Nominations committees must be more diverse themselves if they are to boost diversity in their organisations, says a report for the Financial Reporting Council.
Nominations committees must become more diverse themselves if they are to increase diversity in boardrooms, according to a new report.
The conclusion comes as part of research that looks into diversity in FTSE 350 companies and also finds that higher levels of gender diversity in the boardroom “positively correlate” to better financial performance, with the boost coming after three to five years.
However, the research could draw few conclusions about ethnic diversity on boards due to low levels of representation making impact difficult to measure.
Conducted by the London Business School Leadership Institute and research consultan
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda