FTSE 100 firms have made progress on board diversity as four in five listed companies now have at least one ethnic minority board member, confirmed the government-backed Parker Review on corporate diversity.
At least 81 of the FTSE 100 companies now have ethnic representation on their boards, compared to just 52 back in January 2020. Five directors from ethnic minorities are on more than one FTSE 100 board, and eight sit on FTSE 250 boards. Yet despite the “significant progress” one in five top listed companies remain all White, reveals the report; based on voluntary submissions from companies. Of the 998 board positions across FTSE 100 companies, 124 are held by ethnic minority directors; up from 95 in 2020. However, only five ethnic minority directors (all male) occupied a CEO position, compared to six in 2020.
The Parker Review Committee’s Chairman John Parker said the results represent “significant progress” towards meeting the “one by 2021” target by December 2021. “Corporate Britain, in my view, is becoming more comfortable with boardroom diversity,” stated Parker. “I believe too that the majority of FTSE board leaders want British companies to be seen not only as the best governed in the world; but also comprising society’s best diverse talents.”
PRESSURE TO DIVERSIFY HEATS UP
Although progress had been made, the pressure is still on companies to diversify their boards. Firms that fail to either disclose the ethnic diversity of their board or provide a “credible” action plan to achieve the Parker review targets will be handed an “amber top” alert by the Investment Association this year, as reported.
“We would hope the remaining companies in the FTSE 100, who still have time to meet the target, will ensure they follow this encouraging lead; and align with the business case that underpins the review,” added Parker.
Lord Karan Bilimoria, CBI President and Chair of Change the Race Ratio, agrees: “FTSE 100 firms have made real headway when it comes to ethnic diversity at the top. It’s clear to see they’ve stepped up despite the challenges of Covid-19. Now we need to see those last few firms do what the large majority have done already; and end the all-White boardroom.”
Bilimoria said that although an “important milestone” has been reached, “companies need to keep up momentum with actions to improve ethnic diversity at every level”; and develop talented future leaders from across society. “Our Change the Race Ratio campaign exists to help businesses to improve, not only to measure their progress, so I encourage all companies to sign up,” he added.
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