By Max Clarke
In response to the Financial Reporting Council’s consultation ‘Gender Diversity on Boards’, which closes today (29 July), Miles Templeman, Director General of the Institute of Directors has commented.
“The IoD shares the concerns of the Government and Lord Davies regarding the relatively low numbers of women on the boards of UK listed companies. For this reason we are actively engaged in supporting, through training, mentoring and professional development, the participation of women in the boardroom and in senior executive roles, particularly through the IoD’s Chartered Director programme. However, the IoD believes that a further highlighting of gender diversity in the UK Corporate Governance Code would not be justifiable.
“Gender diversity is only one dimension — albeit an important dimension — of a board’s overall diversity profile. As well as gender diversity, diversity in terms of professional background, education, sector experience, nationality, age and personality may all be relevant in the composition of an effective board.
“Consequently, although we would welcome greater disclosure of how boards take into account diversity in their nomination procedures — including details of any applicable diversity policies — we believe that such disclosures should relate to diversity in its broader sense rather than to gender diversity alone.”