Domino’s Pizza has come under fire from the City over its lack of diversity on its board, which is due to become male-only by the end of the month.
The Investment Association (IA) has issued a so-called red-top on the pizza chain, first reported by the Sunday Telegraph. It represents the strongest warning from the body because of its failure to appoint women to its board.
The IA’s Institutional Voting Information Service (IVIS) highlights companies that do not meet investor expectations on diversity. Companies are designated ‘red-top’ when women represent 20 per cent or less of the board.
Domino’s currently has one woman on its board, Helen Keays, but she is set to leave later this month.
It comes after the IA and the Hampton-Alexander Review wrote to nearly a fifth of FTSE 350 companies over their lack of gender diversity earlier this year. The 63 companies, including Domino’s, were asked to outline what action they would take to improve the gender balance. The current target is for a minimum 33 per cent of women on boards and in senior leadership teams by the end of the year.
The IA also called out the so-called ‘one and done’ boards in the FTSE 250, with 24 companies cautioned for having only one woman on their board.
In February’s review, chief executive of the IA, Chris Cummings, said: ““Diversity results in better decision-making and plays an essential role in a company’s long-term success. Investment managers have been clear that as a minimum they want to see companies meet this target for gender diversity, and those which fail to do so risk facing dissent in the AGM season.”