Monday 9 July 2012
IMA: DIVERSITY IS NEEDED WITHIN BOARDS AND BETWEEN DIFFERENT BOARDS – ONE SIZE DOES NOT FIT ALL
In a written submission to the House of Lords* IMA says what investors want is an effective board that is the best fit for the company. Whilst quotas offer a quick fix to get women on boards they do not necessarily achieve a sustainable change.
One year after Lord Davies’ Review it is clear that the voluntary approach is working and there are an increasing number of women on boards. From 1st October 2012 listed companies will have to report annually on their policy on board diversity and the progress made. This will make a company’s commitment to diversity clear. The European Commission should re-assess the success of such voluntary measures in 3-5 years before considering quotas.
Liz Murrall, IMA Director of Corporate Governance and Reporting said:
“Diversity is needed and that is precisely why we oppose legislation. Different companies need different boards; you cannot prescribe the best fit. Boards need a mix of skills, experience, nationalities and gender.
“Voluntary measures are working and we are confident that Lord Davies’ target of 25% female representation on FTSE 100 boards by 2015 will be met as a result of the steps taken and now being taken.”
*House of Lords European Union Sub-Committee B: Call for Evidence on Gender Balance in the Boardroom. See our response here.
For further information please contact:
Mona Patel, Head of Communications
020 7831 0898 or 07834 089332
Navdeep Sidhu, Press Officer
020 7831 0898 or 07843 517 618
Christina Bridge, Press Assistant
020 7831 0898
About the Investment Management Association:
• The IMA is the trade body for the UK's £3.9 trillion asset management industry (retail and institutional) which is one of the world's leading investment management centres.
• Our role is to represent the interests of the asset management industry to government and regulators both in the UK and internationally.
• The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.