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A government-commissioned review has called for 25 per cent female board representation by 2015, but has not advocated mandatory quotas.
Former trade minister Lord Davies of Abersoch, who led the official review for the government, has called on FTSE 350 companies to increase the percentage of female representation at the board table to 25 per cent by 2015.
Lord Davies said all heads of boards should announce their goals for increasing female board representation within the next six months and stick to them, or explain why they had not done so.
However he did not impose quotes, unless voluntary measures fail.
The former minister said: "Currently 18 FTSE 100 companies have no female directors at all and nearly half of all FTSE 250 companies do not have a woman in the boardroom.
"Radical change is needed in the mindset of the business community if we are to implement the scale of change that is needed."
In his report, Lord Davies also recommends that companies advertise non-executive board positions to encourage greater diversity in applications.
Headhunting firms were also pressed to draw up a voluntary code of practice encouraging gender diversity in board level appointment.
And the report called on the Financial Reporting Council to amend the UK Corporate Governance Code to require listed companies to establish a policy concerning boardroom diversity.
Business secretary Vince Cable said he welcomed the report and that he is committed to promoting gender equality on the boards of UK listed companies.
He said: "The report is clear that a business-led approach is the best way to increase the number of women on company boards, and we will therefore engage with business in considering his recommendations.
"Likewise we encourage regulators, investors and executive search firms to take forward those recommendations that fall to them."
Home secretary and minister for women and equality Theresa May said: "Women make up more than half of the population, but account for just 12.5 per cent of FTSE 100 directors.
"Lord Davies' report is an important step forward in understanding why this is and what can be done about it, and I shall be considering his findings very carefully."
Article Comments
The evidence is that diverse boards can be more effective but too frequently directors are drawn from too narrow a pool. At present many female candidates do not seem to appear 'on the radar' of recruiters. The 30 per cent Club, a group of chairmen and organisations committed to bringing more women onto UK Corporate boards, is doing good work to raise awareness of the importance of this issue.
Liz Murrall, director of corporate governance and reporting, Investment Management Association
24th Feb 2011 at 4:27 pm
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