In the FTSE 100, 31 of the chair and executive director positions included a minority ethnic director. Credit: aymane jdidi / Pixabay.

The Parker Review committee has announced new targets for improving the ethnic diversity of FTSE 350 senior management teams and large private businesses in the UK, which include pharma companies.

In its first report published in 2017, the Parker Review announced a series of recommendations and set a ‘One by 2021’ target for all boards of FTSE 100 companies to have a minimum of one director with a minority ethnic background by December 2021.

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For all FTSE 250 boards, the Review also set a similar ‘One by 2024’ target. 

Carried out together with the Department for Business and Trade, the voluntary census showed that 96 FTSE 100 companies had minority ethnic representation on their boards as of 31 December 2022.

Of the four companies which failed to meet the target, one company has been purchased since December and is no longer part of the FTSE 100.

The committee noted that 18% of all FTSE 100 positions are held by minority ethnic group directors.

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In the FTSE 100, 31 of the chair and executive director positions included a minority ethnic director, consisting of six people from ethnic minorities.

People from ethnic minorities now hold about 10% of influential positions.

The committee has also launched new targets for December 2027.

Under these targets, each FTSE 350 company will be required to set a percentage target for senior management positions. Ethnic minority executives will occupy these positions during that period.

Additionally, 50 of the private companies in the UK need to have a minimum of one ethnic minority director on the main board by December 2027.

Each company should also set a target for the percentage of ethnic minority executives within its senior management team.

Parker Review Committee chair David Tyler said: “Our latest data demonstrates that continuing progress is being made by FTSE 350 companies to bring ethnic minority directors onto their boards.

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

“That’s why we are now asking each FTSE 350 company to set its own five-year target, for December 2027, for the percentage of senior management positions that will be occupied by ethnic minority executives.”

After concluding discussions with representative bodies and businesses over the past 12 months, the Parker Review now plans to set senior management position targets.

The Review also encourages UK companies to describe the management development plans they have in place, in their annual reports, for a diverse and inclusive pipeline of talent.