Almost all FTSE 100 companies now have at least one director from an ethnic minority background on their board – an increase from 84% in 2022. The figure is now 97%.
The latest Thomson Reuters Annual Reporting study shows companies in the FTSE 250 are also improving levels of representation of different ethnicities at the board level – though at a lower rate than the FTSE 100. Of the FTSE 250 companies reviewed, 73% now have at least one director from an ethnic minority background – a considerable increase from 55% one year ago.
Women now hold 42% of board roles across the FTSE 100, the study found, a small increase on the figure in 2022, 40% and in 2021, when it was 39%.
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Although 35 companies are yet to reach the target of a minimum of 40% female representation on their boards by 2025 – set by the government-backed FTSE Women Leaders Review – every FTSE 100 company now has two or more women on their boards.
Of the FTSE 350 companies reviewed, the sectors with the highest number of directorships held by women were oil, gas and chemicals (47%); food and beverage (47%); and media (46%).
Since 2022, the Financial Conduct Authority’s (FCA) Listing Rules have required listed companies to disclose in their annual report whether they meet specific diversity targets, including having at least one board member who is from an ethnic minority background. Only three of the FTSE 100 companies reviewed in the Annual Reporting and AGMs study had not met that target.
The government-backed Parker Review also set new targets in 2023, recommending each FTSE 100 and FTSE 250 board should have at least one director from an ethnic minority by 2024 and that companies should set a percentage target for senior management positions that will be held by such executives by the end of 2027.
Amanda Cantwell, senior editor for Thomson Reuters Practical Law, said: “The past few years have seen tremendous progress in increasing representation of ethnic minorities on boards across the FTSE 350. The Listing Rule target and Parker Review recommendations have been significant drivers to encourage greater diversity on boards as well as to shift expectations of stakeholders and the broader public.”
Across companies in the FTSE 350, women now hold, on average, 40% of board positions. This has been achieved two years earlier than the 2025 target. The report notes 76 companies in the FTSE 350 (40 FTSE 100 and 36 FTSE 250) have met the Listing Rules targets of 40% female representation on the board, at least one woman in a senior board position, and at least one director from an ethnically diverse background.
While the number of female directorships on FTSE 100 boards continues to trend upward, the number of women in executive positions remains relatively low (19% in 2023 and 16% in 2022).
Women hold just 24% of board positions in companies listed on the Alternative Investment Market, a slight increase from 20% in 2022 and 2021 – while 11% of the companies have no female directors on their boards.
Cantwell said: “An increasing focus is now expected to turn to ensuring there is a diverse and inclusive pipeline of talent at executive level, where women and people from ethnic minority backgrounds can play more influential roles. It would be encouraging to also see these improvements in representation extend beyond the UK’s largest companies to the broader business landscape.”
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