Black women least likely to be top earners

Black women are under-represented and underpaid in executive roles and the least likely to be in the UK’s top 1% of earners. Black women continue to be underrepresented in leadership roles across the UK workforce.

The Inclusion Initiative at LSE, Mastercard and the 30% Club collaborated to undertake interviews with 44 Black women at various stages in their careers. The study was designed to  understand the headwinds and tailwinds that these women experienced throughout their career, with the view that firms interested in nurturing talented women could focus on augmenting the tailwinds that these women experience, as well as reducing their headwinds.

The analysis led to the creation of the TRANSPARENT framework, a new framework to create organisations that are inclusive of Black women in Finance, Professional Services and Big Technology. 

  • Key highlights from the report include:

     

  • 92% of the women we interviewed called for systemic change within their workplaces.
  •  
  • Black women also experience the largest pay gaps when compared to non-Black women and men, as well as Black men (Almeida et al. 2021).

  • The largest gaps are in finance, professional services, and big technology. 70% of Black women in these sectors believe they are being paid less than their comparable peers, with more than 10% of women reporting pay gaps as high as 30%.

     

    From the analysis, the researchers created the TRANSPARENT framework to create organisations that are inclusive of Black women in Finance, Professional Services and Big Technology.

 
Deloitte web post graphic (6)

30% Club global chair and Mastercard executive vice chair Ann Cairns said: 

 

“We were delighted to partner with the London School of Economics on this research, to better understand the barriers Black women face in the workplace. Anecdotally, we have been hearing that Black women experience the most negative impact when it comes to progression in the workplace, specifically in the areas in which we operate; technology, financial and professional services and we undertook this research to validate that.

This thought-provoking research and the TRANSPARENT framework will be used to inform our own future activities and policies going forward within Mastercard. I hope they will also be of use to many other companies wanting to leverage it and tackle the issue within their organisations.”

The Inclusion Initiative (TII) at the LSE, Mastercard and the 30% Club hope to inspire firms to adopt these actions. Moreover, it is envisioned that companies will evaluate the effectiveness of these actions, making transparent the evaluation results.

This transparency allows firms to learn together ‘what works’ for the fair inclusion of Black women in finance, professional services and big technology. Given that the pay gaps experienced by Black women are the largest in the sectors studied, making Black women the benchmark for real change within organisations is appropriate. 

Training, recruitment, operations, promotions, procurement, strategies, and policies should be evidently inclusive of Black women. The call for greater transparency through reporting, audits and monitoring of the progress of Black women will help ensure firms are on track.

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Where we are

The 30% Club has come a long way from when it was set up in the UK in 2010.We now span six continents and more than 20 countries. We’re actively expanding into more G20 countries

Women in Leadership Stats – March update (UK)

March 22 LinkedIN Stats post

The UK’s biggest 100 companies are on the brink of hitting 40% female representation at board level. 

Our latest stats reveal the FTSE 100 average is 39.9%, as of March 2022. 

The FTSE 100 hit the 30% critical mass in September 2019, meaning there has been rapid and significant progress in the past two years.

That’s precisely why our campaign is working with companies all over the world to strive for the 30% mark. 

Of course, the real goal is goal is PARITY.

Our minimum UK objectives by 2023 are:  

  • Beyond 30% representation of women on all FTSE 350 boards, to include one person of colour We support the Parker Review goals for at least one person of colour on every FTSE 350 board.
  • Beyond 30% representation of women on all FTSE 350 Executive Committees, to include one person of colour.
  •  
  • Beyond 30% of all new FTSE 350 Chair appointments to go to women between 2020 and 2023.

 

March 2022 saw women’s representation on FTSE 100 boards reach an average of 40% for the first time in history.

While we celebrate this milestone, there is still much work to do across FTSE 250 and 350, not least of which on ethnic representation – only 178 board positions is in the FTSE 350 are held by directors of colour, with just 77 of those positions held by female directors of colour (Parker Review, November 2020).

Furthermore, there are still 38 FTSE 350 companies at less than 30% women on boards. But as of March 2022, there is at only one FTSE 350 company with an all-male board and the number of all-male ExCos is falling.

March 22 LinkedIN Stats post (4)

With just 24% of FTSE 100 Executive Committee roles currently (as of 1 April 2022) held by women, achieving at least 30% by 2023 represents a significant but achievable challenge.

