Seven FTSE 100 boardrooms without a single woman

Cable: "Doing nothing is not an option anymore”

Vince Cable has warned the seven remaining FTSE 100 companies without a single woman in their boardrooms that “doing nothing was not an option anymore”.

 In a letter sent to the chairman and chief executive of each business, he made clear that he wanted a “significant female presence” on every board by 2015.

There were 21 FTSE 100 companies solely directed by men at the beginning of the Coalition government two and a half years ago, but mining specialists Xstrata, Glencore, Kazakhmys, Vedanta and Antofagasta, chemicals manufacturer Croda and Melrose, which specialises in performance improvement of businesses, are still to make changes in the way they’re managed.

The Business Secretary added that it was “not about equality, [but] good governance and good business”, and that “diverse boards [benefit] from fresh perspectives, opinions and new ideas which ultimately serve the company’s long term interests”.

This announcement came five days after the World Economic Forum in Davos, Switzerland, held a panel about women in economic decision-making, where Christine Lagarde, head of the IMF, called for greater gender equality in companies.

She accused companies of only giving jobs to women when they are “a basket case, a lost cause”, and that gender diversity and inclusiveness were important for humanity, as well as business.

Out of the 2500 people who attended the conference, 83 per cent were male, which accurately mirrors reality, as women currently make up only 16 per cent of all FTSE boards.

Companies were also criticised for overturning the gender imbalance by simply appointing female non-executive directors, who arguably have less power and influence on a day-today basis.

Only 20 per cent of boards have female executive directors, and Burberry and Imperial Tobacco are the sole two FTSE 100 UK companies to be run by women – respectively Angela Ahrendts and Alison Cooper.

The European Commission proposed to resolve this by making it mandatory for companies to have 40 per cent female directors on their boards, but several EU nations, including the UK, are opposed to the idea.

UK ministers want companies to have at least one female director for every three men by 2015 but do not back quotas, preferring to encourage a voluntary approach.

A study published by Randstad UK last December showed that this opinion was shared by women currently working in business, with 73 per cent of respondents saying that “self-doubt” was the main reason for women holding back, and only 6 per cent backing compulsory quotas.

Vince Cable wants every FTSE board to have a significant women presence by 2015

Marie le Conte is a freelance journalist.

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How will Theresa May meet her commitment to low-earners?

The Prime Minister will soon need to translate generalities into specifics. 

The curtailed Conservative leadership contest (which would not have finished yet) meant that Theresa May had little chance to define her agenda. But of the statements she has made since becoming prime minister, the most notable remains her commitment to lead a government "driven not by the interests of the privileged few, but by yours." 

When parliament returns on 5 September, and the autumn political season begins, May will need to translate this generality into specifics. The defining opportunity to do so will be the Autumn Statement. Originally intended by George Osborne to be a banal update of economic forecasts, this set-piece more often resembled a second Budget. Following the momentous Brexit vote, it certainly will under Philip Hammond. 

The first priority will be to demonstrate how the government will counter the threat of recession. Osborne's target of a budget surplus by 2020 has wisely been abandoned, granting the new Chancellor the freedom to invest more in infrastructure (though insiders make it clear not to expect a Keynesian splurge).

As well as stimulating growth, Hammond will need to reflect May's commitment to those "just managing" rather than the "privileged few". In her speech upon becoming prime minister, she vowed that "when it comes to taxes, we’ll prioritise not the wealthy, but you". A natural means of doing so would be to reduce VAT, which was increased to a record high of 20 per cent in 2010 and hits low-earners hardest. Others will look for the freeze on benefit increases to be lifted (with inflation forecast to rise to 3 per cent next year). May's team are keenly aware of the regressive effect of loose monetary policy (low interest rates and quantitative easing), which benefits wealthy asset-owners, and vow that those who lose out will be "compensated" elsewhere. 

A notable intervention has come from Andrew Tyrie, the Conservative chair of the Treasury select committee. He has called for the government to revive the publication of distributional analyses following Budgets and Autumn Statements, which was ended by George Osborne last year (having been introduced by the coalition in 2010). 

In a letter to Hammond, Tyrie wrote: "I would be grateful for an assurance that you will reinstate the distributional analysis of the effects of the budget and autumn statement measures on household incomes, recently and mistakenly discontinued by your predecessor." He added: "The new prime minister is committing her government to making Britain a country that works 'not for a privileged few, but for every one of us'. A high level of transparency about the effects of tax and welfare policy on households across the income distribution would seem to be a logical, perhaps essential starting point." 

Whether the government meets this demand will be an early test of how explicit it intends to be in reducing disparities. 

George Eaton is political editor of the New Statesman.