Most top companies miss deadline for women on boards commitment

A report by Pinsent Masons, the law firm behind Out-Law.com, revealed that eight of the top 100 companies pledged to ensure that women made up a quarter of boards.

It found that a further 12 companies have already reached that 2015 target, though they have made no future commitment, and that 32 companies have reached the target for 2011.

Lord Davies recommended that the chairmen of the FTSE 350 leading companies by share capital should set out the percentage of women they aim to have on their boards in 2013 and 2015, with the top 100 companies aiming for at least 25% female representation by 2015.

The Pinsent Masons report analysed announcements from the UK's 100 richest companies including annual reports, press statements and employee diversity pages explained Martin Webster, a corporate governance expert with Pinsent Masons.

It found that of those 100 companies, only eight had formally announced that they intend to meet Lord Davies' targets despite the former trade minister asking companies to state their intentions by the end of August.

Marks and Spencer and Centrica have already met the target. A further 12 companies have already reached or exceeded the recommended figure but have not announced any intention to maintain levels, the study said.

An additional 32 companies have between 15% and 25% female directors, meaning that 46 of the FTSE 100 have already reached where Davies intended them to be by the end of 2011, the report says.

Webster pointed out that there has been an increase in women appointed to FTSE 100 boards since Davies' report, from 12.5% representation to 14.3%.

"Whatever the solution, it is clear that boards are going to have to be more transparent about the way they select their new directors, and if they don't use open recruitment methods such as search consultants or advertising they are going to have to explain why," said Webster.

The Davies Report highlighted the experience of other countries on improving gender diversity in the boardroom. It pointed out that when Norwegian companies failed to meet a target of 40% female representation on boards by 2005, legislation was passed with the threat of fines or closure for non-compliance. The target was achieved by 2009. Spain, France and Sweden have discussed or implemented similar provisions.

EU Justice Commissioner Viviane Reding has also asked all companies to pledge to have at least 30% female board members by 2015 and 40% by 2020.