A Leeds University Business School study was cited in a report detailing recommendations to increase the number of women on company boards.
The Davies report calls for companies to publish the number of women sitting on their boards and working in their organisations and recommends that businesses in FTSE 350 companies should set their own targets for increasing female representation on their boards by 2015. Lord Davies suggests that the FTSE100 should challenge themselves to increase the proportion of female directors on their boards to 25% by 2015. These recommendations have been welcomed by the Government.
The most recent report from the Cranfield School of Management on female representation in the boardroom found that in 2010 women made up only 12.5% of directors of the FTSE 100 companies and only 5.5% of FTSE 100 executive directors were women.
The Leeds University Business School study showed that having at least one female director on the board appears to cut a company’s chance of going bust by 20% and that having two or three female directors lowered the chances of bankruptcy even further.
The report has received some criticism in that it has not addressed the need for more flexibility regarding part-time roles.