Board Diversity: A Top-Down Recommendation When a Bottom-Up Revolution is Required
Today’s post reacts to the recently published Parker Review , which is a final report led by Sir John Parker in association with Ernst & Young and Linklaters. The report, entitled A Report into the Ethnic Diversity of UK Boards , aims to shine a light on the issue of representativeness on FTSE Boards, with a specific focus on FTSE 100 Boards, and then prescribe some recommendations which it hopes will have a positive effect in this particular field. So, in this post, we will take a closer look at the Report and assess whether it may achieve its aims and, more importantly, whether its aims are even useful or correctly constructed in the first place. We have looked at this issue of representativeness at Board level before here in Financial Regulation Matters , but mostly from a gender-related viewpoint ( here and here ). However, as the Parker Report states in its preamble: ‘ U.K. Boards have made great progress on gender diversity but we still have much to do when it comes t