Diversity and Inclusion in all its forms is firmly on the Board agenda with the need for increased representation finally being accepted. Investment firms including Blackrock, Vanguard Inc, Legal & General, Aviva and Blackstone now require investee Boards to show diversity across their leadership teams or risk being voted off.
The move to more diverse leadership requires company-wide acknowledgment, commitment and implementation of policies towards an inclusive environment, ultimately driven by the CEO and Board. Our exposure to senior leaders makes us well placed to share best practice and encourage change.
Clarity is partnering with clients to develop a broad range of diverse networks and has created the Future Board programme, aimed at readying ethnically diverse executives to be eligible for Board roles.
Searches are defined by the job brief, which by its prescriptive nature, can be limiting. Reference to experience, culture fit and track record are often reasons to exclude profiles. We seek to partner with clients to expand the criteria, presenting candidates earlier in the process who can be considered for the role based on a balanced assessment of skills and experiences via an inclusive and open process.
Running in parallel with the shortlist, Horizon Scanning seeks to identify high potential, emerging talent from the same discipline to engage in dialogue for the future. This leads to new networks, mentoring opportunities and in most cases, lessons flowing in both directions.
Outside of a specific search mandate we are creating a talent pipeline of candidates with sector or functional relevance who sit beyond a client’s usual network. Proactive introductions often lead to an exchange of ideas, reverse mentoring and the engagement of executives who would not normally feature in a defined search.
The Future Board programme has been created to help give these individuals early exposure to Boards and contact with Chairs and NEDs.
Identifying, developing and introducing diverse executives who are Board ready. Data on ethnicity across FTSE organisations shows that only 98 out of 868 directors (who disclosed their ethnicity) across the FTSE 100 had ethnic minority backgrounds. In the FTSE 250, there is even lower representation with just 80 out of 1,503 directors (Parker Review, 2020. Our initiative partners with clients to make introductions from beyond the finite number of existing board members with the aim of helping to increase diverse representation on Boards.
In partnership with John Allan, Chairman: Tesco plc, former Chairman at CBI, the Future Board programme has prepared 20 ethnically diverse executives on all aspects of the Board’s function; composition; strategy; audit & risk; RemCo, succession; ESG and critically, “making the leap”.
John Allan Chairman: Tesco plc, former Chairman at CBI
Ian Powell Chairman: Capita plc, former Chairman/Senior Partner PwC
Imran Nawaz Group CFO and Board Director: Tesco plc
Jock Lennox Chairman: Johnson Service Group plc, NED and Chair of Audit Committee: Barratt Developments plc and Audit Committee Chair of the Independent Forum
Simon Laffin Non-Executive Director Watkins Jones Group, Dentsu Group, former Chair Flybe and Assura Author of “Behind Closed Doors” The Boardroom: How to get in, get on and make a difference
Irene Dorner Chairman: Taylor Wimpey plc and Control Risks Group Ltd; Non-Executive Director: Axa S.A. and Rolls Royce Holdings plc
Caroline Silver Chairman PZ Cussons plc; Managing Director Moelis & Co; Non-Executive Director BUPA and Meggitt plc
Ric Lewis Executive Chairman & CIO Tristan Capital Partners; Non –Executive Director Legal & General Group plc
Andy Duff Chairman: Elementis plc, Chair Designate Sage Group plc
Bukky Bird Group Sustainability Director: Barratt Developments plc
The Future Board programme has evidenced that there is a viable pipeline of ethnically diverse senior leaders who are ambitious to step up. Their feedback suggests there is a lack of transparency regarding how to move into a Board role. There is a view that NED recruitment is a closed-loop process and while company strategies are addressing the broader D&I shortage, this is not reflected at the highest levels.
Future Board has facilitated the connection between FTSE Board members and diverse talent, preparing these executives to be eligible for board roles and has given Chairs, SIDs and NEDs exposure to a candidate population rarely seen at the top table. As of April 2022 one of the participants has attained a FTSE Board role and another has been appointed onto a FTSE Exco, leading D&I. A small step in the right direction.
We are the partner of choice for ambitious, consumer-centric businesses that require new, diverse leadership. For over 10 years we have built expertise in the retail, consumer, travel and hospitality sectors, working worldwide. We bring the rigour and global reach from our backgrounds in international search firms, coupled with the personal service, flexibility and expert judgement of a specialist.
We listen, we challenge, we move fast, we deliver. Most importantly, we love what we do.
As a female, founder-led business Clarity has partnered with its clients to address the requirements raised by the Hampton Alexander review concerning gender diversity. In the last three years, 44% of Clarity’s placements have been female and we would like to emulate this achievement in other areas of inclusion.
If you would like to hear more about our Diversity & Inclusion Intitiative please contact Rachel Moffat on rachelm@claritysearch.co.uk or 020 7042 3333.
info@claritysearch.co.uk
+44 (0) 20 7042 3333