Business Wire

Diligent Research Reveals Massive Gaps in How Diversity is Defined and Represented on Corporate Boards Globally

Share

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.

About Diligent

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.

Contact information

Media
Julia Hanbury
Senior Communications Manager, Diligent
+1-604-669-4225
Jhanbury@diligent.com

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

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

Mercans Adds Industry Veteran Steve Goldberg to its Board4.10.2022 16:07:00 CEST | Press release

Mercans, the global payroll technology leader, has announced that Steve Goldberg has joined its board as a non-executive director. The addition of an industry veteran to Mercans’ board follows several recently announced corporate governance changes to strengthen the board and executive management team of the global payroll and EOR service provider. When announcing Steve Goldberg’s appointment, Mercans’ board said,“We welcome Steve as a non-executive director to the board and believe that his long-term industry experience and insights will bring unique perspectives to Mercans. Steve’s strategic vision for the global payroll and HCM industry aligns well with Mercans’ strategy. We are confident that his leadership will further accelerate Mercans’ growth and strengthen its ability to deliver award-winning global payroll technology.” Steve Goldberg's 30+ year career on all sides of HR and Payroll technology includes HR executive roles across 3 continents, serving as HCM product strategy lea

Announcing ClickHouse Cloud: Democratizing lightning-fast insights and analytics4.10.2022 16:00:00 CEST | Press release

Today, ClickHouse, Inc. announced the launch of ClickHouse Cloud, a lightning-fast cloud-based database that simplifies and accelerates insights and analytics for modern digital enterprises. With no infrastructure to manage, ClickHouse Cloud architecture decouples storage and compute and scales automatically to accommodate modern workloads, so users do not have to size and tune their clusters to achieve blazing-fast query speeds. Historically, data infrastructure and analytics solutions have been expensive and difficult to manage. Companies frequently bore the expense of specialized experts and infrastructure teams, only to receive unacceptable performance in return, as legacy solutions struggled to scale. The introduction of ClickHouse Cloud, built by the creators of the much-loved open source project, brings enterprise-grade data analytics and lightning-fast insights to the masses. A ClickHouse Cloud user can log in and launch a new service with a few clicks, and start analyzing thei

GlobalLogic Inaugurates Two New Engineering Centers in Mexico4.10.2022 15:00:00 CEST | Press release

GlobalLogic Inc., a Hitachi Group company and Digital Engineering leader, today announced the opening of two new engineering and sales centers in Mexico. The centers will be located at Guadalajara and Mexico City. The expansion will help GlobalLogic meet the robust demand for digital solutions, as companies across industries and around the globe continue to transform their products and digital experiences to better engage their customers, access new revenue streams, and make their offerings more sustainable. The sites expand on GlobalLogic’s existing Latin American presence, which includes engineering and sales centers in Argentina and Chile. “We have executed on a steady expansion campaign for years, identifying gaps in the market and pairing those with emerging customer hubs,” said Vishal Anand, Group Vice President & Head of Americas, GlobalLogic. “The LatAm region is a critical component of that growth strategy as our clients look to offer differentiated products and services along

Expensify Gives Accountants a Chance to Win Their Spot at ExpensiCon in Italy4.10.2022 15:00:00 CEST | Press release

Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills, today announced the “Win your spot at ExpensiCon” contest. The contest is open to any accountant, but only five accountants will win a spot at this exclusive, invite-only conference for themselves and a guest. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221004005072/en/ “We’re bringing together 100 of the industry’s best and brightest, and five of the most coveted spots in accounting are now available to any accountant from any size firm,” says David Barrett, founder and CEO of Expensify. “This is an unparalleled opportunity to join a global community of accounting leaders with hundreds of years of combined experience to plan for the next generation of the profession. Together, we can identify and solve the most complex challenges that wil

INNIO‘s next generation Jenbacher 3F engine offers significantly higher efficiency4.10.2022 14:07:00 CEST | Press release

INNIO announced today that it has launched its next generation Jenbacher Type 3F engine. This forms part of INNIO’s commitment to empower the transition to net zero with flexible, scalable, and resilient energy solutions and services. The new and improved Jenbacher Type 3F engine offers customers proven robustness and reliability while delivering up to two percentage points of efficiency boost, the engine line’s highest efficiency ever. In addition to delivering efficiency as high as 43.3% when operating on pipeline gas, the Type 3F engine is optimized for reduced total hydrocarbon (THC) emissions, future-proofed fuel flexibility, and enhanced serviceability. Moreover, the latest 3F technology is offered with a “Ready for H2” option and retrofittable for most of the installed Type 3 fleet. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221004005681/en/ INNIO's next generation Jenbacher Type 3F engine has the line's highest e