There are more ethnic minority leaders of the UK’s 100 biggest-listed companies than there were a year ago, as progress has been made towards ethnic diversity in boardrooms, according to the latest Government-backed review.
The Parker Review found there are now 12 chief executives with ethnic minority backgrounds in the FTSE 100.
This marks a significant rise from seven in 2022, according to the report which was produced by the Parker Review Committee with the Government’s Department for Business and Trade.
The review set a target for all FTSE 100 boards to have at least one director from an ethnic minority background by the end of 2021.
The same target was set for the end of 2024 for all FTSE 250 boards.
Of the top 100 firms, 96 had ethnic minority representation on their company boards at the end of 2023, while 175 of FTSE 250 companies did.
Frasers Group, Diploma, Howden Joinery and Intermediate Capital Group had not met the 2021 target in the latest report.
And Domino’s Pizza, WH Smith, pub group Mitchells & Butlers, and housebuilders Vistry, Bellway and Crest Nicholson were among the FTSE 250 companies to have not yet met the December 2024 target.
The Parker Review, which was commissioned by the Government in 2015 to consult on ethnic diversity on UK boards, said it deliberately does not set targets for individual minority ethnic groups, because it would not be practical for companies to do so.
However, data analysed by the committee indicated that the proportion of director positions held by Asian individuals is roughly proportionate to their representation in the UK.
But it also indicated that the number of black individuals in senior levels of business does not reflect their representation in the UK population.
Meanwhile, the report showed data for the first time on the ethnic diversity of senior management teams across the top UK businesses.
It found that 13% of senior management at FTSE 100 firms came from ethnic minority backgrounds, and 12% of FTSE 250 firms.
Ethic diversity benefits business and society in different ways, such as by enabling positive change, achieving better business outcomes, and reflecting companies’ clients and customers, the review said.
David Tyler, who chairs the review’s committee, said there had been “good progress” this year.
“The FTSE 250’s progress towards its December 2024 deadline, for at least one ethnic minority director on each board, is encouraging, reaching 79% of those reporting.
“With the time remaining, we urge those FTSE 250 companies without an ethnic minority director to do what they reasonably can to reach the target.”
Accounting giant EY, which sponsors The Parker Review, said it is important that business leaders continue to be held accountable over diversity “regardless of the macroeconomic climate”.
Hywel Ball, EY’s UK chairman, said: “At a time when business leaders are having to grapple with the realities of a challenging macroeconomic environment, coupled with geopolitical fragility and political uncertainty, it’s important not to lose sight of longer-term priorities.
“While this year’s Parker Review shows that progress is being made to increase the representation of ethnic minority talent, there’s still more to do.”