Dated: 5 May 2011
Commenting on the publication today of the Financial Reporting Council’s (FRC) consultation on whether the UK Corporate Governance Code should be revised to require listed companies to publish their policy on gender diversity in the boardroom and report against it annually, Miles Templeman, Director General of the Institute of Directors, said:
“Adding further requirements to the UK Corporate Governance code in respect of gender diversity would not be a positive development. The Code already states that board candidates should be appointed on merit, against objective criteria and with regard for the benefits of diversity on the board, including gender. Further requirements in terms of gender diversity policy will increase the risk that the Code becomes viewed as a list of political requirements for listed companies rather than a guide to improved effectiveness.
“We agree absolutely that a greater diversity of people on boards in general is necessary, and this clearly means we need more female directors. But the way to do this is to increase the pool of female senior executives from which directors can be recruited. Improving flexible working opportunities for aspiring female executives will be central, with companies rather than government taking the lead in creating these opportunities. Appropriate director development and mentoring activities – tailored to the specific needs of women – could also contribute a great deal.”
To see the FRC consultation on gender diversity in the boardroom, click here: http://www.frc.org.uk/press/pub2574.html
