Director Tip Sheet: Filling in the Missing Pieces on Boardroom Diversity

Despite a few gains for some demographic groups, the findings of the Missing Pieces Report: The 2018 Board Diversity Census of Women and Minorities on Fortune 500 Boards indicate that progress on board diversity remains slow. This news comes amid converging trends that are pushing public-company boards to diversify more quickly. Among them are shifting US demographics and a growing body of research that links greater diversity with stronger value creation and risk mitigation. In response, investors and some state legislatures are increasingly urging public companies to enhance efforts around diversifying their boards or risk negative proxy votes and/or monetary fines. These developments collectively suggest that pressure to accelerate boardroom diversity is unlikely to abate anytime soon.

This tip sheet offers guidance on the following topics:

• The current state of diversity in the boardroom
• How to make the business case for greater board diversity
• Methods for building urgency around diversity and inclusion
• Tips for accelerating minority and women board representation, or “filling in the missing pieces faster”

The Current State of Boardroom Diversity

Where are we now?

Minority and female representation on Fortune 500 boards is increasing, but it is not keeping pace with shifting demographics in the United States. The Missing Pieces Report, a multiyear study published by the Alliance for Board Diversity (ABD) in collaboration with Deloitte for the 2016 and 2018 censuses, further illuminated the slow progress made in diversifying boards since 2010.