Is a deviation from the conventional persona of a British CEO— epitomised by being male, white, and straight — a rarity? A meticulous analysis of the census data by The Executive Magazine sheds light on this inquiry, offering insights into the demographic fabric of business leadership across England and Wales.
A cursory glance at the FTSE 100 reveals a stark lack of diversity — a tally of 11 individuals of colour, eight women (with a ninth on the horizon), and an absence of openly LGBT or disabled figures at the helm of these public limited companies. The question that looms is whether this monolithic representation pervades the broader spectrum of British business leadership.
In a quest for answers, The Executive Magazine delved into the 2021 census data, examining the self-reported age, gender, ethnicity, sexual orientation, and disability status of 122,500 individuals across England and Wales who identified their vocation as “chief executive or senior official”. The findings underscore an underrepresentation of women, disabled individuals, and certain ethnic minorities at this echelon, with a notable rarity of CEOs aged below 30. Conversely, a slightly higher representation of gay and lesbian individuals in leadership roles compared to their prevalence in the general populace was observed.
Joanna Allen, the CEO of British snack brand Graze, remarks on an entrenched predilection among business leaders towards recruiting individuals mirroring their own demographic and experiential background, which inadvertently sidelines a diverse swath of capable individuals.
Examining the Gender Disparity
The gender chasm in executive roles, especially within the UK’s premier listed firms, is palpable. With Allison Kirkby of BT Group slated to assume the role of a FTSE 100 chief executive prior to February 2024, the broader portrait of gender representation across all business enterprises in England and Wales, albeit more balanced, still leans heavily towards male dominance — with males occupying nearly three-quarters of all CEO positions as per the census data.
The gender rift amplifies among older cohorts; while more than a third of CEOs within the age bracket of 20 to 39 are women, this proportion dwindles to less than 10% among those aged over 75.
Hephzi Pemberton, the founder and CEO of Equality Group, attributes this disparity to a concoction of factors including gender biases, differential career advisement, and structural challenges such as unequal pay and caregiving responsibilities.
Ethnic Representation Among CEOs
The census data reveals that a modest 17.8% of CEOs identify with an ethnic background divergent from “white British, Irish and other”. However, a nuanced examination of ethnic subcategories reveals a complex landscape. For instance, while white Irish individuals are nearly twice as likely to be CEOs, those identifying as “gypsy or Irish traveller” are three times less likely to occupy such positions. Similarly, the representation of Chinese individuals surpasses the average, whereas individuals of Bangladeshi or Pakistani descent are among the least represented.
The data challenges a one-size-fits-all approach towards ethnic diversity targets, advocating for a more nuanced understanding to address the underrepresentation of specific disadvantaged groups.
An intersectional lens reveals that merely 5.4% of CEOs are women from ethnic minorities. Despite the gender gap permeating all ethnicities, certain groups exhibit a higher representation of female leaders — 37.9% of Black business leaders are female, a proportion mirrored within the “mixed or multiple ethnicities” category.
Radha Vyas, the co-founder and CEO of Flash Pack, recounts a discernible glass ceiling for women of colour during the onset of her career, compelling her to seize the reins of leadership proactively.
Disability and Leadership
Despite constituting 17.8% of the population, merely 6.3% of CEOs identify as disabled, with a scant 1,350 describing themselves as “limited a lot”.
A study by EY in 2018 unveiled that a substantial 80% of leaders with a “lived experience” of disability chose not to disclose it in the professional arena. If this trend persists, it indicates a minuscule number of CEOs being forthcoming about significant disabilities.
Steve Ingham, a notable disabled CEO until his departure from PageGroup last year, has been one of the few to candidly discuss his disability since a skiing accident in 2019 necessitated the use of a wheelchair.
Sexual Orientation Among CEOs
The census data also affords a glimpse into the sexual orientation of business leaders, with 3.8% identifying as LGBT, a figure slightly above their representation in the broader population (3.2%). However, the FTSE 100 currently lacks any known LGBT leader, possibly a lingering reticence following Lord Browne’s contentious exit from BP in 2007 post being outed by the Mail on Sunday.
The Business Rationale for CEO Diversity
While the moral impetus for fostering diversity is unambiguous, a compelling business rationale also exists. Numerous studies champion the positive correlation between diversity at the CEO level and enhanced corporate performance.
Hephzi Pemberton articulates a shared aspiration for a less biased, egalitarian society enabling individuals to ascend to pinnacle positions within companies irrespective of their demographic background. The commercial incentive for nurturing a diverse pool of candidates is clear, with a potential treasure trove of innovative leaders possibly deterred from vying for influential roles in the current scenario.
