A new report on race representation in mid-sized UK companies has revealed that they are slow to increase ethnic diversity among their board members.
According to the government-backed Parker Review, despite “significant progress”, nearly one fifth of FTSE 250 firms had not improved.
46 companies ignored the survey, or had white boardrooms.
David Tyler, the former Sainsbury’s chairman and chair of the review committee, said that some FTSE 250 firms were not able to meet the target due to the large number of investment trusts included in the index. These often have no or few senior managers. He believes that “it is moving in the right directions”.
Five FTSE 100 firms, including Hargreaves Lansdown Persimmon, and United Utilities failed to appoint a director from an ethnic minority.
The FTSE 100 has 11% ethnic minorities in senior management, while the FTSE 250 has 9%. This is less than the 17% of England and Wales.
Jonathan Reynolds, Business and Trade Secretary, said that the latest report highlighted significant progress. With the date for the 2024 voluntary targets being reached by FTSE 250 this year, it’s incredibly encouraging to witness a 17% rise in the number companies meeting that goal compared to last. This progress is testament to all the stakeholders’ collective efforts.”
He urged firms to use the recommendations and insights in the guide to “cultivate an inclusive culture that empowers staff, drives growth and, ultimately, contributes towards a more equal society”.
He said: “Let’s continue to build this momentum and strive for a future in which diversity is celebrated and everyone has the chance to succeed.”
The government tasked the Parker Review Committee, which was first established in 2015 under the leadership of Sir John Parker and first convened in 2016, with making recommendations on how to increase the representation of minorities in senior business roles in Britain. The committee’s aim was to improve business performance through the use of all talents and to reduce group-think. It also aimed to ensure equal opportunities for minorities.
During its launch, over half of the FTSE 100 boards had been painted white.
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The review requested that FTSE 100 companies and FTSE 250 set their own diversity targets for 2027 in 2023. FTSE 100 firms aimed to have 15% of their workforce be ethnic minorities, while FTSE 250 companies aimed at 13%.
