Findings From The Parker Review 2023

Very pleased to see continuing progress on ethnic diversity in the Boardroom. The results of this year’s Parker Review show that Boardrooms are becoming gradually more reflective of their communities, colleagues and customers. ?

Today, 18% of all FTSE 100 director positions are held by directors from a minority ethnic group, mirroring the UK population, of which 17% is comprised of ethnic minorities. Nearly all FTSE 100 Boards (96) have at least one non-executive director from an ethnic minority background, and of these Boards, almost half have more than one director from an ethnic minority background. ?

These results reflect what we have found in our research into the consumer sectors: that gathering data and putting in place clear, measurable targets is one of the most effective paths to progress. I’m encouraged that the Review Committee is now extending its targets to senior management teams, and to include large private businesses. ?

While the progress made is heartening, change is not entirely widespread. On the FTSE 100, there is still a handful of companies – a group which includes consumer-sector businesses – with all-white Boards. Moreover, only six Chair and seven CEO positions are held by a leader from an ethnic minority background on the FTSE 100. And on the FTSE 250, only 60% businesses have any ethnic diversity on their Board at all. ??

Public companies are also only one part of the picture. Research by The MBS Group shows that Board-level ethnic diversity is much lower in the consumer sector more generally. In the retail, hospitality, travel and leisure, beauty and fashion industries, no more than ten percent of non-executive director roles are held by leaders from an ethnic minority background. ?

As such, we must not lose focus. As those familiar with my manifesto – Boards of the Future –?will know, at The MBS Group we are clear that the winning Boards will be those that ensure diversity, in its most holistic sense, remains at the very top of the agenda. The business case for D&I is sound, and those companies which fail to ensure representation will soon find themselves outrun by their more forward-thinking competitors.??

I am fortunate in my career to meet inspirational business leaders every day, and I’m excited by the depth and breadth of talented non-executives. Against the backdrop of this diverse talent landscape, there is really no excuse for an all-white Board in 2023.?