chairs: 26 Female CEOs: 13 Female CFOs: 45
*Source: Hampton-Alexander Review | FTSE Women Leaders, November 2018
With thanks to Boardex for its ongoing support