Driving progress will require ongoing investment from CEOs and leadership teams in developing the pipeline of female directors. It will also require demand by investors, leadership from board chairs, commitment by nominations committees and action from head hunters, and of course it also requires ongoing investment from CEOs and leadership teams in developing the pipeline of female directors.

Out of 100 companies, the UK still only has 8 female CEOs, 18 female CFOs and 17 female Chairs. This shows that the 30% Club still has work to do even though they have reached our 30% on Boards target. 

We encourage individuals and organisations to support our work and help us in our quest to increase the number of women on company boards and at senior management level.

What you can do to help us:

Become a Chair or CEO Member (please check UK webpage for criteria)

Call upon your own organisation to introduce targets for women in leadership

Share information on the 30% Club with your colleagues and networks

Encourage lagging companies to improve their diversity efforts 

FTSE 100 meets Parker diversity target

Parker Review

FTSE 100 hits 2021 target

The Parker Review target for the FTSE 100 to have at least one board director from an ethnically diverse background by the end of 2021 has largely been achieved. 

The latest update from the Review has confirmed 89 FTSE 100 companies achieved the target by the deadline of December 2021. A further five have announced new ethnic director appointments in early 2022 and another three report they are actively engaging in recruitment.

Across the FTSE 100, 16% of board directors are now ethnically diverse, and 49% are women. 

The Review states: “These numbers compare starkly and very favourably with the position back in 2016, when only 47% of FTSE 100 companies had people from minority ethnic groups in their boardrooms. The number of companies with minority ethnic directors has doubled.

“We are also encouraged to note that the number of people from minority ethnic groups on FTSE 100 Boards splits evenly between genders, with women comprising 49% of the minority ethnic directors.”

Across the FTSE 250, where the deadline is the end of 2024, 12% of board directors are now from ethnically diverse backgrounds and 44% are women.

At the executive level, there hasn’t been as much progress. The Review states: “As expected, the great majority of these board positions are as non-executive directors.” 

There are also only six CEOs and 12 other executive directors across the FTSE 100 who come from a minority ethnic group. And there are only three board chairs from a minority ethnic group background. 

At the launch of the Review’s latest update, Secretary of State for BEIS Kwasi Kwarteng, said: “Never has there been a more compelling evidence base for the value of building diversity into business, all the way up to the Boardroom.

“Never has it been more clear that British business is seizing the initiative, responsive to the fact that drawing in talent across the diversity of society drives increased value to companies and makes good business sense. 

Leaders for race equity

“Business and Government are united in our shared belief in equality of opportunity to deliver a business environment that rewards meritocratic achievement: discovering, developing, and rewarding talent — irrespective of background.

“Out of uniting around the common goal of excellence, I have every faith that British business and the UK economy will build back better out of this pandemic.”

The update comes just two weeks after the 30% Club UK Investor Group issued a statement addressing the lack of racial and ethnic diversity in UK business and outlined the action it is taking to make positive change.

Members of the group who have signed up to the statement have more than £11 trillion assets under management. 

In February, the group sent letters to the FTSE 100 companies its independent research suggested had yet to meet the Parker Review targets.  

The letter warned the companies that investors may consider voting against companies at their annual general meetings if they fail to take action.

If your company wants to take action to make its senior leadership team more diverse, we have teamed up with Change the Race Ratio and Moving Ahead to deliver the Leaders for Race Equity CEO development programme.

The nine-month cross-company programme for CEOs and minority ethnic group leaders who are in the Exco talent pipeline to share and learn from each other’s experiences and shape strategic action. To find out more, please contact our delivery partners Moving Ahead by emailing race.equity@movingahead.org.  

Where we are

The 30% Club has come a long way from when it was set up in the UK in 2010.We now span six continents and more than 20 countries. We’re actively expanding into more G20 countries

30% Club UK Investor Group statement on addressing racial inequality

COVER IMAGE - INVESTOR GROUP STATEMENT (9)

Challenge for change

The 30% Club UK Investor Group has issued a statement addressing the lack of racial and ethnic diversity in UK business and outlined the action it is taking to make positive change.

“As institutional investors, we can contribute to addressing these inequities by taking concrete steps to promote diversity and inclusion across our portfolios and within our organisations,” it states.

Members of the group who have signed up to the statement have more than £11 trillion assets under management. 

The group has sent letters to the FTSE 100 companies its independent research suggests have still to meet the Parker Review targets of at least one board member and executive committee member from an ethnic minority background. They were meant to have done so by the end of 2021.

