Jun 8, 2021 - Economy & Business
Report: Corporate boards tapping limited circle of executives of color to fill open slots
Corporate boards are getting less white and male, but companies are "recycling" to achieve the feat — i.e., tapping a limited circle of executives of color to fill open slots.
Why it matters: In some cases, more diversity came "by recycling ... existing Fortune 500 board members rather than bringing in new individuals with different skills, backgrounds, and perspectives," according to a report out Tuesday by Deloitte and the Alliance for Board Diversity.
- Roughly 36% of board seats held by people of color were occupied by executives on several boards last year. That doesn't account for involvement on boards outside the Fortune 500.
- Two out of every five Black board members belong to several boards.
- Hispanic/Latina women serve on roughly 1.3 Fortune 500 boards. Compare that to white men, who serve on an average of 1.1.
Sober stat: No Fortune 500 corporate boards are representative of U.S. demographics.