FTSE 100 Governance: Who Leads, Who Lags
A data-driven assessment of board independence, diversity, and committee structure across the UK's top companies
Governance Is Not Binary
Corporate governance is often discussed in binary terms — a company either has "good" governance or it doesn't. Reality is more nuanced. Our composite scoring framework evaluates five distinct dimensions, each weighted by its demonstrated impact on long-term value creation.
The Five Dimensions
Board Independence (25 points): What proportion of directors are genuinely independent? We look beyond formal classifications to assess whether non-executive directors have material connections to management.
Gender Diversity (20 points): The UK's Hampton-Alexander and FTSE Women Leaders reviews have driven significant progress. Most FTSE 100 boards now exceed 33% female representation — but management committees lag behind.
Committee Coverage (20 points): Does the company maintain the four key committees — Audit, Remuneration, Nomination, and Risk? Surprisingly, not all FTSE 100 companies have all four.
CEO/Chair Separation (15 points): The UK Corporate Governance Code is clear: the same person should not hold both roles. Yet compliance isn't universal, and some companies use interim arrangements that blur the line.
Board Size and Tenure (10+10 points): Too small and you lack diversity of perspective. Too large and decision-making suffers. Similarly, boards need a mix of fresh eyes and institutional memory.
Sector Patterns
Banking leads: Decades of regulatory scrutiny after the financial crisis have produced exemplary governance structures at HSBC, Barclays, and Lloyds. These boards are large, diverse, independent, and well-committed.
Mining shows mixed results: Rio Tinto and Anglo American have strong governance frameworks, but the sector's operational complexity and geographic spread create unique challenges for board oversight.
Consumer goods varies widely: Unilever and Diageo set high standards, while others in the sector have room for improvement on independence and committee structure.
See how every company scores on our Governance Rankings page.