The letter warned the companies that investors may consider voting against companies at their annual general meetings if they fail to take action.

The Investor Group is committed to actively engage with UK company board chairs, nomination committees and executive teams on the issue of racial inequality in their leadership ranks and workforce.

The publication of the statement builds on the UK chapter of the 30% Club introducing race and ethnicity targets in July 2020. Those targets include members of the Club across the FTSE 350 having at least one person of colour at board and executive committee level by the end of 2023*. And as the 30% Club campaign is focused on gender, we expect at least half of those appointments to go to women of colour.

While the 30% Club works directly with CEOs and Chairs to encourage change, the Investor Group’s been working on improving the availability of data on race equity within the FTSE 100 by engaging with ESG data providers and supporting the creation of new data platforms, such as through its partnership with Diversio.

The Group is also running a race equity training programme for its members to ensure that all investors, big and small, are equipped to take action with the companies they invest in.

COVER IMAGE - INVESTOR GROUP STATEMENT (12)

Diandra Soobiah, co-chair of the 30% Club UK Investor Group, said: “Diversity and inclusion in companies are integral to sound corporate governance and corporate culture. As long-term investors, we see the failure to take diversity seriously as a stark warning about the long-term sustainability of the company.

“Time is up for organisations that seek to simply tick boxes. The 30% Club Investor Group is putting FTSE companies on notice – the laggards need to do much better, and we’re willing to help.

“We all have an important role to play to ensure persistent race inequities in business and our society are addressed. As investors, we can have stronger dialogue with the companies we invest in, with a view to improving diversity and inclusion within companies in the UK.”

Ann Cairns, global chair of the 30% Club, said: “The 30% Club’s UK Investor Group issuing this statement is a significant moment for the UK investor community. With ESG rightfully gaining prominence in the board rooms and executive offices of the world’s biggest companies, addressing racial inequity is imperative for all asset managers.

“It could make a major contribution to delivering the change businesses, economies and societies so desperately need to see. I am tremendously grateful for the hard work done by the co-chairs and members of the 30% Club UK Investor Group to take a stand on racial inequality.”

*The 30% Club’s UK chapter set the 2023 deadline for the FTSE 350 as a stretch target for our FTSE 350 members to help meet the Parker Review target by the end of 2024.

Where we are

The 30% Club has come a long way from when it was set up in the UK in 2010.We now span six continents and more than 20 countries. We’re actively expanding into more G20 countries

FTSE Women Leaders Review Launch

COVER IMAGE - FTSE WOMEN LEADERS POST (1)

UK closes in on 40% women at board level

The UK has climbed to second in the international rankings for women’s representation at board level. 

Almost 40% of UK FTSE 100 board positions are now held by women, compared with 12.5% just ten years ago. And there are almost 38% women on board across the FTSE 350.

The data has been published in a new report by the Government-backed FTSE Women Leaders Review, which monitors women’s representation in 24,000 positions on FTSE 350 Boards and in Leadership teams of the UK’s biggest companies, building on the success of the previous Hampton-Alexander and Davies Reviews.

 

What this new data from the FTSE Women Leaders Review reiterates is that we don’t need mandates - aspirational targets change not just the numbers but also the culture inside companies.

Ann Cairns, 30% Club global chair

Key highlights from the report include:

  • Almost 40% of UK FTSE 100 board positions are now held by women, putting the UK second in international rankings for board representation.
  •  
  • FTSE 100, 250 and 350 all improved the number of women in Leadership roles in 2021, with the Government’s and 30% Club’s voluntary, business-led approach paying dividends.
  •  
  • The new review also sets out bold recommendations to build on this progress, including a voluntary target for FTSE 350 executive leadership teams to achieve 40% female representation by the end of 2025. It is currently less than 20%, according to BoardEx data.
  •  
  • It is also asking FTSE 350 companies to have at least one woman in the Chair, Senior Independent Director role on the Board and/or one woman in the CEO or CFO by the end of 2025. There are just 18 and 48 at present, that’s 5 and 14% respectively. 
  •  
  • The Review has also increased in scope beyond the FTSE 350 companies to include the largest 50 private companies in the UK by sales.

