Many U.S. companies have been quick to appoint Blacks to their boards of directors as racial justice protests swept the country last year.
But over the past two years, progress on increasing racial diversity on the board has stalled, a new study found on Tuesday. Black men even lost their positions.
In: Board Diversity CensusThe Alliance for Diversity Board Del, a company run by Deloitte Consulting, points to a sharp shortage of companies when it comes to fulfilling its promise of diversity. According to the census, an overwhelming 82.5% of the directors on the Fortune 500 board are white.
The census assumes that by 2020 In May, police assassination by Floyd shocked the national anticipation of systemic racism, with attention to racial diversity taking up some space for gender equality in the courtroom.
Between July 2020 and May 2021, about 32 percent of newly appointed board members in the S&P 500 were séances, according to an analysis by ISS Corporate Solutions, which advises companies to improve shareholder value and reduce risk. That was a jump of 11 percent from the previous year.
But until then, there has been a sharp shift in priorities. The census found that the number of women serving on Fortune 500 boards increased by four percentage points to 26.5 percent between 2018 and June 2020. Progress is faster than the 2% growth of the previous two years.
In contrast, the number of racial minorities on the Fortune 500 boards rose slightly above the percentage point. It was a slower pace than the 2% growth in the previous two years. As a result of the talk, the number of men on Fortune 500 boards from 2018 to 2020. It fell by 1.5 percent in June, even as the representation of women in the SP increased by 18 percent.
The focus on gender equality has strengthened the ranks of minority women on the Fortune 500, although according to their census, their numbers remain small at 6 percent. The number of minority men remained almost unchanged at just under 12 percent.
For racial minorities, who initially have so little space, the findings highlight the need to accelerate the pace of change, said Linda Akutagawa, chairwoman of the Board’s Diversity Alliance.
Asian, Hispanic female filmmakers have seen the biggest growth since 2018. However, according to the study, the raw number of seats in each of these groups was lower than the 209 seats won by white women. White women occupied three new seats for each new seat held by a woman of a racial minority.
Based on its results, the Department’s Diversity Census established a two-year review of public registrations until 2020. June 30. During that time, companies responded to pressure to appoint more women to their boards. California passed a law in 2017 requiring state-owned public trading companies to have at least two or three female directors by 2021, depending on the size of their boards.
Over the past year, there has been increasing pressure on councils to focus on racial diversity. California Gov. Gavin Newsom signed a new law last year that would allow companies to have at least one board member from an underrepresented ethnic community or identified as LGBT by the end of 2021. In December, the Nasdaq submitted a proposal to the US Securities and Exchange Commission to adopt new listing rules that require companies to publish their diversity board statistics.
More than a dozen companies, including Zillow և MMLaFleur, signed a commitment in September to add at least one Black CEO to their boards within a year.
Carrie Owen, a national partner at the Deloitte Council’s Center for Effectiveness, says the type of rapid change shows that the advancement of diversity is a matter of corporate will, not a lack of qualified minority candidates.
“It’s really a choice for councils to take steps to become more diverse,” Owen said.
In April, 140 racial justice leaders published a letter in the Financial Times demanding that the managers of the country’s largest assets oppose all the whiteboards at this year’s shareholders’ meeting. But the letter also called on them to oppose the boards “with a symbolic representation by a clear colored person.”
“The boards surround everyone who is not a white man, they call themselves diverse,” said Eli Kasargod-Staub, executive director of the nonprofit group Majority Action, which sponsored the letter. “This way of framing it often hides the fact that there is only one person of color on their boards.”
In December, Majority Action, in conjunction with the International Union of Employees, released a report showing that 56 of the S&P 500 companies will have all-white boards by November 2020. BlackRock Asset Manager Voted for 52 of These Companies to Approve Full Board According to their report, which cites ISS Analytics և public documents, according to the report, their shareholders’ 2020 Vanguard voted in favor of supporting the entire board of 51 companies.
Some of the fund’s giants have admitted to pushing the courtroom more slowly to appoint more people of color than their advocacy to add more women. But many say the momentum is reversing.
BlackRock said this year that it was raising its expectations on corporate councils on ethnic-gender diversity, and in early 2021 voted against more than 130 councils because of its absence. But it does not have a clear rule of thumb as to how many colored people should be on the board, it is like expecting American companies to have at least two women on their boards.
Vanguard has revised its proxy voting guidelines to warn that it will vote against some candidates on the board of companies whose lack of diversity is a concern. But the avant-garde spokesman said the investment giant believed that “there is no one-size-fits-all mandate for board diversity” and that each board would be assessed individually.
Street Street Global Advisors, which stands behind the Fearless Girl statue near Wall Street, said it would vote against the chairman of the S&P 500 Board of Directors next year if it failed. have at least one underrepresented minority. This year, it began voting against the nominations of presidents of companies that could not identify the racial-ethnic composition of their board.
“We saw that progress was not fast enough,” said Benjamin Colton, co-chair of the asset economy on State Street. “It was difficult for us to even assess the progress, because we did not have that discovery.”