The number of women holding top executive roles in Britain’s largest companies has declined for the first time in eight years, raising concerns about the pace of gender parity in corporate leadership.
According to the 2024 Women Count report by The Pipeline, the proportion of women on executive committees in FTSE 350 companies dropped to 32% in 2024, compared to 33% the previous year.
While this might seem like a small decline, it highlights a broader trend of stagnation in corporate gender equality.
This setback could delay the achievement of gender parity by another five generations, putting pressure on businesses to take more proactive measures.
2024 sees drop in female executive representation
The 1% drop in women on executive committees might not appear significant, but it reflects a worrying trend of gender imbalance.
Women continue to be underrepresented in key decision-making roles, such as chief executive officer (CEO) and chief financial officer (CFO) positions.
The report reveals that only 9% of CEOs and 18% of CFOs in FTSE 350 companies are women, compared to the 44% representation of women in chartered accountant roles.
Despite the progress made in some areas, such as board diversity, female executives are still struggling to secure leadership positions that have direct financial accountability and influence over company direction.
Another concerning statistic is the decline in women holding commercial roles that could lead to CEO or CFO positions.
The proportion of women in these profit-and-loss accountable roles has fallen from 20% in 2023 to just 19% in 2024.
These positions are crucial stepping stones for women aiming for top executive roles, and the drop signals a deeper issue in creating pathways for female leadership.
Profitability linked to gender parity in the workplace
The business case for gender parity in corporate leadership is clear.
According to The Pipeline’s report, companies with balanced gender representation on executive committees are 22% more likely to experience improved profits.
Many organisations continue to overlook the untapped potential of female talent in decision-making roles.
Business leaders and headhunters must take urgent action to close the gender gap and create work environments where women can thrive and progress to senior roles.
Britain lags behind its gender parity targets despite earlier successes
This reversal in female representation follows the UK government’s earlier claim that Britain was leading the way in gender diversity, with women holding 40.2% of board positions in the top 350 listed companies in 2023.
These board positions are often non-executive roles, with limited influence on a company’s day-to-day operations and financial outcomes.
The current decline in women holding executive positions reveals a gap between symbolic representation and actual decision-making power within corporate Britain.
Call to action
To prevent further backsliding, businesses need to focus on creating inclusive cultures that support women at all stages of their careers.
Geeta Nargund, chair of The Pipeline, has urged companies to take advantage of the vast pool of female talent and implement strategies to foster gender diversity at the executive level.
This includes offering flexible working arrangements, addressing unconscious bias, and developing leadership programmes tailored to help women progress into senior roles.
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