As per a recent study, nearly all FTSE 100 companies currently boast at least one director hailing from an ethnic minority background on their board. The study by Thomson Reuters highlights that companies in the FTSE 250 are getting better at having people from different ethnic backgrounds on their boards. However, they are not improving as fast as the FTSE 100 companies.
Out of the FTSE 250 companies looked at, 73 per cent now have at least one director from an ethnic minority. This is a big jump from 55 per cent last year.
The study also found that women now have 42 per cent of board roles in the FTSE 100. This is a bit higher than the figure for 2022 ( 40 per cent)and in 2021 (39 per cent). While 35 companies have yet to attain the government-backed FTSE Women Leaders Review’s target of a minimum 40 per cent female representation on boards by 2025, every FTSE 100 company now includes two or more women on their boards.
Among the FTSE 350 companies analysed, the sectors with the highest proportion of directorships held by women include oil, gas and chemicals (47 per cent), food and beverage (47 per cent) and media (46 per cent).
Since 2022, the Financial Conduct Authority’s Listing Rules mandate listed companies to disclose their adherence to specific diversity targets. This also includes the inclusion of at least one board member from an ethnic minority background. Only three of the FTSE 100 companies assessed in the Annual Reporting and AGMs study fell short of meeting this target.
The government-supported Parker Review, introduced in 2023, recommends that each FTSE 100 and FTSE 250 board should include at least one director from an ethnic minority by 2024. Additionally, companies are urged to establish a percentage target for senior management roles held by such executives by the close of 2027.
The report indicates that on an average, women now occupy 40 per cent of board positions across FTSE 350 companies, achieving this milestone two years ahead of the 2025 target. Seventy-six companies in the FTSE 350, comprising 40 FTSE 100 and 36 FTSE 250, have met the Listing Rules targets for women’s representation on the board, inclusion of at least one woman in a senior board position, and the presence of at least one director from an ethnically diverse background.
While the number of women directors on FTSE 100 boards continues to rise, the report indicates that the proportion of women in executive positions remains relatively low at 19 per cent in 2023 and 16 per cent in 2022. In companies listed on the Alternative Investment Market, women hold 24 per cent of board positions, showing a slight increase from 20 per cent in 2022 and 2021, while 11 per cent of these companies have no women directors on their boards.
To address these gaps, the report highlights the growing emphasis on ensuring a diverse and inclusive talent pipeline at the executive level.
FTSE companies refer to the companies listed on the Financial Times Stock Exchange (FTSE) indices. The FTSE indices are a series of stock market indices that measure the performance of companies listed on the London Stock Exchange.
The most well-known indices include the FTSE 100, which consists of the 100 largest companies listed on the London Stock Exchange by market capitalisation, and the FTSE 250, which includes the next 250 largest companies after the FTSE 100.
