Increasing numbers of people from ethnic minority backgrounds are leading the UK’s largest companies, but more needs to be done to improve representation, according to authoritative analysis of company directors, chief executives and senior managers.
We looked at data on the 350 most valuable companies on the London Stock Exchange, as well as 36 of the UK’s 50 largest companies not listed on the stock exchange.
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The review, carried out by independent review body Parker Review Board and the Department for Business and Trade, found that 96 of the 100 most valuable companies on the Financial Times Stock Exchange (FTSE) have at least one ethnic minority director. board background.
While the number in 2023 is the same as in 2022, the number of CEOs from ethnic minority backgrounds in the FTSE 100 has increased, from seven in 2022 to 12 last year.
Directors are the primary members of a company’s board of directors and are responsible for overseeing the management of the business, while the CEO is usually the most senior member of the board of directors.
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Is the board diverse enough?
The number of chairs from ethnic minority backgrounds has also increased, from six to seven, although the total number of chair and executive director positions held by people from ethnic minority backgrounds remains at 31.
The number of companies in the FTSE 100 with more than one ethnic minority director increased from 49 in 2022 to 56 in 2023.
Of the 222 companies in the larger FTSE 250 index, the vast majority (79%) said they met their target of appointing at least one ethnic minority director, up from 67% in 2022.
Correct data on the ethnic background of senior management at FTSE 100 companies has been collated for the first time, showing that 13% of FTSE 100 companies and 12% of FTSE 250 companies are from ethnic minority backgrounds.
Senior management positions include chief financial officer and chief information officer.
The review said that while progress was welcome, more needed to be done to meet the December target of having at least one director from an ethnic minority background on the boards of FTSE 250 companies.
Among the largest private companies (rather than publicly traded entities), 36 of the 50 companies that provided data included 22 who said they have a minority director on their board. The companies have set a deadline of 2027 to complete the target.
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