New entrants to the FTSE Alternative Investment Market (AIM) Index are over twice as likely to have an ethnically diverse CEO than both the FTSE 100 and AIM 100, new research has found, demonstrating the need for the UK’s largest corporations to address the diversity deficit at the very top.
The research, from diversity and inclusion consultants INvolve, revealed that 15% of the 105 new AIM entrants since 2020 have an ethnically diverse CEO, compared to just 7% of the FTSE 100 and 6% of the AIM 100. Clearly, while British business is full of highly successful, diverse senior leaders and entrepreneurs, these numbers sadly dwindle upon reaching the UK’s top companies. The wealth of diverse talent in the UK still faces significant barriers to progressing to the very highest levels.
However, the data also demonstrates the potential power of diverse entrepreneurship for driving progress in diverse senior leadership. Around 50% of ethnically diverse CEOs of new AIM entrants are also the company founders. In comparison, of the AIM 100 companies with an ethnic minority CEO, just one is founder-led.
The research released by INvolve to mark the release of the annual Empower Role Model Lists, supported by YouTube, demonstrates a potentially more diverse future for UK business, while also showing how far the largest organisations still have to go in their commitment to the inclusion of ethnically diverse talent, particularly in the most senior positions. While the latest Parker Review found that nearly all (96%) of FTSE 100 firms now have at least one ethnic minority director on their board, this level of representation is clearly not reflected at the very top of these organisations.
BREAKING DOWN BARRIERS
The annual Empower Role Model Lists celebrate business leaders who are playing a central role in breaking down barriers at work for ethnically diverse talent and those who are leveraging their platform and influence to keep diversity and inclusion at the top of the agenda. The global lists feature Role Models from 51 countries, reflecting different stories, experiences and strengthening the cohort with increased intersectionality.
“The fact that new AIM entrants are more likely to have an ethnically diverse CEO is an encouraging sign that there is an appetite for change within some businesses,” stated Suki Sandhu OBE, Founder and CEO of Involve. “As a founder and CEO from an Indian Sikh background, I feel especially proud that many of the new AIM entrant CEOs are also the company founders. It’s my hope that these leaders will continue to drive their companies forward and that this positive representation is maintained, and indeed improved upon, as the organisations grow.”
LACK OF DIVERSE REPRESENTATION AT THE TOP
However, Sandhu also described FTSE 100 and AIM 100 figures, which show a widespread lack of diverse senior representation across the board, as “horrifying”. “We cannot allow the UK business landscape to continue to be defined by this glaring lack of diversity, especially when I know first-hand that there is a huge amount of diverse talent out there. If businesses are maintaining barriers to progress and making it far too difficult to break through, it’s clear that they are only paying lip service to the idea of ‘diversity, equity, and inclusion,” noted Sandhu.
He believes urgent work needs to be done to ensure that progression to CEO level is attainable for all employees, regardless of their background. “Talent development programmes can be instrumental in instilling the tools and skillsets employees need to succeed and levelling the playing field, particularly when it comes to reaching the very top,” added Sandhu. “Of course, we know that senior role models are also crucial for aspiring talent, paving the way for future leaders to move into leadership positions. It’s why we continue to be so proud to showcase the many inspiring leaders breaking barriers for people of colour in our Empower Role Model Lists.”
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