The 30% Club welcomes the extended focus of the Review. 
Deloitte web post graphic (6)

30% Club Global Chair Ann Cairns said: 

 
“The 30% Club, The Women in Finance Charter, Hampton Alexander (now the FTSE Women Leaders Review), the Parker Review and most recently 25×25 and the FCA/Bank of England white paper all have similar and complementary aims. Strategic collaboration will make all the difference in seeing the progress we’ve seen in the boardroom play out at executive committee level and result in more female CEOs and significantly more leadership opportunities for women of colour. We are a multi-racial society, and it’s high time our boards an executive leadership teams reflect that. 
 
“What this new data from the FTSE Women Leaders Review also reiterates is that we don’t need mandates – aspirational targets change not just the numbers but also the culture inside companies.” 

Business Secretary, Kwasi Kwarteng, said: 

“UK businesses have made enormous progress in recent years to ensure that everyone, whatever their background, can succeed on merit – and today’s findings highlight this with more women at the top table of Britain’s biggest companies than ever before.

“However, we should not rest on our laurels, and the FTSE Women Leaders Review will build on the success so far of our voluntary, business-led approach to increasing women’s representation on boards and in leadership, without the need for mandatory quotas.”

Minister for Women and Equalities, Liz Truss, said:

“It is excellent to see the progress being made, but we know there is more to be done. This Government is committed to levelling up all parts of our country, working to tackle inequality and promoting equality of opportunity, including at senior level, so everyone can thrive.”

COVER IMAGE - FTSE WOMEN LEADERS POST (5)

Here are the four new recommendations of the FTSE Women Leaders Review in full:

The voluntary target for FTSE 350 Boards & for Leadership teams is increased to a minimum of 40% women’s representation by the end of 2025

  •  
  • FTSE 350 companies to have at least one woman in the Chair, Senior Independent Director role on the Board and/or one woman in the Chief Executive Officer or Finance Director role by the end of 2025
  •  
  • Extending the scope of the FTSE Women Leaders Review beyond FTSE 350 companies to include the largest 50 private companies in the UK by sales
  •  

These recommendations aim to increase gender balance further, bringing new focus to the appointment of women at the highest levels of British business, particularly in those companies that are still lagging behind.

Where we are

The 30% Club has come a long way from when it was set up in the UK in 2010.We now span six continents and more than 20 countries. We’re actively expanding into more G20 countries

Deloitte and 30% Club reveal latest global women in the boardroom stats

Deloitte web post graphic

Progress but it's slow

Deloitte, in collaboration with the  30% Club, today released the seventh edition of  Women in the Boardroom: A Global Perspective. 

It includes updates from 72 countries on representation of women in the boardroom, exploring insights on the political, social, and legislative trends behind these numbers. 

It found that nearly all countries have local organisations or governments committed to increasing the number of women serving on company boards.

While these private and public sector efforts demonstrate steps toward achieving parity, the pace of collective progress needs to pick up.

People often ask why the 30% Club is not the 50% Club given that our aim is parity. I think this report answers that question, we are still far from the 30% tipping point in many geographies

Ann Cairns, 30% Club global chair

Key higlights from the report include:

Globally, only one in five board seats are held by women           

A smaller group of women are taking on a large number of board seats – referred to as the ‘Stretch Factor’

Report reveals a disconnect between women holding roles on boards and in the executive.

Globally, only 6.7% of board chairs are women, and even fewer CEOs – 5% – are women

A global average of 19.7% of board seats are held by women, an increase of 2.8% since 2018 compared to a 1.9% increase in the period from 2016 to 2018

Companies with women CEOs have significantly more balanced boards than those with male CEOs: 33.5% vs 19.4%

Only three in 10 board seats held by women in UK behind leaders France, Norway and Italy in boardroom diversity

However, UK enters into top 10 global ranking and could reach boardroom gender parity by 2027.

Deloitte web post graphic (6)

Commenting on the report, which includes commentary from 30% Club chapters, global chair Ann Cairns said: “With the FTSE 100 on the brink of attaining 40% women in board roles, I am encouraged by Deloitte Global’s finding that UK parity could be reached by 2027. 

“People often ask why the 30% Club is not the 50% Club given that our aim is parity. I think this report answers that question, we are still far from the 30% tipping point in many geographies.” 

She added: “One of the report’s most interesting findings is the real balance that female leaders bring. If women CEOs can have more balanced boards, there’s no reason that male CEOs can’t.

“Finally, on the stretch, this speaks to the fact that women have a harder time being appointed if they don’t have previous board experience. Chairs and CEOs should be encouraged to give women their first board seat. 

