A recent assessment of the UK's leading 350 businesses reveals a positive trend towards greater ethnic diversity in boardrooms, yet significant strides remain necessary, according to the Parker

Review.

Notably, the number of ethnic minority chief executives in the FTSE 100 has risen to 12, up from seven in 2022. However, only 13% of senior management positions across the top 100 firms reflect ethnic diversity, a figure that underscores the need for further advancement.

Comparatively, data from the 2021 census shows that 18% of the UK population identifies as belonging to a non-white ethnic group, highlighting a disparity in representation at senior levels of corporate leadership.

Originally mandated by the government in 2015, the inaugural Parker Review underscored the disproportionately low presence of ethnically diverse personnel in UK boardrooms.

The latest review, conducted in 2023, indicates significant changes within the top 350 companies. In the FTSE 100, individuals from ethnic minority backgrounds now occupy 19% of all director positions, marking a one-percentage-point increase from the previous year. Moreover, the number of companies with multiple ethnic minority directors has risen from 49 in 2022 to 56 in 2023.

Notably, 96 of the largest firms have met the target of including at least one minority ethnic director on their boards, consistent with the previous year's figures. Among the remaining FTSE 250 companies, 175 now feature ethnic representation on their boards, a notable increase from 148 companies in December 2022, indicative of ongoing progress.

The Parker Review also identifies a proactive approach among top firms, with 48 setting an average target of 17% for ethnic minority representation within their senior management by December 2027. However, targets vary significantly, ranging from 5% to 45%, reflecting the diversity of ethnic minority shares both within the UK and internationally.

Hywel Ball, UK chair of EY, which collaborated on the review with the Department of Business and Trade, emphasizes the importance of maintaining focus on long-term priorities amid geopolitical fragility and political uncertainty. While acknowledging progress in increasing ethnic minority representation, Ball emphasizes that further efforts are required to achieve meaningful diversity in corporate leadership. Photo by Phil Whitehouse, Wikimedia commons.