The Tea on The Parker Review 2023

The Parker Review, which comes out each year, is an initiative that promotes diversity and inclusion in the boards and senior management teams of FTSE 100 companies in the UK. It was founded to encourage these companies to increase the representation of individuals from ethnic minority backgrounds in their leadership positions.

The 2023 review gives us an insightful snapshot into the progress of FTSE 100 companies. Despite the original target deadline for minority ethnic directors on boards ending in 2021, the Review continues to monitor progress. Encouragingly, all 100 companies submitted data, with 96 meeting the target, signalling sustained engagement and success.

Among the key findings, 186 ethnic minority directors hold 202 positions (some of these individuals are directors of more than one company), constituting 19% of all director positions, reflecting a one-percentage-point increase from the previous year. Notably, there’s a positive trend in the number of minority ethnic Chairs and CEOs, indicating progress in leadership diversity.

The analysis also highlights gender distribution, with women comprising 49% of minority ethnic directors, and the ethnic breakdown, revealing 56% Asian, 16% Black, 8% Mixed/Multiple Ethnicity, and 20% Other Minority ethnic.

Looking ahead, the Parker Review expands its scope to include senior management representation, with 82 companies providing data. Of these, 13% of senior management are from ethnic minorities, and 48 companies have set targets for 2027.

While progress is evident, challenges remain, with some companies yet to provide data or set targets. However, this year’s report marks a promising step towards fostering greater diversity and inclusion within corporate leadership.