Gender balance | Diversity in leadership is improving - but it's still not enough

A new report from global executive search firm Heidrick & Struggles has revealed that a record number of Board seats went to women in 2021. While this development is welcomed, closer analysis shows that more work needs to be done if gender equality in leadership – as well as the workplace more generally – is to be achieved.

Heidrick & Struggles 2022 “Board Monitor” looked at FTSE350 companies and found that 54% of new Board seats went to women. However, closer analysis by businessleader.co.uk found that only 19% of the four roles highlighted by the FCA as particularly influential (CEO, CFO, Chair or Senior Director) are held by women. The leading executive positions are still very much male-dominated.

It's a similar picture with regard to progress made in ethnically diverse representation; the Board Monitor analysis found that the number of Black, Asian or other ethnic minority board members increased from 59 to 131 in 2021. However, none of the FTSE350 board chairs appointed last year were non-white.

Businessleader.co.uk also noted that the reason for the large number of female appointments could be because businesses are trying to get ahead of the curve with regard to the upcoming FCA regulation, likely to be implemented in 2025, which requires half of senior leadership appointments to be women. Currently, businesses are required to explain why they fail to meet the FCA’s positive diversity targets, which include the following requirements: