Women in more profitable UK boardrooms

Women are continuing to break through the 'glass ceiling' of British business, according to the latest survey of UK directors.

The survey by business analysts Experian found that female directors are also more likely to be involved in profitable businesses – 57.6% of all female directors are involved in companies that make a profit, compared to 56.1% of male directors.

Women now make up 23% of all directors in the UK, a slight increase on the 2005 ratio. The survey found most are likely to be in involved in companies relating to education, health, social work, hospitality and leisure. However, at the other end of the scale, the glass ceiling is still firmly in place in Britain’s utilities companies, with 9.1 male directors to every one female director.

Female directors tend to be more entrepreneurial by nature and are more likely to be in charge of small to medium sized businesses employing up to 50 people while men continue to control large corporations.

Richard Lloyd, Managing Director of Experian’s Business Information division, said: “Men may still dominate boardrooms across the UK, but women are continuing to redress the balance, and often control companies which are more profitable. It’s refreshing to see that in some parts of Britain, women now outnumber their male counterparts in the boardroom, though there are still no industry sectors where this is the case. The glass ceiling may still be in place for the UK’s female directors, but the cracks we identified in last year’s research seem to be widening.”

Only 6,740 women are directors of companies employing more than 250 people compared to 53,524 men, although women are making progress with 633 (10%) more directors in the board rooms of large businesses than in 2005. Female directors are also more likely to run companies defined as small by turnover, with 98% of female directors working in companies with a turnover of less than £5.6 million per annum.

Experian’s research reveals that the majority of directors are typically aged between 40 and 49, accounting for more than 1.2 million of the UK’s directors (30%).

The highest ratio of female directors to male directors is in the South West (only 2.8 male directors to every one female), Wales and Northern Ireland (three male directors to every one female).

Men dominate the boardroom most in London, where there are 3.8 male directors to every one female director.

(SP/KMcA)