Why female appointments to financial services boards fell in 2023

Female appointments to European financial services boardrooms fell year-on-year in 2023, amid growing demand for c-suite experience

In brief

• Female board appointments in Europe shrunk from 51% in 2022 to 44% in 2023.
• 59% of all directors appointed in 2023 brought c-suite experience, but just 38% were female, down from 47% in 2022.
• 36% of all directors appointed in 2023 brought political experience; 27% brought tech experience, up from 22%; and 22% brought ESG / sustainability skills.

While 2022 was an exceptional year in bridging the gender gap within financial services boards, in 2023 this trend has slowed down. In Europe, the proportion of female appointments dropped from 51% in 2022 to 44% in 2023, according to the latest EY European Financial Services Boardroom Monitor.

While all European financial services firms monitored have female representation at boardroom level, the current gender split across all firms stands at 57% male and 43% female, and 31% of listed European financial services firms are still reporting under 40% female representation in their boardroom. This is below the level required by June 2026 to comply with the European Commission’s European Women on Boards Directive, which requires all companies in EU member states to meet a 40% female target for non-executive boards or 33% for all board members. 

The EY Boardroom Monitor charts the profile, experience, training and skillsets of board directors across the MSCI European Financials Index. The data is supplemented with a sentiment survey of 300 European financial services investors, where 82% of respondents state that boardroom gender diversity has a significant influence on their decision to invest.

C-suite experience in demand on European boards

C-suite experience was the top criteria for new board director recruitment in 2023, with 59% of appointments during the year bringing current or past executive management team experience. However, of directors with c-suite experience appointed this year, just 38% were female, down from 47% in 2022.

Across European financial services boardrooms, female directors remain significantly less likely than their male counterparts to have the experience of c-suite role or hold a senior board position. Just over half (51%) of female directors have the experience of an executive management team role, while 64% of male directors have similar experience. Across the population of directors tracked, senior board positions (defined under the FCA’s proposed changes to UK Listing Rules as Chair, Chief Executive Officer, Senior Independent Director or Chief Financial Officer) are held by women at only 29% of listed European financial firms.

Boardroom skills in demand

Data from the EY Boardroom Monitor shows that 14% of European financial services board directors left their role in 2023, with new appointments lagging departures at 11%.

However, financial services firms have used new appointees to continue to deepen political, technology and sustainability skillsets and experiences on their boards. Of directors appointed in 2023, 36% bring political experience (down from 41% in 2022), 27% have professional experience in tech (up from 22% in 2022), and 22% have professional experience in sustainability or ESG (down from 23% in 2022).

New appointments are still more likely than existing directors to have sustainability, tech and political expertise and experience. Across all board members, 15% have expertise in sustainability, 18% have expertise in tech, and 33% have political experience.