Chuka Umunna demands an end to all-white FTSE 100 boards

Speaking out: Labour MP Chukka Umunna
Anthony Devlin/PA Wire
Joseph Watts28 October 2015
WEST END FINAL

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Two prominent politicians today called for an end to “all-white” boards at FTSE 100 companies.

Labour MP Chuka Umunna and former Liberal Democrat business secretary Vince Cable said the Government should set a target to achieve the goal by 2020. In an article for the Standard, the pair condemned poor progress towards ethnic diversity on boards, highlighting that there are just four non-white chief executives at FTSE 100 firms.

Their comments come ahead of a report expected to underline the progress made towards achieving gender equality on boards, while exposing firms which are lagging behind.

Mr Umunna, who last month stepped down as shadow business secretary, and Mr Cable warn in the article that ethnic diversity on boards has “gone into reverse”. They say: “Today, there are just four non-white CEOs of FTSE 100 companies following the departure of Tidjane Thiam from Prudential earlier this year.

“We cannot carry on like this. It sends a terrible message to the next generation of young Britons with an ethnic minority heritage.”

They add: “Let’s set a goal now for ethnic minority representation on FTSE 100 boards to be met by 2020.”

They back the target suggested by the 2020 Campaign, led by Lenny Henry and Trevor Phillips, of aiming for no all-white boards in the FTSE 100 by 2020.

Mr Umunna and Mr Cable also suggested amending the 2006 Companies Act regulations to require companies to report the number of ethnic minority employees on boards and in senior management.

They also called for Labour peer and businessman Lord Davies to carry out a review into ethnic diversity, just as he is set to deliver his final report into gender diversity in boardrooms.

Lord Davies set a target for one out of four directors at blue-chip firms to be women, a figure which was reached earlier this year. It is widely expected that his report, due tomorrow, will suggest lifting the target to 30 per cent female representation among corporate directors.

Under new rules set out by David Cameron and equalities minister Nicky Morgan earlier this week, large employers will have to publish information on bonuses paid to men and women as part of gender pay gap reporting.

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