FTSE 350 firms that cut gender pay gaps saw double-digit revenue growth – new research

• New Chartered Management Institute (CMI) analysis in collaboration with the FTSE Women Leaders Review reveals a strong link between reducing gender pay gaps and revenue surges in FTSE 350 firms. Companies like Rightmove and Smiths Group saw double-digit financial gains alongside greater gender balance in leadership.
   
• Senior leaders from leading FTSE 350 companies tell the CMI how tackling gender pay gaps is driving growth by fostering innovation, improving decision-making, enhancing customer understanding, and strengthening reputation.
   
• On the deadline day (4 April) for UK organisations to report gender pay gap data, CMI highlights that nearly half a million British managers avoid working for companies with gender pay gaps.
   
• Ann Francke OBE, CMI’s CEO and CMI’s Royal Patron HRH The Duchess of Edinburgh GVCO and Vivienne Artz OBE, CEO of the FTSE Women Leaders Review also react to the findings.

London – A new analysis of FTSE 350 companies has revealed a clear trend between closing gender pay gaps and double-digit revenue growth. The research from the Chartered Management Institute (CMI) in collaboration with the FTSE Women Leaders Review shows that ten FTSE 350 firms that made the biggest strides in reducing their gender pay gaps between 2019 and 2024 also saw revenue growth in nearly every case.

But while the financial benefits are clear, the analysis comes as a growing number of UK managers believe the push for gender balance has gone too far. CMI’s latest survey finds that over one in four (28%) British managers now say businesses over-prioritise gender diversity – up from 20% in 2023. Men are nearly three times more likely than women (39% vs. 14%) to hold this view, despite persistent gaps in leadership and pay.

"Our analysis shows that the top firms that take gender balance seriously are thriving,” said Ann Francke OBE, CEO of CMI. “The idea that we’ve ‘gone too far’ on gender diversity is flat-out wrong. The smartest businesses are proving that closing pay gaps isn’t just fair—it’s fuelling growth. Those ignoring the issue are losing talent, credibility, and competitive edge.”

She continued, “FTSE 350 leaders are telling us that gender equality isn’t just a moral issue—it’s a business driver. Companies that focus on closing gender pay gaps are seeing stronger performance, more innovation, and a clear competitive advantage. Ignoring gender parity is costing businesses talent, growth, and market relevance.”

Diversity pays: The numbers behind the trend

By analysing data from the FTSE Women Leaders Review alongside gender pay gap data and company performance, CMI’s research highlights ten FTSE 350 firms that achieved the biggest reductions in their median hourly gender pay gap between 2019 and 2024. These companies—including Smiths Group, Kingfisher, Rightmove, and Spirax Group—also increased female representation in leadership and saw revenue gains. Examples include:

Rightmove PLC improved its gender pay gap by +13pp, increased the proportion of women on its board by +7pp, and saw a +10pp rise in the number of women in executive roles. The company experienced the highest revenue growth among those listed, with a 77% increase.

Kingfisher PLC achieved a +14pp improvement in its gender pay gap and increased the percentage of women in executive positions by +5pp, alongside a 13% increase in revenue.

Smiths Group PLC improved its median hourly gender pay gap by +25pp, increased the proportion of women on its board by +20pp, and saw a +10pp rise in the number of women in executive positions. The company also reported a 23% increase in revenue.

FTSE 350 leaders make the case

FTSE 350 leaders are clear: closing the gender pay gap isn’t just the right thing to do—it’s good for their business.

Michelle Lydon, Chief People Officer at Croda, says, “There is a very clear business case for diversity. It is important, now more than ever, to concentrate efforts on creating a business culture that values and embraces difference.  This enables organisations to attract and retain the best people, gaining the benefit of the great minds across global workforces, driving innovation, and ultimately delivering stronger business performance”.

More diverse teams “operate more effectively, with a greater breadth of perspectives helping to foster more innovation and new thinking,” adds Kate Seljeflot, Chief People Officer at Kingfisher.

Jim Devine, Group HR Director at Spirax Group, highlights that diverse teams make businesses “more innovative” and “better able to understand and serve their customers”.

Emma Rose, Chief People Officer at Convatec, stresses that her firm recognises that “we will only improve care for patients and customers if we harness the power of our differences and encourage diverse thinking”.

Michelle Boothroyd, Chief People Officer at Grainger, said the report demonstrated how “ED&I gains can lead to business growth while enabling us to better represent the communities we serve.”

Smiths Group’s Kini Pathmanathan, Chief People, Sustainability & Excellence Officer, is clear: “Diversity and belonging is key to our effectiveness” and “long-term success.”

Vivienne Artz OBE, CEO of the FTSE Women Leaders Review, said:

“The FTSE Women Leaders Review is delighted to collaborate with CMI on this important study which analyses the revenue growth of FTSE 350 companies over a five-year period and its relationship with changes in gender pay gap reporting.

“Notably, the reduction of the gender pay gap generally aligns with enhanced business performance reflected in the revenue growth of these companies. This reinforces the positive impact of greater gender inclusion at the leadership level of FTSE 350 companies. Continued progress towards higher representation of women in leadership roles delivers many benefits, including a reduction in the gender pay gap, emphasising the importance of maintaining momentum and building on the excellent progress made so far."

The cost of inaction

For companies ignoring gender pay gaps, the risks are mounting. New CMI research calculates that nearly half a million British managers say they haven’t joined an organisation due to its gender pay gap – a major talent drain at a time when businesses are already struggling to recruit.

CMI’s report calls for stronger accountability measures across the board, including introducing a requirement for employers with 250+ employees to publish action plans, extending gender pay gap reporting to businesses with 50+ employees, and pushing employers to state salaries in job ads, avoid asking about salary history, and use balanced shortlists and interview panels.

The body is also calling on employers to introduce ethnicity and disability pay gap reporting for employers with 250+ employees, alongside a requirement to publish a narrative and action plan to drive progress.

CMI’s Royal Patron HRH The Duchess of Edinburgh GVCO, said: “I am grateful to the Chartered Management Institute for this impressive analysis of the impact of gender pay gap reporting. The insights offered in this report will no doubt help inform valuable discussion aimed at ensuring women working across the UK are able to fulfil their potential. There is also much to learn from gender pay gap reporting when it comes to tackling the pay gaps experienced by people from minority communities and people living with disabilities. I would like to thank the report authors and all those who contributed to this valuable piece of work.”