New report shows lack of diversity in boardrooms

A lack of diversity at the top of Britain’s largest listed firms could scupper government plans to increase trade with nonEU partners after Brexit.

Data from Green Park shows 58% of FTSE 100 boardrooms still have no ethnic minority representation.

While that is an improvement on last year, Green Park CEO Raj Tulsiani said it could put the UK at a disadvantage.

“In light of the UK’s decision to leave the European Union, and our desire to increase trade with non-EU countries, the ongoing inability of our leading companies to attract and retain leaders from East Asian and African backgrounds should be a matter for serious concern,” he said.

“The UK’s aspiration to be outward-looking and open to business with the non-European world is hardly enhanced by the continued lack of challenge in the boards of our leading companies, still statistically and behaviourally dominated by men of similar cultural and educational backgrounds.”

His comments echo concerns laid out in the government-backed Parker Review, which found “disproportionately” low levels of diversity across UK boardrooms.

The review, which was released in November last year, subsequently recommended that one director of colour be appointed to each FTSE 100 company by 2021, and to each FTSE 250 board by 2024.