Diligent Research Reveals Massive Gaps in How Diversity is Defined and Represented on Corporate Boards Globally
While progress has been made in driving gender diversity on corporate boards, there are still massive gaps in how diversity is defined and represented on boards around the world, according to Diligent, the global leader in modern governance providing SaaS solutions across governance, risk, compliance, audit and ESG. In fact, new research – revealed at the Modern Governance Summit today, September 12, 2022 – shows that boardroom diversity by race, ethnicity, age and LGBTQ+ representation lags significantly behind gender diversity globally.
The inaugural Board Diversity Gaps: The Global Modern Leadership Report is the first ever global analysis of several major dimensions of boardroom diversity including gender, race/ethnicity and nationality, skillset and LGBTQ+ representation. Produced by Diligent, in collaboration with 22 partnering organizations around the world, the report provides a first-of-its-kind holistic view into the progression of diversity and inclusion on public and private boards worldwide.
“Diversity has risen up the boardroom agenda as organizations face increasing pressure to better reflect the diversity of their customer bases and communities, but progress has been slow and there are still many gaps when it comes to reporting on race, ethnicity and LGBTQ+ representation on boards,” said Lisa Edwards, President and COO of Diligent and board director at Colgate-Palmolive. “This report provides new, critical insights into how boardrooms worldwide are progressing against diversity goals and where there is still much work to be done.”
Among the top findings of the Modern Leadership Report:
- Diversity by directors’ nationality, race and ethnicity lags gender diversity globally, with the majority of analyzed countries not disclosing the ethnicity of each of the directors on the board. The percentage of S&P 500 directors from underrepresented racial/ethnic groups is only 22% and has not increased since 2021. Meanwhile, the percentages for Fortune 100 and 500 boards are 17.5% and 20.6% respectively as of 2020, and 24% for the Russell 3000 as of June 2022.
- Director appointments are far from gender parity. Only 36% of director appointments through May 2022 were female, on pace with the average for all of 2021. Female directors currently hold approximately 27% of public company board seats, up from 26% in 2021 and a four percentage point increase from 2019.
- Female directors trend younger than their male counterparts and have shorter tenures. The average age of female directors is roughly four years younger than their male counterparts, at 60 and 63.5 respectively. Female directors also have shorter tenures than their male counterparts at 4.7 years compared with 7.6.
- The issue of LGBTQ+ representation significantly lags behind other elements of boardroom diversity, with the U.S. being the only region analyzed that provides this data. Members of the LGBTQ+ community hold only 0.5% of board seats in the Fortune 500.
- New expertise types are being added to the boardroom, with 35% of newly appointed board directors bringing skillset backgrounds in areas like technology, marketing, sales, HR, ESG and legal in 2022.
- All-Male Boards Persist for Private Companies. In a review of 228 private growth-stage companies, Diligent found 58% have all-male-boards, compared with only 6% of publicly traded companies. Women hold approximately 11% of board seats on these private companies compared to 27% in public companies.
“The global picture of boardroom diversity today is varied and full of gaps, but what’s overwhelmingly clear is that gender diversity is the primary focus for boards around the world. Board diversity regarding race, ethnicity, age and LGBTQ+ representation fall woefully behind,” said Dottie Schindlinger, Executive Director of the Diligent Institute. “By better understanding the state of boardroom diversity across the globe, we’re able to increase the odds that corporate leadership opportunities will be made available to underrepresented groups.”
Like many organizations in recent years, Diligent has made concerted efforts to better understand and advocate for boardroom diversity. In 2020 Diligent launched Modern Leadership, an initiative to provide boards and senior leaders with the research, insights, partnerships and technology they need to further catalyze diversity in their organizations. This includes the Diligent Director Network — the largest and most diverse community of board-ready executives globally.
Read the full report here: https://www.diligent.com/board-diversity-gaps/
About the Report
The Modern Leadership Report is authored by Diligent Institute, the research arm and think tank of Diligent. Using a combination of quantitative data from company filings, surveys of corporate board members, practitioner insights and director interview, the report aims to provide a more holistic story about the progression of diversity and inclusion on public and private companies worldwide across the United States, Latin America, Europe, Asia and Australia.
The report includes contributions from twenty-two external partner organizations including the Alliance for Board Diversity (ABD), Ascend, Better Boards Initiative, BoardReady, The Center of Excellence for Sustainable Environment and Social Inclusion (COE-SESI), Corporate Board Member, California Partners Project, the Director Diversity Initiative at University of North Carolina, the ESADE Centre for Corporate Governance, European Women on Boards, Hawkamah, Human Resource Governance Leaders (HRGL), INCAE, the Institute of Directors in India, Institut Luxembourgeois des Administrateurs (ILA), the Latino Corporate Directors Association (LCDA), Out Leadership and the OutQUORUM Initiative for LGBTQ+ Board Diversity, Spencer Stuart, the University of Lagos, WTW and Women Business Collaborative. Diligent ESG business unit also partnered on the report providing data and commentary to the report.