“There is plenty of talent out there who would make great directors. This is very true for people of colour too, many of whom would welcome the chance to make a significant contribution at the top of the corporate world but remain significantly under-represented.”

 

Sharon Thorne, Deloitte Global Board Chair and member of the 30% Club, said: “While it’s heartening to see that the world continues to make progress towards achieving gender parity, with the exception of a few countries, overall progress remains slow and uneven.

 

“The pandemic has further challenged progress in achieving equality, making it even more important to move past discussion and take concrete actions to ensure inclusion within and beyond the boardroom including gender, ethnic and racial diversity among other characteristics.”

 

She adds: “Increasing the number of women on boards is only the first step on a larger journey.”

Where we are

The 30% Club has come a long way from when it was set up in the UK in 2010.We now span six continents and more than 20 countries. We’re actively expanding into more G20 countries

Women are the most likely changemakers for climate action

Oliver Wyman web post graphic (5)

Stronger together

Diversity and climate are top priorities for CEOs and boards of directors, but almost none have considered how linking the two management priorities could accelerate their transition to net‑zero emissions.

As the Oliver Wyman Forum and the 30% Club prepared for COP26 in Glasgow, we set out to uncover what can be achieved when diversity, and specifically gender representation, is included in companies’ climate change plans.

The question was more difficult to answer than we had anticipated. For example, starting with large data sets, we looked at how corporate diversity and climate outcomes might be correlated. Relationships were positive but statistically weak. However, with so many factors at play, we felt that focusing solely on these high‑level numbers was a red herring.

As our research and interviews with more than 20 companies progressed, it became clear that not only are women often excluded from many high-level government and corporate discussions on climate, their role as climate-action changemakers is largely unrecognized and underestimated.

Yet businesses need to include female colleagues, customers, and investors if they are serious about meeting net-zero carbon emissions by 2050.

We consider this report as just the beginning of research on what can be achieved if a greater mix of people — including women — is more explicitly included in companies’ attempts to reach net-zero emissions.

This report talks about action from corporations deliberately. Clearly, this must be taken together with action from governments, the third sector, civil society, and beyond.

Oliver Wyman web post graphic (6)

We are grateful for your understanding over this report’s limitations — for example, our focus on women in Western countries and a binary view of gender that is not inclusive of all identities and experiences.

We recognize that we do not cover intersectionality or other dimensions of difference, such as race and ethnicity, primarily due to a lack of data.

Despite this, we felt it important to continue and hope the report will have some impact in driving greater awareness and understanding of the critical linkages between these issues.

We thank and are grateful to the many colleagues who were willing to share their expertise and the companies we interviewed. We hope you find our initial research helpful as you consider your transition plans and look forward to continuing the conversation and research.

Rupal Kantaria
Partner, Oliver Wyman Forum

Ann Cairns
Global Chair, 30% Club and Executive Vice Chair, Mastercard

Where we are

The 30% Club has come a long way from when it was set up in the UK in 2010.We now span six continents and more than 20 countries. We’re actively expanding into more G20 countries

Development Digest: Maximising Knowledge for Development

World Bank Publication Issue 4

Women on Boards in Malaysia
Using firm-level data for 806 public-listed companies in Malaysia, we highlight the extent of women’s participation as board members in Malaysia benchmarked against other countries.

How this women’s participation varies by industry and firm-size is considered, along with its potential impact on the company’s performance.

About 13 percent of the board positions in Malaysia filled by women and the rest by men in 2017. Moreover, the trend over the last four years reveals a slow pace of increase in the proportion of women board members.

The largest 100 firms and some industries such as finance show a greater tendency to have female vs. male board members. The profit rate is significantly positively correlated with proportionately more female board members in a firm, suggesting a “business case” for more women on the boards. Read here Development Digest: Maximising Knowledge for Development

HAYS Launch 2017 Asia Gender Diversity Report

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Good Practices on Gender Diversity in Corporate Leadership for Growth

APEC Publications ( APEC#216-PP-01.1)

This report presents the outcome of a survey that was undertaken to establish how women directors enhance corporate values in companies within the APEC region.

The mechanism of improving corporate values through the appointment of women directors were demonstrated. Case studies were also conducted through interviews with leading companies in APEC (Canada; Japan; Korea; Malaysia; Mexico; the Philippines; and Viet Nam) that are considered to have achieved positive impact on growth through gender diversity.