More women on boards or else, says Vince Cable

Companies were today threatened with “tougher measures” to force women on to boards if firms would not appoint them voluntarily.

The warning came from Business Secretary Vince Cable after two reports simultaneously raised concerns British firms had become complacent about giving women top jobs.

Lord Davies of Abersoch published his second progress report into the issue confirming that as of March 1 women accounted for 17.3% of all directorships at FTSE100 firms, up from 10.5% in 2010.

Meanwhile the Cranfield School of Management found that in the first half of the last financial year 44% of board appointments at FTSE100 firms went to women, 36% on FTSE250 companies.

But in the second half of the year progress slowed, to 26% and 29% respectively, raising questions over whether the target of making 25% of FTSE100 board members women by 2015 was achievable.

Mr Cable told the Standard: “I am working on the assumption that the figures released today by Cranfield are a temporary setback rather than the start of a downward trend.

“However companies should be under no illusion that Government will adopt tougher measures if necessary.”

Mr Cable said ministers continued to believe a voluntary led approach was the best way to bring equality.

But he went on: “Today’s report also serves as a timely reminder to business that quotas are still a real possibility if we do not meet the 25% target.”

Lord Davies was commissioned to look into the issue by the Government and first published a report in 2011.