The Financial Reporting Council issued a consultation on changes to the Corporate Governance Code in light of recommendations by Lord Davies relating to gender diversity on boards. The FRC recommends two key changes to the Code, relating firstly to the work of the nomination committee and secondly to board evaluation procedures, and how each takes gender diversity into account.
The NAPF response to the consultation agrees with the two key changes, however argues that this should not be specifically limited to gender and such recommendations should also include such matters as international and professional diversity. The response also reaffirms the NAPF view that any increase in the number of women on boards should be through organisational development consistent with the company’s strategic objectives. This is as opposed to quotas or targets that may lead to box-ticking or tokenism and may come at the expense of board and company performance.