CORPORATE diversity in Britain is improving, with 95 per cent of FTSE 100 companies and 82 per cent of FTSE 250 companies successfully meeting voluntary targets for ethnic minority representation on their boards, according to a major review published last week.
Minorities now comprise 11 per cent of senior management in the top 100 companies and nine per cent in the next 250 enterprises, with firms setting new targets to increase representation by 2027, the Parker Review Committee report, published last Tuesday (11), found.
According to the survey, 48 per cent of the UK’s top 50 private companies have reported meeting the goal of appointing at least one ethnic minority director ahead of the 2027 target.
The committee was established in 2015 by the Department for Business, Energy and Industrial Strategy to examine ethnic diversity on UK company boards. It published its initial findings in 2017 and set the “One by 2021” target for FTSE 100 boards and the “One by 2024” target for FTSE 250 boards.
The report pointed out that the FTSE 250 has seen a major transformation last year, with the proportion of companies having at least one ethnic minority director, increasing nearly fourfold from just 22 per cent in 2019 to 82 per cent by the end of 2024.
David Tyler, who chairs the Parker Review Committee, said, “The strides made in improving ethnic representation in UK businesses highlight a significant shift in corporate leadership over the past decade since the Parker Review was first established. We commend companies for their commitment to diversity, which strengthens decision-making and broadens perspectives at the highest levels.”
The report highlighted that there are now 13 ethnic minority CEOs and eight ethnic minority chairs in the top 100 companies in the country – the highest figures ever recorded by the review.
People with ethnic minority backgrounds currently hold 19 per cent of all director positions in these companies, maintaining the level seen in 2023. For the FTSE 250, this year was significant as it marked the December 2024 deadline for the “One by 2024” target, which called for all companies to have at least one director from a minority ethnic background.
“This year marks the December 2024 deadline for the target of FTSE 250 companies to have at least one director from a minority ethnic background. Around 82 per cent of companies have met this voluntary target. We look forward to seeing more progress,” Tyler added.
The review has also begun tracking Britain’s largest private companies for the first time. Of the 50 private companies invited to participate, 34 provided board data, with 24 reporting at least one ethnic minority director. This means 71 per cent of reporting companies – or 48 per cent of the total group – have already met the target set for December 2027, three years ahead of schedule.
Justin Madders MP, minister for employment rights, competition and markets, welcomed the progress, but acknowledged challenges: “It is essential that the boards of the UK’s biggest businesses represent our country’s diversity. Although there is still more to do, it’s promising to see how far we’ve come over the past decade by appointing a broader range of talent.”
Beyond board representation, the review expanded its focus to include senior management diversity. Almost all top 100 companies (92 out of 100) provided data showing that, on average, 11 per cent of their UK-based senior management positions are held by people with ethnic minority backgrounds.
Further, 57 companies have committed to targets for ethnic minority representation in senior management, aiming for an average of 15 per cent by December 2027.
The picture is similar in the FTSE 250, where 147 companies provided senior management data. On average, nine per cent of FTSE 250 companies’ UK-based senior management roles are held by minorities. Sixty-nine FTSE 250 companies have established targets averaging 13 per cent ethnic minority representation in senior management by the end of 2027.
The review noted that 86 companies in the FTSE 250 are investment firms, which typically employ very few senior managers, explaining why only four of these provided senior management data.
Among private companies, the data collection on senior management is still in its early stages. Only 12 of the top 50 private companies responded with this information, showing that on average nine per cent of their UK-based senior management positions are held by people with ethnic minority backgrounds. These companies have set targets to increase this to an average of 13 per cent by 2027.
Tyler stressed that the committee’s attention has now broadened: “Our attention today is on senior executive leadership as much as on the members of the board. We are pleased that a large number of companies are now working towards achieving targets they have set for 2027 for ethnic minority executives in their senior leadership teams.”
In 2023, the committee expanded its scope to include 50 of the largest private companies, setting them a target of having at least one ethnic minority director by December 2027. At the same time, it asked each FTSE 350 company and top 50 private companies to establish its own target for ethnic minority representation in UK-based senior management by December 2027.
