Diversity

Age Diversity of Boards

The chart shows board age dynamics across sectors on NASDAQ and FTSE 350. Energy companies have fewer younger board members (39%), while banking and software sectors are more likely to include them (67% and 63%). Younger board members can boost innovation and monitoring effectiveness. FTSE 350 boards tend to be younger, likely due to post-COVID retirements, but this could create succession challenges as experienced executives exit, reducing diversity and experience on boards.

NASDAQ 53% and FTSE 55%

% of companies with a director younger than 50 years old

24

is the average age gap between oldest and youngest member of the board across NASDAQ

21

is the average age gap between oldest and youngest member of the board across FTSE 350

Gender Diversity of Boards

Gender diversity on NASDAQ and FTSE 350 boards remains limited, with only the Real Estate and Insurance sectors averaging over 30% female representation. This may be due to greater female talent in these sectors or deliberate efforts to enhance diversity, particularly in Insurance.

The low number of female board appointments in H1 2024 may stem from conservative hiring strategies or a lack of senior female talent interested in board roles.

Notably, women in their 50s have increasingly exited leadership positions at higher rates than men, driven by factors like unsupportive work cultures, menopause-related challenges, and greater family caregiving responsibilities.

Gender Diversity: Retention Issues for Women in Some Sectors

While the Insurance and Energy sectors have seen an influx of women, Financial Services and Technology have experienced a decline. More men are staying in leadership roles across sectors, suggesting cultural issues like male-dominated leadership and experienced women leaving for various reasons. The Financial Services and Technology industries may need to reevaluate their leadership practices to build more diverse teams.