Extent of social connections in shaping boardroom appointments
Early findings from a University of Bristol study that investigated school, college and club connections in the boardrooms of the UK's top companies has found that social connections - through membership of elite private members' clubs and golf clubs - may still play a role in boardroom appointments. The study , led by researchers in the University's Centre for Market and Public Organisation , examined these informal networks and the role played by social ties in board appointments and the careers of company executives. The study's interim findings imply that reduced reliance on such networks will be necessary to increase board diversity. In 2011, the independent review of Women on Boards led by Lord Davies recommended that FTSE 100 boards should aim for 25 per cent female membership by 2015. In examining low levels of female representation, the Review found that 'the informal networks influential in board appointments, the lack of transparency around selection criteria and the way in which executive search firms operate, were together considered to make up a significant barrier to women reaching boards.'1 The team analysed data on around 1,700 UK listed companies, all of which made new appointments to their boards over the period from 1998 to 2008, and looked at whom was chosen for each board position among a set of potential candidates comprising around 2,600 directors.
