Improving executive diversity must not alter effectiveness

Removing the barriers to women reaching boardroom positions is only part of the change required to improve global corporate governance.

That is according to the financial journalist William Hutchings, who described increasing the proportion of women in senior management as a "laudable aim" that may distract from appointing executives with the best skills and experience required for positions.

Explaining that the effectiveness of executives and non-executives should be investors' first priority, the asset management specialist claimed that studies have not shown a strong correlation between returns and gender diversity.

Writing for Wealth Bulletin, Mr Hutchings suggested that "it is a person's talent, rather than their gender" that is important in executive recruitment campaigns.

He wrote: "A diversity of informed opinion is desirable, along with a willingness to challenge opinion … but is only part of what is needed overall."

This viewpoint was countered earlier this month by Professor Charles Goodhart of the London School of Economics, who claimed that the "cautious" approach offered by female executives to companies may have prevented the recession.