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L&G tells FTSE 100 firms to hire BAME board members or face vote backlash

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  • 05/10/2020
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L&G tells FTSE 100 firms to hire BAME board members or face vote backlash
Legal & General (L&G) has told more than 30 FTSE 100 companies with all white boards that unless they hire an ethic minority director by 2022 it will vote against them.

 

The financial services giant has made the demand, reported in the Times, in the wake of this summer’s Black Lives Matter protests.

The company wrote to all companies in the FTSE 100 and those listed on the S&P 500 in the US to tell them it expects them to hire at least one director of Black, Asian or other minority ethnic (BAME) origin in the next 15 months.

According to the Times, in a communication to its clients, L&G said: “The horrifying killing of George Floyd and so many others has led many institutional investors to think much more seriously about structural racism and inequality.”

L&G manages £1.2trn of assets for pension funds and other investors. It owns around two to three per cent of almost every British blue chip company.

It told the FTSE 100 firms that it will vote against the re-election of the company’s nomination committee chairmen if they fail to meet this target.

Nomination committees are the main board panels responsible for board appointments.

Data published in L&G’s report on diversity shows that 52 per cent of companies in the FTSE 100 had all white boards.

 

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