Promote Women or Face Board Quotas, Cameron Tells Companies
U.K. companies may face quotas unless they promote more women to board level, Prime Minister David Cameron warned, saying businesses are “failing” the economy by not having enough females in senior positions.
From Business Week:
Appointing women as directors and encouraging them as entrepreneurs is “about quality, not just equality,” Cameron said at a meeting of the Northern Future Forum in Stockholm today.
“The case is overwhelming that companies are run better if we have men and women alongside each other,” Cameron said in a round-table discussion. “If we can’t get there in other ways I think we have to have quotas.”
The U.K. is working to implement the recommendations of a February 2011 report by Mervyn Davies on increasing the number of women on boards, it said in a submission to the meeting. As a result, women now make up 15 percent of directors of companies in the benchmark FTSE 100 Index, up from 12.5 percent last year, and there are now only 10 all-male boards in the FTSE, down from 21 last year.
Starting in October, as a result of a new provision in the U.K. corporate-governance code, companies will have to report on their policy for boardroom diversity and how they are making progress in delivering it.