By Geeta Nargund
The FTSE Women Leaders Review, published in February 2025, found that women occupy more than two in five seats on the boards of Britain’s biggest listed companies, putting the UK second in the G7 league table.
Understandably, this was heralded as a sign of progress, and it is encouraging that the proportion of women on boards has increased. However, these figures disguise an important truth – the number of women in decision-making positions of executive leadership is declining, not increasing.
To paint a clearer picture of gender parity at the top, a better metric is the proportion of women on executive committees. These are the roles where the operational power for a business lies – and are therefore where real change can happen.
Female representation in executive committee roles in the FTSE 350 has fallen for the first time in eight years, according to the 2024 Women Count report, published by The Pipeline, a gender diversity consultancy which I chair.
The FTSE Women Leaders Review’s own report shows that just 29% of women hold these roles. The reality is that while more women may be at the table, fewer are now in the driving seat. So, whilst we should welcome the fact that the proportion of board positions held by women at FTSE 350 companies rose to an all-time high of 43.4% last year, up from 42.1% in 2023, we should not pretend this is the complete story.
It is also worth noting that just 9% of CEOs in the FTSE 350 are women, a figure which has only increased twice in eight years. Only 18% of CFOs are women – despite women making up over 44% of chartered accountants. Fewer than one in five commercial roles in the boardroom are occupied by women, a drop from the 2023 Women Count report. This is particularly concerning as these are key feeder roles to CEO and CFO positions.
We should acknowledge the progress that has been made for women at all levels of business, particularly in the boardroom – but in doing so, we must recognise how far away we still are from true gender parity and equity for women. The historic gains we have made are fragile.
A recent news report found that some of the Big Four accounting firms look set to miss their UK or global gender diversity targets. The excuse seemed to be that this “takes time”. That is not acceptable, and business leaders need to be held accountable.
Businesses that have gender-inclusive cultures and equal employment policies are over 60 per cent more likely to have improved profits and productivity than those who don’t.
Gender parity means economic prosperity, and so fair representation is not just a ‘nice to have’ or a tick-box exercise – it is a business imperative.
Alongside promoting and investing in female leadership, changes to improve workplace conditions – such as flexible working and parental leave policies – will be essential in helping women to progress. Employers also need to make talent reviews more inclusive because research has shown that, on average, women are given lower potential ratings and higher performance ratings than their male colleagues, affecting their promotion prospects.
The Pipeline’s four recommendations to drive gender diversity in the boardroom are:
- Lead From the Top: business leaders must link gender parity to business strategy, actively demonstrating their personal commitment and sponsoring and promoting more women
- Fix The Culture: Workplaces must accommodate unique life changes which many women experience, such as woman-specific health issues
- Drive Accountability: Businesses must ensure they are capturing robust, clear data to make the leadership accountable for driving progress
- Don’t Declare Victory Too Soon: Businesses cannot afford to call time on DEI processes, as it will only undermine previous progress
The final point has never felt more urgent. Nearly one in two Britons believe “things have gone far enough” when it comes to gender parity, according to research in 2024 by King’s College London and Ipsos coinciding with last year’s International Women’s Day.
About the author
Geeta Nargund is chair of The Pipeline, a gender diversity consultancy.
