The number of women holding executive directorships on FTSE-250 boards has fallen in the past two years, a drop of 11 per cent from 47 in 2022 to 42.
The decline comes despite overall female representation on those boards continuing to rise, and means women now represent just 12 per cent of executives across these companies.
Of the 793 women researchers found in such director positions, just ten are CEOs (-17%), 23 are CFOs (-12%), 35 remain as Chairs and 125 are Senior Independent Directors, (an actual 50% increase from 2022).
This means the increase in female representation in directorships FTSE 250 boards was solely driven by women in NED roles, according to Cranfield University’s latest Female FTSE Board Report, supported by EY.
“With the percentage of women in director roles meeting the Women Leaders Review targets, the headlines look great – but the persistent reality remains, that the glass ceiling for women in executive level positions is still stubbornly in place,” said Sue Vinnicombe, Professor of Women and Leadership at Cranfield School of Management.
“An ‘executive gender paradox’ across FTSE 250 boards has emerged, as the gap between the number of women in NED roles and executive roles grows.”
There is a major issue at play here, and we risk having too much optimism when we just look at the numbers
This year’s report also identifies a maternity bias, childcare policies and the male-dominated executive environment as factors that prevent women from securing the top roles.
She added: “Through their own tenacity, drive and experiences, some women do make it to the top positions, but once they get to the C-Suite they often find themselves unsupported and in a hostile, macho environment.
“To say that’s disappointing in 2024, 25 years on from when I started this report, is a huge understatement. It’s clear that many issues still must be addressed before we can really expect to see significant and meaningful changes in the numbers of women executive directors.”
As part of the 2024 report Cranfield conducted a special project to analyse the gender balance and experience of female CFOs across the FTSE 350, and found that there was a missed opportunity to increase the number of women in CFO positions in the past two years.
There were 28 outgoing CFOs across the FTSE 250 over the past year, but just three females were appointed to this role during the same period, taking the total number of female FTSE 250 CFOs to 23 (making up just 13% of all FTSE 250 CFOs).
Similarly, there were 29 outgoing CFOs across the FTSE 100 since 2022, with just eight females appointed to this role during the same period, taking the total number of female FTSE 100 CFOs to 24 (making up 24% of all FTSE 100 CFOs).
Female representation in the most influential roles is a key pillar of true gender parity, and we need to see growth across both non-executive and executive directorships
“There is a major issue at play here, and we risk having too much optimism when we just look at the numbers,” said Dr Michelle Tessaro, Visiting Professor at Cranfield School of Management who led on the special CFO research project.
“The most vulnerable part of the talent pipeline is the mid-career point, where women drop off their planned career trajectories as policies are stacked against them and assumptions made about their attitudes to work. This leaky pipeline needs fixing, and women need supporting, otherwise the Executive gender paradox will not change.”
Anna Anthony, EY UK&I Regional Managing Partner-elect and UK Financial Services Managing Partner, said: “In all its guises, diversity is a key driver of performance, and increasing female representation on boards is not a nice-to-have, but a must-have to tackle the growing challenges businesses face. Boardroom diversity targets are playing an important role in driving progress, but can’t alone drive the scale of change needed.
“Female representation in the most influential roles is a key pillar of true gender parity, and we need to see growth across both non-executive and executive directorships. Companies must do more to grow the pipeline, better support women to senior management and executive positions, and aim to go above and beyond minimum requirements.”