Lead the argument to improve diversity on UK Boards
In the Parker Review's first report, published in 2017, it set a target for all FTSE 100 companies to have at least one director from an ethnic minority background by 2021. However, the 2020 Parker Report reveals there has been 'slow progress'.
The report, which includes FTSE250 data for the first time, finds that FTSE 250 boards are even less diverse than the FTSE 100.
FTSE 350 Ethnic Minority Representation 2020:
Only 11 FTSE 100 companies have added an ethnic minority director to the board since 2017.
Across the FTSE 350, 59% have no ethnic representation on their company board (150 out of 256 companies analysed).
FTSE 350 Ethnic Minority Leadership Representation 2020:
FTSE 350 Ethnic Minority Female Representation 2020:
FTSE 350 Ethnic Minority Reporting
The 2020 Parker Review included research carried out by Cranfield University's School of Management on behalf of the Financial Reporting Council (FRC). It revealed:
52% of FTSE 250 companies failed to mention ethnicity in their board diversity policy
only 14% of FTSE 100 companies set measurable objectives for board ethnic diversity
a mere 2% of FTSE 250 companies set measurable objectives for board ethnic diversity
most of the FTSE 350 do not set measurable ethnicity targets and, even where objectives have been set, no FTSE 350 companies report progress against them
whilst 11% of FTSE 100 and 4% of FTSE 250 companies plan to increase ethnic diversity in the succession pipeline, most focus on general progression rather than specifically focusing on senior management
To help accelerate the rate of progress, the 2020 Parker Review builds on its 2017 recommendations with a number of additional actions. These new recommendations include:
- improved reporting of ethnicity on boards
- measuring board level diversity
- helping to build a pipeline of high potential diverse leaders and senior managers.
The Financial Reporting Council (FRC) has also stated that it expects improved reporting from companies under the new UK Corporate Governance Code. This code promotes diversity in appointments and succession plans, including ethnic diversity.
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