Diligent is the global leader in modern governance, providing SaaS solutions across governance, risk, compliance, audit and ESG. Serving more than 1 million users from over 25,000 customers around the world, we empower transformational leaders with software, insights and confidence to drive greater impact and lead with purpose. Learn more at diligent.com.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
Senior Communications Manager, Diligent
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Seoul Semiconductor Participates in the World’s Biggest Lighting Expo Held in Germany to Showcase its High-Efficiency & Performance LED Lighting Systems30.9.2022 11:00:00 EEST | Press release
Seoul Semiconductor Co., Ltd. (KOSDAQ: 046890), a globally recognized optical semiconductor manufacturer, takes part in ‘Light + Building 2022’ held in Frankfurt, Germany, from October 2 to 6, 2022 to unveil its high-efficiency and high-performance LED lighting solutions. This lighting festival is one of the world’s largest lighting expos attended by more than 200,000 visitors from 55 nations in the world. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220930005011/en/ [Photo] Seoul Semiconductor’s Booth for ‘Light + Building 2022’ (Photo: Business Wire) Seoul Semiconductor is expected to showcase differentiated lighting systems including ‘WICOP technology-based high-efficiency lighting solutions’ and ‘SunLike technology for reproducing natural light.’ WICOP high-efficiency lighting systems are mid- and high-power solutions that are mainly applied to landscape & horticulture lighting and street lamps. They outperform existin
Turkey is Calling Europe for Flight Trainings30.9.2022 10:30:00 EEST | Press release
Alfa Holding’s Aviation Services, Turkey’s rapidly growing private aviation services company, has met with leaders from European capitals to promote Turkey as a leading European flight training hub. Turkish civil aviation has received significant investment in recent years, developing into an important center for Europe in terms of civil aviation training. Turkey’s climate conditions and its first-rate, state-of-the-art equipped airports mean Turkey is vying with other countries to become a top aviation training hub in addition to offering other aviation-related businesses. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220930005023/en/ Turkey is calling Europe for flight trainings (Photo: Business Wire) Alfa Aviation Services Chairman of the Board Mehmet Fatih Pakır, at his recent visit to France engaged in bilateral meetings with industry peers, commenting, “We are planning to cooperate with the European civil aviation aut
Enlighted Ushers in New Era of Smart Building IoT Data and Space Intelligence30.9.2022 10:01:00 EEST | Press release
Today Enlighted, a leading proptech company, released a curated portfolio of smart IoT building solutions to create customer value and further enable sustainable enterprises across industries and geographies. According to analyst firm Verdantix1, 75% of firms will use IoT data for space utilization monitoring. The solutions announced today, part of Siemens' open business platform Xcelerator, elevate the use of IoT building data to a new level of functionality for leaders seeking to improve productivity of their operations and to reach carbon neutrality. “We anticipate our new solutions and alignment with Siemens Xcelerator business platform will enable our customers to leverage their building’s IoT and activity data to vastly improve processes and decisions around the interactions of people and their spaces,” said Stefan Schwab, CEO, Enlighted. “Additionally, we will help them further transform their real estate portfolios with a focus on long-term sustainability to meet ESG goals. ” S
L&T Technology Services Joins Hands with Qualcomm to Provide Solutions for the Global 5G Private Network Industry30.9.2022 10:00:00 EEST | Press release
L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a leading global pure-play engineering services company, today announced that it is collaborating with Qualcomm Technologies, Inc. to deploy end-to-end solutions for the global 5G Private Network Industry utilizing their combined core expertise in the Hi-Tech & Telecommunication domain. LTTS and Qualcomm Technologies will bring together core competencies in telecommunication solutions and services for the benefit of end-customers in the manufacturing and warehousing/logistics sector. As the demand for a connected world continues to grow rapidly, LTTS engineers are leveraging LTTS’ chip-to-cloud expertise to unleash the power of 5G and transform global manufacturing and supply chain processes. Qualcomm Technologies, an industry leader in 5G globally, is accelerating the expansion of 5G connectivity, and its end-to-end domain expertise is enabling the growth of the broader technology ecosystem spanning 5G Private Network RAN, devi
TRAWELL CO S.P.A. Confirms That Consumer Spending Is Strong in Airports Worldwide30.9.2022 09:05:00 EEST | Press release
The Board of Directors of TraWell Co S.p.A. (Euronext Growth Italia, ticker: TWL), which met yesterday afternoon, approved the consolidated half-yearly financial report as of 30 June 2022, which shows that passengers’ spending in airports is very strong. The group registered the following results for H1 2022: REVENUES of € 10.9 million, an increase of € 3.7 million (+ 52%); EBITDA equal to + € 2.0 million, up by € 2.2 million; NET PROFIT equal to + € 2.0 million, an increase of € 2.6 million. The revenues of 10.9 million euros (+ 52%) show a strong improvement of the spending environment compared to 2021. The analysis of Group’s revenues by geographical area confirms an ideal international diversification in H1 2022, with America as the first market of the Group with approximately 50% of revenues , Europe with 28% as the second market and Asia with approximately 22% of revenues. Rudolph Gentile, President and CEO of the TraWell Group: "Demand is high, and the industry is rebounding as
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom