Essential Corporate News – Week ending March 3, 2023

FTSE Women Leaders Review: Achieving Gender Balance

On February 28, 2023 the FTSE Women Leaders Review (successor to the Hampton-Alexander Review and the Davies Review) published its latest report. This is an independent, voluntary and business-led initiative supported by the Government, aimed at increasing the representation of women on FTSE 350 boards and in their leadership teams. For the first time data from the top 50 largest private companies is included in the report.

Key statistics are as follows:

Women on boards – 2022 progress

Reported numbers for women on boards of FTSE 350 companies, as of January 11, 2023 are as follows:

• FTSE 100 is at 40.5%, up from 39.1% in 2021.
• FTSE 250 is at 40.1%, up from 36.8% in 2021.
• FTSE 350 is at 40.2%, up from 37.6% in 2021.
• The UK’s 50 largest private companies, 31.8%.
• The number of women in the Chair role has increased to 55 across the FTSE 350, up from 48 in 2021. Now almost one in six FTSE 350 companies have a woman Chair.
• The number of women Senior Independent Directors (SID) has increased to 130 across the FTSE 350, up from 115 in 2021. Now more than one in three FTSE 350 companies have a woman SID.
• The number of FTSE 100 CEOs is 9 (9%) and the number of women FDs has increased from 16% in 2021 to 23% in 2022.

Women in leadership – 2022 progress

Reported numbers for women in leadership (defined as the Executive Committee and Direct Reports to the Executive Committee on a combined basis), as at October 31, 2022 show:

• FTSE 100 is at 34.3% up from 32.5% in 2021.
• FTSE 250 is at 32.8% up from 30.7% in 2021.
• FTSE 350 is at 33.5% up from in 31.5% in 2021.
• 50 of the largest UK private companies is at 34.3%.

Recommendations

The four recommendations, which set expectations and aspirational goals for the next, and anticipated final stage in the journey to gender-balanced boards, and gender-balanced leadership teams by the end of 2025, remain as follows:

• Increased target aiming for gender balance recommendation: The voluntary target for FTSE 350 boards, and for FTSE 350 leadership teams is increased to a minimum of 40% women’s representation, by the end of 2025.
• Women in the most senior board and leadership roles recommendation: FTSE 350 companies should have at least one woman in the Chair or SID role on the board, and/or one woman in the CEO or FD role in the company by the end of 2025.
• Locking in progress on FTSE 350 boards recommendation: Key stakeholders, such as the investment community and corporate governance agencies should continue to set best-practice guidance, or have in place alternative mechanisms as appropriate, to encourage any FTSE 350 board that has not yet achieved the 33% target for 2020, to do so.
• Encouraging progress across a wider spectrum of British business recommendation: The scope is extended beyond FTSE 350 companies to include the largest 50 private companies in the UK by sales (note that private companies includes private equity owned companies, partnerships, entrepreneur/ founder owned, family owned or companies owned directly by management and staff). This will provide consistency of regulatory approach and drive further progress across British business.

(FTSE Women Leaders Review – Achieving Gender Balance, 28.02.2023)

(FTSE 350 hits boardroom gender balance target three years early, 28.02.2023)

HM Treasury: Centre for Finance, Innovation and Technology launched

On February 28, 2023 HM Treasury announced the formal launch of the Centre for Finance, Innovation and Technology (CFIT). Backed by £5.5 million of Treasury and City of London Corporation funding,  the CFIT is seeking to boost growth and innovation in the UK’s fintech sector.

The CFIT has been established in response to Ron Kalifa’s Review into UK fintech. Since the Kalifa Review was published in 2021, the UK government has been working across industry and regulators to deliver on its recommendations, including introducing a fast-track visa system for fintech scale ups and implementing an FCA scale box allowing innovators to trial new products.

The ambition for CFIT is to ensure the UK can be a leader not only for fintech start-ups, but also the best place in the world to scale a business and take solutions from IP creation through to widespread adoption. Successful implementation of CFIT should then drive job creation across the UK, achieve  global reach, and provide better financial outcomes for consumers and SMEs.

(HM Treasury, New national hub for fintech to be launched at Leeds event, 28.02.2023)