Alliance for Board Diversity Report

LEAP is proud to announce the release of the

Missing Pieces Report: The Board Diversity Census of Women and Minorities on Fortune 500 Boards, 7th edition

Alliance for Board Diversity (ABD) released the seventh edition of “Missing Pieces” which is the latest edition of the comprehensive biennial report that examines and chronicles the representation of women and individuals from underrepresented racial and ethnic groups on the boards of Fortune 500 companies. One of the key findings is that while there is continuous progress in the percentage of API representation, the dataset reveals uneven growth in the boardrooms and it will take until 2040 for API to achieve parity on the Fortune 500 boards.

“Despite the increased focus on board diversity in recent years, it is concerning to see that less than half of the Fortune 500 boards have 6% or greater representation of Asian and Pacific Islanders (APIs). The underrepresentation of APIs on Fortune 500 boards is an issue of equity and innovation. Corporate America should make it a priority to fill open board seats with qualified and diverse individuals, to benefit not only underrepresented communities but also ensure the sustainability of all businesses,” noted Linda Akutagawa, president and CEO, LEAP (Leadership Education for Asian Pacifics).

The report’s analyzed data from 2020 – 2022 highlight trends around some aspects of board diversity across Fortune-ranked companies, the disparities between these boards and the U.S. demographic population and variations in boardroom diversity across industries. 

The context and tone of 2020 may reverberate for many years. Adjusting for population, the incidence of fatal political shootings is higher for both African American/Black and Hispanic/Latina(a) populations. These rates are much higher than the fatality rate in the White population. Between 2021 and 2022, the incidence of hate crimes increased across Asian/Pacific Islander (+167.0%, from 279 to 746 notwithstanding a larger number of hate incidents go unreported*)

Amidst the global COVID-19 pandemic and a broader societal awakening to racial and social injustices, businesses have had an opportunity to reassess their practices, processes, and responsiveness to effect change at the board level. These stressors may have been a catalyst for companies, institutional investors, and legislators to reassess their standard operating procedures, make strides toward greater accountability and transparency, and assess their ability to enact change at the management and board level. Board diversity serves as a means for companies to demonstrate to stakeholders that they are actively listening and responding to the prevailing moment.

Additional key findings for the Fortune 500 include:

  • 6% or greater Asian/Pacific Islander representation

    —
    When compared to the current estimates of the  U.S. census populations, only 16 companies have boards with 50% or more women. Two hundred and eleven companies have 6% or greater Asian/Pacific Islander representation.

  • 9.5% of APIs holding multiple Fortune 500 board seats

    —
    The recycling is least acute for Asian/Pacific Islanders, with only 9.5% of APIs holding multiple Fortune 500 board seats.  

  • Asian/Pacific Islander men gained 23 seats in 2022

    —
    Asian/Pacific Islander men gained 23 seats with 12.7% increase reaching 181 seats in total within the Fortune 500 companies.

  • Asian/Pacific Islander women gained 24 board seats in 2022

    —
    Asian/Pacific Islander women gained slightly fewer seats this cycle than last (24 in 2022 versus 28 in 2020) and saw a 27.0% increase within the Fortune 500 companies.

  • The technology sector has the highest rate of Asian/Pacific Islander directors

    —
    Across industries, gender diversity on boards was highest for consumer businesses (32%), and in terms of racial and ethnic diversity, life sciences and health care leads in representation (25%).

  • Asian/Pacific Islander women saw a growth of 23.5%

    —
    For the Fortune 100, the largest percentage gain in seats between 2020 and 2022 was Hispanic/Latina board members, with 45.5% growth. African American/Black women saw a growth of 38.1%, and Asian/Pacific Islander women saw a growth of 23.5%. These are significantly larger percentage increases than the three groups saw from 2018 to 2020.  

  • Highest level to date

    —
    Fifty-three companies in the Fortune 500 now have greater than 60% of their board seats filled by women and individuals from underrepresented racial and ethnic groups, the highest level to date.

  • There are still four companies that have boards where less than 10% of directors are from underrepresented groups

    —
    Currently, there are still four companies that have boards where less than 10% of directors are White women and/or individuals from underrepresented racial and ethnic groups. 

Viewing the numbers by industry allows for a deeper conversation about where headway has been made and where there are more opportunities for diversity in the boardroom.

“While progress has been made, it is imperative that we continue to strive for greater diversity at the highest levels of leadership. Despite challenges in passing legislation to mandate diversity disclosures in some states, we must not regress to the old days of limited representation.”

“The time for action is now. Together, let’s accelerate the pace of change and create boardrooms that truly mirror the richness and diversity of our society. We can unleash the transformative power of diversity to drive innovation, foster creativity, and shape a more equitable and prosperous future.”

Linda Akutagawa,
President & CEO, LEAP

About the Alliance for Board Diversity

Founded in 2004, the Alliance for Board Diversity is a collaboration of four leadership organizations: Catalyst, the The Executive Leadership Council (ELC), the Hispanic Association on Corporate Responsibility (HACR), and LEAP (Leadership Education for Asian Pacifics). Diversified Search, an executive search firm, is a founding partner of the alliance and serves as advisor and facilitator. The ABD’s mission is to enhance shareholder value in Fortune 500 companies by promoting inclusion of women and minorities on corporate boards.

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