Vice Cable Launches New Head Hunting Code
UK business secretary Vince Cable has introduced a new code of conduct aimed at head hunters which he hopes will support more female appointments to the boards of FSTE 350 boardrooms. The new code, titled the Enhanced Voluntary Code of Conduct for Executive Search Firms is an improvement to the voluntary code of conduct that was created in 2011. To date, 70 firms have signed up for the voluntary.
The updated code of conduct is a response to the Sweeney review, an independent review published in February 2014. The review called for changes to recruiting that would promote gender diversity not just in executive roles, but also in non-executive positions.
The new provisions will ask firms to provide evidence that they have achieved a target of at least 33% female appointments to their FTSE 100 and FTSE 250 boards. It will also ask firms to submit summary data relating to their recruiting efforts. Firms which want accreditation under the enhanced code must submit this data. They will also be encouraged to signal their commitment to gender diversity by publishing information about their policies on their websites, promoting it in discussions with clients, and publishing data on their track records.
Currently, all companies in the FTSE 100 have at least one woman serving on their boards, and companies across the index as a whole are growing closer to achieving Lord Davies' target of 25% representation for women on FTSE 100 boards before the deadline of 2015.