Ethnic diversity in UK boardrooms has improved markedly over the past decade, but the latest Parker Review (the Review) makes clear that sustained, systemic change is still needed, particularly within senior management pipelines.
The Review highlights both the progress and the persistent challenges in improving ethnic representation across UK businesses. Initially commissioned by the government to address the underrepresentation of ethnic minorities on FTSE 100 boards, the Review has since expanded its scope to cover a wider range of businesses including FTSE 250 and large private companies. It also now examines ethnic diversity within senior executive positions, not just boards.
The Review initially set a target for all FTSE 100 boards to have at least one ethnic minority director by 2021 and for FTSE 250 boards to do the same by the end of 2024. In 2023, the Review extended its focus further, asking companies to set their own targets for ethnic minority representation in senior management by 2027. The Review also asked 50 of the UK’s largest private companies to meet the same board diversity targets as FTSE 350 firms by December 2027.
The latest report, a decade after the government commissioned the Review, assesses progress and highlights the need for continued efforts to embed diversity beyond board appointments and into leadership pipelines.
Key findings from the 2025 Parker Review
The Review reports that as of December 2024:
- 95% of FTSE 100, 82% of FTSE 250 and 48% of large private companies have at least one ethnic minority director;
- ethnic minority directors make up 19% of FTSE 100 boards, 15% of FTSE 250 boards and 13% of private company boards;
- ethnic minority executives represent 11% of their UK-based senior management in the FTSE 100 and 9% in the FTSE 250 and private companies; and
- the average target for ethnic minority representation in senior management by 2027 is 15% for FTSE 100 and 13% for both FTSE 250 and private companies.
Progress over the years
After the initial diversity targets were set, progress continues across FTSE 100, FTSE 250 and large private companies:
- FTSE 100 update: Three years after the diversity target deadline, 95 companies have at least one ethnic minority director, a slight decrease from 96 due to board turnover. All 100 companies reported their data.
- FTSE 250 update: Following the December 2024 deadline, 82% of FTSE 250 companies now have at least one ethnic minority director, a 17% increase from the previous year and a fourfold rise since 2019.
- Private companies: As of December 2024, and with three years remaining until the 2027 target for large private companies, 71% of responding private companies have met the 2027 diversity target. Ethnic minorities hold 13% of board positions, up from 11% last year.
Potential FTSE 250 strategies for success
FTSE 250 companies have faced greater challenges than FTSE 100 firms in meeting the Review’s target of appointing at least one ethnic minority director by December 2024. Contributing factors include smaller boards, lower turnover and UK-focused operations with limited international diversity. To drive success, the Review highlights strategies that companies could consider:
- International recruitment: Expanding searches overseas can help diversify talent. With a move away from full-time office work, companies with global operations can adopt hybrid meetings or schedule board meetings abroad to accommodate international recruitment more readily.
- Support and retention: Boards must go beyond initial appointments by building a strong talent pipeline through mentoring, networking and integration initiatives to encourage and sustain long-term diversity.
Driving change in ethnic diversity, equity and inclusion
Change the Race Ratio is a leading diversity campaign backed by the Parker Review. It is led by a group of leading businesses and is focused on driving racial and ethnic diversity in positions of leadership through targets, transparency and best practices. The campaign emphasises the need for strategies around recruitment, training and employee support to further promote inclusive cultures that, in turn, will encourage greater representation at all levels right through to senior leadership roles.
The campaign suggests that companies can drive meaningful change by:
- Committing boldly: Setting clear diversity targets and reporting progress transparently;
- Investing strategically: Developing diverse talent across all leadership levels; and
- Embedding accountability: Linking diversity goals to leadership performance metrics.
Conclusion
Happily, the latest report highlights significant achievements over the past 10 years. Many FTSE 350 companies have met the Review’s core target of having at least one ethnic minority director on their boards. Companies have not delivered this change easily or overnight, reinforcing the role that accountability mechanisms play in sustaining a focus on important business and societal issues.
While progress is evident, continued efforts are essential to extend diversity beyond boardrooms and into senior leadership pipelines. The Review emphasises the key role that having a diverse workforce can play in driving UK economic growth by helping companies to run more effectively and make better decisions at board level.
If you need support in reviewing your diversity strategies or understanding the legal framework surrounding diversity and inclusion, please get in touch with your usual Dentons contact.
