Boardrooms Still Missing Women in Finance

According to the 2025 FTSE Women Leaders Review, women now hold 43% of board positions across the UK’s top 350 companies. However, within this broader picture, financial leadership roles continue to show lower levels of female representation. Just 22% of Finance Director positions are currently held by women, a figure that has remained relatively consistent over recent years.

While companies such as Diageo PLC, Auto Trader Group and Severn Trent report over 65% female representation on their boards, financial roles in general appear to be slower to shift compared to other leadership positions.

This pattern is not limited to listed companies. It is also reflected, to varying degrees, across the SME sector, which represents a significant part of the UK economy.

SMEs and the wider context

At The Alternative Board UK (TAB), we work with a wide range of business owners and senior leaders across the SME landscape. In these environments, leadership structures are often shaped by evolving business needs and the constantly changing challenges common in HR and operations.

This has wider implications, as finance is often a core strategic function. Where women are not represented, opportunities to contribute to wider decision-making may also be affected.

For many SMEs, financial leadership is not just about managing budgets or reporting figures. It plays an important role in shaping direction, assessing risk, and identifying growth opportunities. The presence of women in these positions can help broaden strategic thinking and bring valuable insight to the table.

Confidence, visibility and support

The reasons behind the gap are varied. Confidence, visibility and access to opportunity all play a part. For some, finance may not appear to be an obvious route into leadership, especially in smaller businesses where individuals may be managing a variety of responsibilities. Without established role models or support networks, it can be harder to see a clear pathway forward.

These barriers can sometimes be less visible than structural challenges, but they are no less significant. Creating environments where individuals feel encouraged and equipped to step into senior roles can make a lasting difference.

At TAB, we are proud to support business leaders from all backgrounds through peer advisory boards and executive coaching. Over the past 15 years, we have seen how diverse teams can lead to broader perspectives and more resilient businesses. Our approach is designed to be inclusive, practical and forward-looking, offering tools such as behavioural profiling workshops, strategic planning sessions and our Business Builder’s Blueprint to help leaders at every stage.

Encouraging inclusive leadership

The FTSE Women Leaders Review has set a recommendation for every FTSE 350 company to appoint at least one woman to one of the top four board positions: Chair, Senior Independent Director, CEO or Finance Director by the end of 2025. While such goals are aimed at large organisations, many of the same principles can be adapted for use within SMEs.

For smaller businesses, leadership development often stems from internal culture and values. Reflecting on how teams are shaped, how opportunities are communicated, and how individuals are supported can all contribute to a more balanced and representative environment.

Creating space for dialogue, mentorship and shared learning can also encourage more people to step forward, helping to build a stronger pipeline of future leaders.

Looking ahead

Financial leadership plays a key role in shaping a business’s future. When a wider range of voices are included in that space, decisions may reflect a broader range of perspectives.

While progress in this area is ongoing, the foundations are already in place. There is a growing recognition of the value that inclusive leadership brings and with the right support, many more women may feel empowered to step into finance roles in the years ahead.

To learn more about TAB or experience a free taster peer board in your area, visit www.thealternativeboard.co.uk.

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