Decline In Number Of Female Executives On FTSE 250 Boards

The number of women holding executive directorships on FTSE 250 boards has fallen 11% in the last two years, from 47 in 2022 to 42 in 2024, according to Cranfield University’s latest Female FTSE Board Report, supported by EY. The decline comes despite overall female representation on FTSE 250 boards continuing to rise, and means women now represent just 12% of executives across these companies.

Now in its 25th year, the Female FTSE Board Report research found that 42% of overall directorships on FTSE 250 boards are currently held by women – an increase of 3% from 2022. 174 FTSE 250 companies have at least 40% females on their board, meaning 70% have now met the Women Leaders Review target.

Of the 793 women holding directorships on FTSE 250 boards in 2024, just ten are Chief Executive Officers (CEOs) (a 17% decline from 2022), 23 are Chief Financial Officers (CFOs) (12% decline from 2022), 35 are Chairs (unchanged from 2022), and 125 are Senior Independent Directors (50% increase from 2022). This means the increase in female representation in directorships on FTSE 250 boards was solely driven by women in NED roles.

Sue Vinnicombe, Professor of Women and Leadership at Cranfield School of Management, who has overseen the Female FTSE Board Report since 1999, commented:

“With the percentage of women in director roles meeting the Women Leaders Review targets, the headlines look great – but the persistent reality remains, that the glass ceiling for women in executive level positions is still stubbornly in place."

"An ‘executive gender paradox’ across FTSE 250 boards has emerged, as the gap between the number of women in NED roles and executive roles grows."

“Through their own tenacity, drive and experiences some women do make it to the top positions, but once they get to the c-suite they often find themselves unsupported and in a male dominated environment. To say that’s disappointing in 2024, 25 years on from when I started this report, is a huge understatement. It’s clear that many issues must still be addressed before we can really expect to see significant and meaningful change in the number of women executive directors.”

Female executive directors on FTSE 100 boards rises, but remains concerningly low

Across the FTSE 100, 74 companies have met the target of having 40% women on their boards. 43% (450) of FTSE 100 directorships are held by women, however, just ten are CEOs, 24 are CFOs, 165 are Chairs, and 409 are non-executive directors. Just 36 companies in the FTSE 100 have women in executive director roles.

Anna Anthony, EY UK&I Regional Managing Partner-elect and UK Financial Services Managing Partner, comments:

“In all its guises, diversity is a key driver of business performance, and so increasing female representation on boards is not just a ‘nice-to-have’, it’s a ‘must-have.’ Boardroom diversity targets are playing an important role in driving progress but can’t alone drive the scale of change needed."

“Female representation in the most influential roles is a key pillar of true gender parity, and we need to see growth across both non-executive and executive directorships. Companies must do more to grow the pipeline, better support women to senior management and executive positions, and aim to go above and beyond minimum requirements.”

Opportunity missed to build female CFO numbers

As part of the 2024 report, Cranfield analysed the gender balance and experience of female CFOs across the FTSE 350 and identified ‘missed opportunities’ to increase the number of women in CFO positions over the last two years.

There were 28 outgoing CFOs across the FTSE 250 over the past year, but just three women were appointed to these roles during the same period, taking the total number of female FTSE 250 CFOs to 23 (making up just 13% of all FTSE 250 CFOs). Similarly, there were 29 outgoing CFOs across the FTSE 100 since 2022, with just eight women appointed over the same period, taking the total number of female FTSE 100 CFOs to 24 (making up 24% of all FTSE 100 CFOs).

Dr Michelle Tessaro, Visiting Professor at Cranfield School of Management who led the CFO research project, comments:

“There is a major issue at play here, and we risk having too much optimism when we just look at the numbers. The most vulnerable part of the talent pipeline is the mid-career point, where some women drop off their planned career trajectories as policies are stacked against them and assumptions are made about their attitudes to work."

"This leaky pipeline needs fixing, and women need supporting, otherwise the executive gender paradox is unlikely to change.”