Although the number of ethnic minority professionals in top positions continues to steadily rise, the slow progression of Black leaders is concerning, according to the latest Parker Review.
The latest findings in this year’s Parker Review highlight some progress in UK boardrooms. By the end of 2024, 13 chief executives within the FTSE 100 were of an ethnic minority background, marking a small increase from 12 in 2023. Additionally, 95 out of 100 FTSE 100 companies now have at least one ethnic minority director on their boards.
However, mid-sized firms have been slower to meet these voluntary diversity targets. Among FTSE 250 companies, 82% met the target in 2024, leaving 46 companies either with all-white boardrooms or failing to supply diversity data.
SLOWER PROGRESS FOR BLACK LEADERS
While overall ethnic minority representation in leadership continues to improve, there are concerns about the slower progress in recruiting Black senior managers. According to the review, Black executives held just 1.2% of FTSE 100 positions, significantly lower than their 3.9% representation in the UK population.
This discrepancy suggests that while diversity targets are being met broadly, there is still work to be done in achieving more equitable representation across different ethnic groups. However, on a positive note, David Tyler, Chair of the Parker Review, noted that UK companies are not approaching diversity with a “one and done” mentality. Instead, businesses continue to recruit based on merit, with an increasing number of ethnic minority professionals taking leadership roles.
UK QUIETER ABOUT DIVERSITY EFFORTS
Despite the steady progress, some UK companies appear to be “quieter” about their diversity efforts in response to cultural and political shifts in the US. Businesses that operate across both regions are considering how their policies align with emerging trends, particularly in the wake of increased scrutiny around diversity, equity and inclusion (DEI) initiatives in the US.
According to Tyler UK companies selling in the US are re-evaluating their approach. “If you felt that just by having a diversity target you would be barred from bidding for US government contracts, you would be thinking a bit more about what you do,” he noted.
Tyler believes that rather than rolling back diversity efforts, companies may be adjusting their messaging. Some are rebranding DEI programmes, integrating them into broader HR functions, or shifting their language around inclusivity to avoid potential backlash,
REPOSITIONING DEI EFFORTS
As UK companies navigate these complex pressures, they remain committed to fostering inclusive workplaces, albeit with a more measured public stance, according to the Parker Review. The broader trend suggests that while companies are not abandoning DEI efforts, they may be repositioning them strategically to align with both domestic and international expectations.
With ethnic minority executives currently making up between 9% and 11% of UK-based senior managers, the Parker Review has set a new target of 13% to 15% by 2027. Whether companies will continue their momentum or further recalibrate their diversity strategies remains to be seen. For now, UK businesses are walking a tightrope – balancing progress in representation with the evolving political and business climate on both sides of the Atlantic.
Click here to read the full report.
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