FTSE 100 set target to have one BAME director by 2021

FTSE 100 companies are to aim to have at least one Black Asian Minority Ethnic (BAME) director by 2021 and FTSE 250 by 2024 as part of the Parker Review which sets out achievable objectives to encourage greater diversity, with only 8% of 1,050 FTSE 100 directors currently BAME

The Parker Review ‘Beyond one by ‘21’ has been published today and considers how to improve the ethnic and cultural diversity of UK boards by setting objectives and timescales for the FTSE 350 to aim towards to improve ethnic diversity.

Currently, only 85 (8%) of the 1,050 directors in the FTSE 100 are BAME directors and 51 companies have no BAME directors at all, while only seven companies account for over 40% of the BAMe directors.

The review set out several recommendations to improve diversity including setting targets for FTSE 100 boards to have one BAME director by 2021 and FTSE 250 by 2024.

Other recommendations include creating a nomination committee to require HR teams to find and present people of colour for board appointments and the Standard Voluntary Code of Conduct should be extended to the recruitment of ethnic minority candidates.

Large companies should also develop candidates for pipeline and plan for succession. Exisitng board directors should mentor BAME people within their companies to ensure their readiness to enter senior or executive positions.

A description of the board’s policy on diversity should be set out in the company’s annual report and should include a description of what measures the company is taking to improve ethnic diversity. Those companies that are unable to achieve compliance by the deadlines set should state the reasons why in their annual reports.

John Parker, chairman of the Parker Review Committee, said: ‘Today’s FTSE 100 and 250 Boards do not reflect the society we live in, nor do they reflect the international markets in which they operate. Whilst we are making good progress on gender diversity in the Boardroom, we still have much to do when it comes to ethnic and cultural diversity.

‘Our report has identified clear commercial benefits in addressing this issue, and it is crucial to make progress in this area if we want Britain to continue to be at the forefront of global business. We also outline some business-friendly recommendations, which aim to not only increase the ethnic diversity of Boards in the near term but also develop a strong pipeline of candidates for the future. These recommendations received overwhelmingly positive feedback and we have now provided some practical tools to help Boards implement them.

‘I look forward to seeing a change in the Boardroom as we continue to track progress in the coming years.’

Number of BAME directors at FTSE 100 companies

Company                                                   Total directorsBAME directors
Fresnillo129
Antofagasta118
Unilever135
Randgold Resources83
Standard Chartered134
Old Mutual123
WPP123
Mediclinic International102
AstraZeneca112
Diageo112
Anglo American122
HSBC Holdings183
British American Tobacco132
Coca-Cola132
Morrison (Wm) Supermarkets71
ITV81
Sage Group81
Worldpay81
Ashtead91
ConvaTec91
G4S 91
Kingfisher91
Merlin Entertainments91
Sainsbury91
United Utilities91
GKN 101
InterContinental Hotels 101
Intertek 101
Provident Financial101
Pearson101
SEGRO101
Smiths 101
Carnival111
GlaxoSmithKline111
Marks & Spencer111
Reckitt Benckiser111
Schroders111
Smith & Nephew111
Barclays121
BHP Billiton121
Compass Group121
National Grid121
Royal Dutch Shell121
Wolseley121
Rolls-Royce131
Shire131
Vodaphone131
Prudential151
Royal Bank of Scotland161
Scottish Mortgage Investment Trust6 
TUI 6 
Hargreaves Lansdown7 
3i Group8 
Glencore8 
Royal Mail8 
Admiral9 
Associated British Foods9 
Barratt Developments9 
Bunzl9 
Croda International9 
DCC9 
easyJet9 
Informa9 
Micro Focus International9 
Mondi9 
Persimmon9 
Rentokil Initial9 
Severn Trent9 
SSE9 
Taylor wimpey9 
BAE Systems10 
Direct Line Insurance10 
Hammerson10 
Johnson Matthey10 
Land Securities10 
Legal & General10 
Next10 
Paddy Power Betfair10 
RELX10 
RSA Insurance10 
Whitbread10 
Babcock International11 
Burberry11 
Experian11 
Imperial Brands11 
International Consolidated Airlines11 
London Stock Exchange11 
Rio Tinto11 
SKY11 
St James's Place11 
Aviva12 
British Land Co12 
Centrica12 
CRH12 
Lloyds Banking12 
Smurfit Kappa12 
Standard Life12 
Tesco12 
BP12 
BT Group12 

 

Parker Review - A Report into the Ethnic Diversity of UK Boards is available here

Report by Amy Austin

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