Barbara Follett, the deputy minister for women, has called on companies to appoint more women to their boards.

She told the “Women as Leaders” conference, held by the Institute of Directors, that there was evidence that companies with a female chief executive or board director achieved a 10% higher return on capital.

Only 12% of FTSE board directors are women and a quarter of FTSE boards have no women members, according to figures from the Cabinet Office. Follett called for businesses to become “more family friendly and flexible, so men and women can choose how to balance work and family life and to enable women to reach their potential at work”.