On 2 November 2016, the Parker Review Committee published a consultation version report summarising the findings of a review of the ethnic diversity of UK boards. It found that ethnic minority representation on the boards of such companies is disproportionately low, and made recommendations with three key aims for members of the FTSE 100 and FTSE 250:
- Increase the ethnic diversity of boards through director targets and policies to identify and consider qualified people of colour for board appointments.
- Develop mechanisms to identify, cultivate and promote people of colour candidates for the pipeline and plan for succession. Existing directors should mentor and/or sponsor employees of colour, and companies should encourage and support candidates drawn from diverse backgrounds, including people of colour, to take on board roles internally and with external organisations.
- Enhance transparency and disclosure. The board's policy on diversity and a description of actions taken should be set out in a company's annual report. Companies not meeting board composition recommendations by the relevant date should disclose why they have not been able to achieve compliance.
Comments on the report are requested by 28 February 2017, after which a report containing the final recommendations and findings of the review will be published.
The consultation version can be accessed here: http://www.ey.com/Publication/vwLUAssets/ A_Report_into_the_Ethnic_Diversity_of_UK_Boards/$FILE/Beyond%20One%20by%2021%20PDF%20Report.pdf
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