The 2025 FTSE Women Leaders Review has delivered a sobering assessment of gender representation within the UK’s most senior financial roles. Although women have made considerable strides in securing board positions across the FTSE 350, with representation now standing at 43%, the finance function tells a markedly different story.
The data exposes a troubling reality: just 22% of Finance Director positions are held by women, a figure that has remained largely static despite years of diversity initiatives and corporate commitments. This disparity becomes even more pronounced when considering that finance roles often serve as crucial stepping stones to chief executive positions, potentially creating a pipeline problem for future female leadership.
The Alternative Board UK (TAB) has seized upon these findings to spotlight the broader challenges facing women in senior financial positions, particularly within smaller and privately owned businesses where external pressures for diversity may be less pronounced. The organisation’s 15 years of experience working with business leaders across the UK provides valuable insight into the structural barriers that continue to impede progress through its peer advisory boards and executive coaching programmes.
The boardroom paradox
The contrast between overall board representation and finance-specific roles reveals a complex landscape of progress and stagnation. Whilst companies have successfully diversified their board compositions, the specialist nature of finance director roles appears to present unique challenges for female advancement.
The review’s recommendation that all FTSE 350 companies appoint at least one woman to the four most senior roles—Chair, Senior Independent Director, CEO, or Finance Director—by the end of 2025 acknowledges the urgency of addressing this imbalance. However, the finance function’s resistance to change suggests that targeted interventions may be required beyond general diversity initiatives.
Several companies have demonstrated that significant female representation is achievable, with Diageo PLC, Auto Trader Group, and Severn Trent achieving over 65% female board representation. These organisations provide evidence that substantial progress is possible when companies commit to meaningful change rather than tokenistic appointments.
The SME challenge
Mags Fuller, co-founder and finance director at TAB, emphasised the particular challenges facing smaller businesses. “The figures in this year’s FTSE Women Leaders Review are a reminder that while progress is being made in large, listed companies, the picture in privately owned and smaller businesses is often more challenging,” she observed.
The organisation’s work with thousands of business leaders has revealed that women remain underrepresented at board level in many SMEs, particularly in Finance Director roles. Unlike their listed counterparts, these businesses may not face the same external pressures to diversify, creating an environment where traditional appointment patterns persist unchallenged.
This reality presents a significant challenge for the broader economy, as SMEs represent the vast majority of UK businesses and employ millions of people. The failure to tap into female talent at senior levels not only limits individual opportunities but also restricts the potential for innovation and growth across entire sectors.
Building pathways to progression
The persistence of gender imbalance in finance roles suggests that traditional approaches to diversity may be insufficient. Fuller highlighted the need for more comprehensive support systems: “We need to do more to support women in seeing finance as a long-term career path and help them build the skills and confidence to step into senior roles.”
The organisation’s peer board model offers one potential solution, bringing together non-competing business owners and leaders in confidential settings to share insights and solve challenges. This approach fosters not only business growth but also leadership development, creating environments where women can build the strategic confidence necessary for senior roles.
The company has introduced behavioural profiling workshops, strategic planning programmes, and its Business Builder’s Blueprint to help members develop more balanced leadership teams. These tools address the systemic issues that may prevent women from progressing to senior finance positions, including confidence building and skill development.
The business case for change
The underrepresentation of women in finance leadership roles carries implications beyond simple equality metrics. Fuller noted the impact that inclusive leadership can have on business success, drawing on the organisation’s experience of helping businesses grow over 15 years.
The peer board model’s success in fostering growth across multiple dimensions—business outcomes, leadership capacity, and team development—demonstrates the tangible benefits of diverse leadership. Companies that fail to harness female talent in senior finance roles may find themselves at a competitive disadvantage as the business environment becomes increasingly complex and demanding.
The review’s findings serve as both a milestone and a call to action. Whilst progress in overall board representation should be celebrated, the persistent gender gap in finance leadership roles demands focused attention and innovative solutions. The path forward requires not only commitment from individual companies but also industry-wide recognition that true diversity extends beyond headline representation figures to encompass all critical leadership functions.