The United Kingdom’s Financial Conduct Authority will now consider ways it can provide investors with a clearer picture of the diversity present in executive management teams and public company boards.
A press statement released by the UK regulator stated it is looking into requiring all public companies to officially publish detailed annual statements that confirm if they have reached specific proposed targets. The goals in question regard the representation of ethnic minorities and different genders on their boards. The yearly reports would also disclose data on what proportion of a firm’s senior management team and board are made up of different genders and ethnicities.
The newly proposed “comply or explain” annual statements would include the following targets: no less than 40 per cent female board members, no less than one woman holding a senior position on the board such as CFO or CEO and no less than one board member from a background of ethnic minority, defined by the UK’s Office for National Statistics.
The financial regulator is also proposing that enterprises ensure current disclosure on their diversity policies always include key board committees, remuneration and nomination, all subject to the previous targets mentioned.
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