Prominent FTSE-100 directorships boost further boardroom opportunities for men but hold women back

• Women FTSE-100 directors more likely to obtain additional director roles than men, but the gap lessens and eventually flips in companies higher up the index
• Analysis suggests contrasting informal demands and scrutiny between men and women in top firms as reasons, rather than capacity constraints or discounting of women’s achievements

Women directors at Financial Times Stock Exchange (FTSE-100) companies receive more additional board appointments than their male counterparts, but men within the index’s most prominent firms continue to hold the upper hand in career progression, according to new research co-authored by Bayes Business School.

Boardroom gender diversity has increased, with corporate governance measures encouraging companies to recruit more women directors. Women with board experience at FTSE-100 companies have therefore become highly sought-after for roles on other boards.

The study, authored by Hans Frankort, Professor of Strategy at Bayes, along with Isabel Fernandez-Mateo from London Business School and Raina Brands from University College London, suggests that while women directors within the whole index are indeed more likely to be appointed to additional board positions, the advantage lessens and eventually flips in favour of males at the most prominent firms.

The research examined the population of directors serving on FTSE-100 boards between 2010 and 2017, and their respective movements, testing variables such as gender and firm prominence as measured by market cap and ranking within the index. Interviews were also held with non-executive directors and board-level recruiters for additional context.

Key findings from the research showed:

• On average, women are around 60% more likely than men to receive an additional board appointment (4.8% and 3% respective probabilities)
• From bottom to top of the FTSE-100 index, chances of additional appointments increase for males by around 140%, whereas women see a fall in the likelihood of additional appointments by as much as 80%

Findings did not support claims that firms perceive women to be less competent or that they face greater capacity constraints than men. Instead, the research suggests women encounter greater informal demands to fulfil organisational roles and they encounter more scrutiny. This in turn can hinder their capacity and appetite to pursue additional boardroom positions.

Professor Hans Frankort said:

“The Lord Davies Review of 2011 recommended FTSE-100 boards aim for a minimum 25% women representation, which has since been revised upwards.

“Although our research suggests steps are being taken to bring more women into the boardroom, and that FTSE-100 companies on the whole provide launchpads for further gender diversity, the main beneficiaries at the most prominent companies are men.

“Prominent FTSE roles at board level can open doors to further directorship opportunities, but heightened scrutiny and informal demands affect men and women differently.

“Broader awareness of the subtle ways in which gender inequality persists even at the top of the corporate landscape is an important first step towards addressing gender differences in career trajectories.”

‘Unequal in the spotlight: gender differences in how serving on prominent firms affects directors’ new board appointments’ by Professor Hans Frankort, Professor Isabel Fernandez-Mateo and Professor Raina Brands, is newly published in Administrative Science Quarterly.

Notes to Editors

1. The sample was developed from scratch using a range of resources, including Bloomberg, BoardEx, Thomson Reuters and other web searches.
2. The sample period was from between 2010 and 2017, capturing 150 unique firms and 1,961 directors, with a sample of 7,597 director-years.
3. To supplement quantitative findings, interviews were conducted with 14 non-executive directors and expert board-level recruiters.