There has been little attention on board diversity in companies below the FTSE 350. Which is why it is significant that this new report published by ‘Company Matters’ is directing the spotlight on diversity in AIM and FTSE Small Cap companies. It is timely and a good start to map out the landscape.
With more pressure from the public on transparency, can trust be built from smaller sound UK businesses ‘doing the right thing’ and behaving as ‘good corporate citizens’?
The study includes the boards of 100 largest companies of the FTSE Small Cap index (FTSE SMC 100) and in the AIM 50 index in this report, Here are some of the findings:
- Board diversity is increasing but remains low. Only 15% of directors are women and 36% have all-male boards in the AIM UK 50.
- In FTSE Small Cap index the gender balance is more encouraging with 28% being women. 44% of new appointments in the last 18 months were women and the majority are in CFO or DF roles.
- Ethnic diversity is very low and showing very little change. More than 95 per cent of directors are white and over 80 per cent of boards are all-white.
- There is greater age diversity on their boards, particularly in male directors who range from 40 to 80+.
- It is disappointing that only one in six FTSE SMC 100 companies state that they don’t regard diversity as part of their appointments. Even worse in the AIM 50 UK, where 42 per cent have no mention or policy on diversity.
It is crucial that we start addressing diversity in companies below FTSE 250, they are a major talent pipeline for future EDs and NEDs.
Please download report for further details.