REVIEW’S PROPOSALS TO HAVE MORE MINORITY DIRECTORS IN FTSE 100 FIRMS

by LAUREN CODLING

ETHNIC minority Britons represent only two per cent of directors in FTSE boardrooms, a new report has revealed.

The Parker Review, released last Thursday (12), showed that 51 out of FTSE 100 companies do not have any directors of colour, while only six ethnic minority individuals

hold the position of chair or CEO.

Sir John Parker, chairman of the Parker Review Committee, said the boards do not accurately reflect society and while boards are making “good progress” on gender diversity, he said there is still “much to do” concerning ethnic diversity.

“Our report has identified clear commercial benefits in addressing this issue, and it is crucial to make progress in this area if we want Britain to continue to be at the forefront of global business,” Sir John said.

The report was released by consultant company Ernst & Young (EY).

Among the recommendations to increase ethnic diversity at the board level are: increasing the ethnic diversity by proposing each FTSE 100 board to have at least one director from an ethnic minority background by 2021 and for each FTSE 250 board to do the same by 2024.

Developing a “pipeline of candidates” and planning for succession through mentoring and sponsoring, as well as increasing transparency and improving record-taking are other key suggestions.

A further recommendation suggested all FTSE human resources teams should present qualified people from ethnic minorities to be considered for board appointments when there is a vacancy.

The report also advised companies to encourage candidates to take on board roles, when appropriate, and suggested that existing board members mentor ethnic minority employees to ensure they feel comfortable to take on senior roles.

Sir John said: “[The report] outlines some business-friendly recommendations, which aim to not only increase the ethnic diversity of boards, in the near term, but also develop a strong pipeline of candidates for the future.”

Business minister Margot James said the government is committed to working with business organisations to create “more inclusive workplaces from the shop floor to the boardroom” as the report “clearly shows there is a lot more work to be done.

“I urge our largest companies to lead from the front on this issue and take up Sir John Parker’s recommendations to promote greater boardroom diversity to reap the economic and social benefits.”

Chair of the Equality and Human Rights Commission, David Isaac, said: “Race inequality is still entrenched in our society, as our own research has shown, and the government’s race disparity audit demonstrated there’s a desperate need for role models from ethnic minorities within the workplace.

“It is absolutely vital our leaders reflect our society and we welcome The Parker Review’s recommendations that each board should aim to have at least one member from an ethnic minority background and for there to be succession planning so that more people can reach

the top.”