Less than half of the companies outside of the FTSE350 are meeting the targets set out to get women on boards, according to new research.
The report, The Hidden Truth: Diversity & Inclusion in the FTSE All-Share’, conducted by Women on Boards UK, found a stark ‘diversity divide’ between those firms who are making progress on board diversity – and those who are not.
The report examines data for all companies below the 350 in the FTSE All-Share, and also the gender pay gap reports for all FTSE All-Share firms that produce them – both for the first time.
The research specifically found that in the 261 FTSE All-Share firms below the FTSE 350 under 50 per cent have met the target for 33 per cent women on boards and more than 50 per cent have an all-male executive leadership team.
Just 16 per cent have any ethnic diversity on their boards and 37 per cent have one or no female board members.
The report follows on from the findings and targets set out by the Hampton-Alexander Review. The Hampton-Alexander Review has provided government backed montoring and scrutiny of boardroom diversity in the FTSE 350 since 2016. The Parker Review has offered similar on ethnic diversity. However, both inititaitves are set to conclude in 2021.
Speaking about the report, Fiona Hathorn, CEO, Women on Boards UK, said, “Progress on board diversity has been painfully slow, yet, recently, there has been a creeping sense that what has been achieved is ‘enough’ and no more effort is needed.”
“This report categorically shows that more is absolutely needed.”
“It exposes the hidden truth that, beyond the overall number of female non-executives, progress has been extremely limited.”
“Our data also reveals a very significant proportion of FTSE All-Share firms are achieving little, if any, meaningful change as regards to diversity and inclusion.”
The report gives the most comprehensive picture ever of the state of diversity and inclusion across the entire FTSE All-Share.
For the first time, it examines every FTSE All-Share company below the 350 (FTSE All-Share ex350) and brings together the Gender Pay Gap data across those FTSE All-Share companies, who are required to, or choose to, report.