Transparent appointment process vital for change

THE selection of competent women to join the governing ranks of the UK’s largest companies is being held back because they don’t “fit” with the mostly male boards, a new report out today reveals.

Selection processes ultimately favour candidates with similar characteristics despite awareness among chairmen and search firms that gender diversity needs to be increased at board level, the Equality and Human Rights Commission says.

Search firms have introduced a voluntary code of conduct and had some success at getting more women on long lists. But when it comes to short-listing and appointing, successful candidates tend to be those who are perceived as “fitting in” with the values and behaviours of existing board members, largely men.

The report calls for a more transparent, professional and rigorous approach to the selection process.

Baroness Prosser, deputy chairwoman of the Equality & Human Rights Commission said: “Research shows that diverse boards produce better performance. Many companies recognise this. We commissioned this report to support their efforts to improve the representation of women at board level.

“However, the often subjective way of making appointments ends up replicating existing boards, rather than bringing in talented women who could bring real benefits to individual company performance and ultimately help Britain’s economic recovery.”

Dr Elena Doldor, senior research fellow from the Cranfield International Centre for Women Leaders and lead author of the report, said: “Despite increased awareness of the need to diversify boards, there are still default preferences for candidates with certain backgrounds.”

The report follows the recent Davies Review which called upon executive search firms to take on a more active role in increasing gender diversity on FTSE boards.