https://board.international/how-data-room-providers-are-shaping-the-business-landscape/
Corporate Board Diversity
Companies understand that diverse boards enhance decision-making and increase stakeholder engagement and help create more innovative environments. But many still struggle to ensure that diversity is a reality in their boardrooms. A confluence of forces has been pushing boards towards greater diversity. This includes protests and activism by women and people of color, like the Black Lives Matter movement; pressure from shareholders and other market players; and state legislation.
However, despite these improvements, the composition of boards is still not up to par with the overall population of the United States. According to a recent Spencer Stuart study, white people hold 84 percent of Fortune 500 board seats. Moreover, the number of ethnic minorities and women on the board hasn’t increased substantially over the past five years.
Some institutions are now increasing the pressure they apply to boards to adopt policies that promote diversity. For example, CalPERS, the $330 billion pension fund for California public employees, has sent letters to 504 businesses in the Russell 3000 index with low levels of gender diversity on their boards.
To increase diversity on the boardroom, companies should expand their search beyond the traditional network of executive peers. They should also engage consultants to find new candidates. They must also eliminate selection criteria and processes which have impeded diversity on the board and adopt new best practices. They should also think about developing formal onboarding programs to enable diverse directors to become familiar with the board’s processes and culture.
