Category: Functions

In this report, we look at the breakdown of non-executive and executive director appointments and, as we have done in past reports, identify the trends and the individuals
concerned. In this report we also take a brief look at that most contentious and complex of boardroom issues – remuneration
– and challenge the dominance of this subject as evidenced by the fact that the Remuneration Reports of the top FTSE 100 companies average 27 pages or 45% of the Corporate
Governance Reports of those companies.

In this report, we look at the breakdown of non-executive and executive director appointments and, as we have done in past reports, list the individuals behind those numbers. We also look at the gender diversity numbers so we can continue to report on that trend. And for the first time we try to assess the impact of the Government backed Parker Review in 2017 on ethnic diversity in the UK boardrooms. Unlike gender diversity, however, ethnic diversity is not binary and so difficult to assess and, other than the Parker Review Committee, lacks the protagonists and lobbyists to beat the drum loudly enough.

I have been in the privileged position to discuss race and diversity in all its forms with many leading Chief Executives and Chairs. One thing that always struck me was their need for a safe environment. An environment where they could not only challenge me but also their own concepts of race and get a better understanding of privilege in order to make their companies more attractive, better and ultimately more profitable places to work.

Following our 2018 report, we published quarterly updates for the first three quarters of 2019. This report will look at the Q4 appointments, give a summary of the whole of 2019 and examine some of the trends we are now seeing.

There are three standout findings discussed in some more detail in this report. First, we show with absolute clarity the success of the gender diversity movement.

The average age of the non-executive directors governing the FTSE 350 companies is 59. None of them is below the age of 30 and only a handful are even in their 30s, primarily the nonindependent shareholder appointees. For the purposes of this discussion we are excluding 29 year old Cally Price who is an employee/workforce representative appointed to the Sports Direct board (more on this later). The absolute age range is 32 – 84. No one will be surprised to learn that 84% of those non-executive directors are aged between 50 and 70. One hundred and twenty-eight of them are in their 70s and six are in their 80s. The female NED’s average 57 years and the males 60.

This report reviews the FTSE 350 board appointments in the second quarter, April – June 2019 and follows our reports for the full year 2018 and Q1 2019. We again analyse the non-executive and executive director appointments to the FTSE 350 companies and explore the trends. The FTSE 100 appointments in Q2 show a particularly interesting change in direction with, on the one hand, only 28% of the non-executive appointments being women and, on the other, 100% of the executive director appointments being women.