96% of FTSE 100 companies now have at least one minority ethnic director on their boards

The voluntary survey showed that 96% of companies in the index of the UK’s largest companies had at least one director from an ethnic minority background on their board by 31 December 2022, up from 89 in 2021.

The government-backed review, established in 2017, showed that 46 of these businesses have more than one minority ethnic director on their boards.

In its first report in 2017, the Parker Review made a series of recommendations and set a "one by 2021" target for all FTSE 100 boards by December 2021 and a similar "one by 2024" target for all FTSE 250 boards. 

The chair of the Parker review committee, David Tyler, said the FTSE 100 target “has effectively now been reached.”

He added: “We have long argued that companies benefit from ensuring that succession planning and management development plans include the development of ethnic minority executives.”

Read more: Government appoints first Menopause Employment Champion 

Meanwhile, FTSE 250 companies are making progress towards the 2024 deadline of appointing at least one minority ethnic director, with 67% of companies that responded meeting the target in 2022, up from 55% last year.

The Parker review has launched new targets for December 2027, requiring FTSE 350 companies to set a percentage target for senior management positions occupied by ethnic minority executives.

By December 2027, 50 of the UK’s largest private companies have also been set the target of having at least one ethnic minority director on their main board.

Read more: Global payroll platform launched by Papaya 
 

“Our latest data demonstrates that continuing progress is being made by FTSE 350 companies to bring ethnic minority directors on to their boards,” Tyler said.

Syma Cullasy-Aldridge, the CBI’s Chief Campaign Director and Co Chair of Change the Race Ratio, said: 

“FTSE 350 companies are stepping up their actions to ensure people from ethnic minority backgrounds are strongly represented in the boardroom. 

"There is no excuse for businesses not to be more ambitious on ethnic diversity targets at the top. All businesses who are considering what steps to take after today’s review should sign up to Change the Race Ratio.

Read more: Campsited launches ’Open Air Work from Anywhere’ programme

“Our Change the Race Ratio campaign, which champions the Parker Review, has developed momentum towards real and lasting change for ethnic minority representation both on boards and the executive committees. 

"The goal of leadership racial equity could be reached by 2027, or better still, sooner, if business leaders act on the Parker Review’s targets for ethnic minority representation, on boards and executive committees."