The Parker Review 2022 update published on 13th March has revealed that progress has been made by the FTSE350. The review has also announced two new changes that see their focus widen to include the ExCo and ExCo pipeline and expand to include 50 large private businesses.
What progress has been achieved
Data from their latest census shows that as of December 2022, 96 of the FTSE 100 had at least one ethnic minority director and half had more than one. In 2016, only 47% of FTSE 100 boards had ethnic minority directors.
The update also reveals that 149 of the FTSE250 had at least one ethnic minority director, up from 128 last year. Across the FTSE350 there are 11 ethnic minority directors who occupy positions of chair, 21 who are CEOs and 19 who are CFOs.
What new targets have been announced
FTSE 350 companies have be asked to set a percentage target for senior management positions that will be occupied by ethnic minority executives in December 2027. Targets should be published by the end of 2023.
Fifty of the UK’s largest private companies have been set the target of having at least one ethnic minority director on the main board by December 2027.
Each company will also be asked to set a target for the percentage of ethnic minority executives within its senior management team; the target should be published by December 2024 and achieved by December 2027.
Syma Cullasy-Aldridge Co-Chair of Change the Race Ratio responds to the review update
“We welcome the Parker Review’s increased focus on the ExCo and look forward to deepening our partnership.”
“FTSE 350 companies are stepping up their actions to ensure people from ethnic minority backgrounds are strongly represented in the boardroom. There is no excuse for businesses not to be more ambitious on ethnic diversity targets at the top. All businesses who are considering what steps to take after today’s review should sign up to Change the Race Ratio.”
“The business case is sound. Consulting firms McKinsey and Deloitte have clear evidence that diverse teams result in more profitable and innovative organisations.
“Our Change the Race Ratio campaign, which champions the Parker Review, has developed momentum towards real and lasting change for ethnic minority representation both on boards and the executive committees. The goal of leadership racial equity could be reached by 2027, or better still, sooner, if business leaders act on the Parker Review’s targets for ethnic minority representation, on boards and executive committees."
