The six month deadline from Lord Davies report imminent. Some progress but will it be enough to prevent EU intervention? August is set to be an important month for UK companies as the six month deadline set in last February’s Lord Davies report on diversity in the boardroom will occur on the 24th of this month.
The report said that companies must make clear what steps they will take to increase female presence in the boardroom or be prepared to explain why. According to recent research from the Cranfield School of Management, and following the report, FTSE 100 companies recruited 23 women to their boards this year, amounting to 13.9 percent in FTSE 100 companies, and representing 30 percent of total appointments for 2011. However, while progress has clearly been made, at this rate of adoption, it will still leave Britain short of the proposed EU Justice Minister, Vivian Reding’s goals for 30 percent by 2015, and 40 percent by 2020.
In July a group of headhunting firms got together to put together a voluntary code of practice, designed to assist compliance with the report, but it will require a massive shift in women’s appointments to boards to avoid the compulsory quotas that are a feature in some European countries and an increasing possibility imposed quotas for the UK should voluntary compliance not occur.
