- AJ Bell figures ahead of International Women’s Day show female CFOs outnumber female CEOs by more than 2:1 in FTSE 100 companies.
- Only four FTSE 100 companies have both a female CEO and CFO.
- More progress needs to be made on boardroom diversity
“There are more than twice as many female chief financial officers as female chief executives in FTSE 100 companies,” says Danni Hewson, head of financial analysis at AJ Bell. “The fact nearly a quarter (24) of the FTSE 100 has a female in charge of their finance department shows progress is being made on UK boardroom diversity. Fourteen of these individuals have been in their current roles for two years or less.
“However, the fact only 10 females are CEOs of FTSE 100 companies is disappointing. There are no hard rules regarding gender for London-listed companies but there have been voluntary, business-led campaigns in recent years to encourage both gender and racial diversity.
“Boards should judge candidates based on their abilities, ideas and qualities. They must avoid the temptation to appoint the person with the biggest number of leadership roles on their CV as the strongest candidate might be someone who has not been given the opportunity in the past to step up. Ultimately, boards and hiring committees need to think more broadly when selecting candidates.”
Source: AJ Bell, Company announcements. Correct as of 5 March 2024. Excludes changes announced but not yet implemented.
“CFOs need to know a business inside and out to understand the flow of money and where there are opportunities to make changes that will benefit the business. This in-depth involvement with strategy and execution means they are often candidates for a CEO role when the opportunity arises. For example, Vodafone CEO Margherita Della Valle was previously CFO for five years before getting the top job.
“Amanda James is the longest-serving FTSE 100 female CFO still in the role, having been in charge of the retailer’s finances since April 2015, although she is leaving in July. The next longest serving are Katie Murray at NatWest and Sally Lake at Beazley, both of whom have been in their CFO positions since 2019. Lake plans to step down shortly.
“Liv Garfield has been CEO of Severn Trent since April 2014, making her the longest-running female FTSE 100 CEO still in the role. She is followed by Emma Walmsley from GSK who is about to celebrate seven years running the pharmaceutical group.
“Allison Kirkby is the newest member of the club, having recently been appointed BT’s first female CEO in its 178-year history. This is not her first stint as a CEO, however, as she previously ran Swedish telecoms group Telia.
“Only four FTSE 100 companies have both a female CEO and CFO: Aviva, Diageo, GSK and Severn Trent.”
