Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Gender pay gapGenderLatest NewsEquality, diversity and inclusionExecutive recruitment

Rise in diversity at board level of FTSE companies

by Adam McCulloch 5 Dec 2022
by Adam McCulloch 5 Dec 2022 Photo: Shutterstock
Photo: Shutterstock

Two-thirds of FTSE 350 companies now have at least one board member from an ethnically diverse background – a significant increase from 45% in 2021. But businesses on the Alternative investment Market are failing to keep pace, a new study has found.

A study by Thomson Reuters (Annual Reporting and AGMs 2022) shows that the best-performing companies in terms of representation of different ethnicities at senior levels are in the FTSE 100, where 84% have at least one board member from an ethnically diverse background, compared with 55% in the FTSE 250. The study also looked at the composition of boards by gender. It found directorships of FTSE 100 companies were now comprised of 40% women, with 417 directorships being held by women in 2022. This was up from 2021, when women made up 39% of director positions. In 2020 the proportion was 35%.

Diversity at board level

Census shows England and Wales more diverse than ever

Lack of inclusion blights working lives of many UK Hindus

How to create an inclusive workplace for religion

’Not my business’: how workplace racism goes unchallenged

Each FTSE 100 company now had at least two female board members, Thomson Reuters found. For the FTSE 250, 36% of total board positions were women (up from 32% in 2021 and 30% in 2020). Nearly a fifth of FTSE 250 companies (44%) disclosed that at least one of their executive directors was female, with overall average of executive positions held by women being 13% (compared with 16% for FTSE 100).

Companies have made considerable progress in achieving the Hampton-Alexander target of having at least 33% of female directors on boards, with just 16 FTSE 100 companies falling short.

Recommendations made by the FTSE Women Leaders Review that boards should be made up of at least 40% women have been met by 57 companies. This was a significant increase from 46 companies in 2021, the study confirmed.

AIM lags behind

In contrast, companies listed on the Alternative Investment Market (AIM) had not made nearly as much progress on diversity at board level as the main market: women make up just 20% of AIM UK 50 boards. Of the 354 board positions examined in the study, women hold just 72. Of these, 64 positions are non-executive directorships, with only eight executive director roles held by women. No AIM company included in the study had more than three women on its board.

Amanda Cantwell, senior editor, practical law at Thomson Reuters said: “AIM listed companies are subject to considerably less scrutiny than those listed on the main market. However, this doesn’t mean that they should not be aiming for greater inclusivity at board and senior management level.

“Studies have shown that companies which have more diverse representation at board level outperform less diverse competitors. At its current rate of progress in narrowing the gender gap, AIM companies risk falling even further behind FTSE 350 companies, which could cause considerable obstacles to growth.”

FTSE 100 progress

In the FTSE 100, five companies now have boards made up of greater than 50% women, compared with two in 2021. These are: Diageo (64%), Auto Trader (56%), Shell (55%), Admiral (55%) and Phoenix Group Holdings (54%). A further eight companies have boards in which women make up half of boards – F&C Investment Trust, Schroders, Pearson, Croda International, Rightmove, Centrica, Halma, and 3i Group.

Cantwell said: “FTSE companies have made considerable progress in improving diversity at board level – with markedly better representation of women and people from ethnic minority backgrounds.”

However, she added: “Despite improvements in representation the number of female board members who hold executive positions has failed to keep pace, with directorships held by women overwhelmingly made up of non-executive positions.”

In July this year a report found that FTSE 100 companies performed better than their US and Canadian counterparts in diversity and inclusion, but many employees still did not feel included at work.

Latest HR job opportunities on Personnel Today


Browse more human resources jobs

Adam McCulloch
Adam McCulloch

Adam McCulloch is a freelance writer and production editor who has worked in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He also works for a national newspaper and is the author of KentWalksNearLondon

previous post
Welsh government criticised over low office occupancy
next post
RAD Awards 2023 shortlist: Early Careers Attraction

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Access to Work delays costing blind people jobs,...

26 Jan 2023

What’s the difference between positive action and positive...

20 Jan 2023

What is organisational culture?

12 Jan 2023

Why the EU’s adoption of the Women on...

9 Jan 2023

2023 predictions for HR: From ‘quiet hiring’ to...

4 Jan 2023

Santander removes 2:1 degree requirement from graduate scheme

4 Jan 2023

RAD Awards 2023 shortlist: Equality, Diversity & Inclusion...

22 Dec 2022

KPMG research shows class the biggest barrier to...

19 Dec 2022

Many Christians feel unable to express religious identity...

14 Dec 2022

Workers seek virtual worlds for collaboration, says Meta

12 Dec 2022

  • The Workplace Today Guide: Why it pays to support your staff’s financial health PROMOTED | The cost of living crisis has hit...Read more
  • abrdn pensions master trust: an enhanced member experience PROMOTED | For most people, their pension will be the largest source of income in retirement...Read more
  • How can HR equip leaders to support a wounded workforce? PROMOTED | The World Health Organisation (WHO) has released new guidelines for employers...Read more
  • How HR manages absence and hybrid working (survey) WEBINAR | HR professionals are slowly realising...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+