The Parker Review Committee has published a consultation version of a report into the ethnic diversity of UK boards. The report finds that ethnic minority representation on the boards of FTSE 100 companies is disproportionately low, representing only 8% of the total director population compared to constituting 14% of the UK population.
The report includes several recommendations which are intended to:
- Increase the ethnic diversity of FTSE 100 and FTSE 250 boards.
- Ensure that FTSE 100 and FTSE 250 companies develop mechanisms to identify, develop and promote people of colour so that they have a pipeline of board capable candidates.
- Enhance transparency by way of the disclosure in annual reports of companies’ diversity policies and compliance with board composition recommendations.
A specific recommendation is that each FTSE 100 board should have at least one director of colour by 2021, and each FTSE 250 board should have at least one director of colour by 2024.
Comments on the consultation version of the report are requested by 28 February 2017 and a report containing the final recommendations and findings of the review will be published thereafter.