The Hidden Truth
Diversity and Inclusion in the FTSE All-Share
A new report from Women on Boards UK | June 2021
Our new 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.
The Hampton-Alexander Review has provided government backed monitoring and scrutiny of boardroom diversity in the FTSE 350 since 2016. The Parker Review has offered similar on ethnic diversity. However, both initiatives are set to conclude in 2021.
Following the final Hampton-Alexander report earlier this year, we questioned what the next phase looks like along the path to the diversity on boards that Women on Boards is committed to. We knew we needed to understand the data first, and knew that corporate boardroom diversity need not be limited to just 350 firms.
Our report 'The Hidden Truth: Diversity & Inclusion in the FTSE All-Share' 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.
Our findings are best summarised by our CEO, Fiona Hathorn:
"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 data reveals a stark 'diversity divide' between those firms who are making progress on board diversity - and those who are not. Specifically we found that in the 261 FTSE All-Share firms below the FTSE 350:
- under 50% have met the target for 33% women on boards;
- more than 50% have an all-male executive leadership team;
- just 16% have any ethnic diversity on their boards;
- and 37% have one or no female board members.
We also found that the Gender Pay Gap is actually worse in the FTSE All-Share than the national average, and highest of all in the FTSE 350. Our anaylsis of the gender pay gap reports highlighted some clear - if unacceptable - reasons that this high pay gap persists year-on-year.
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