New Data From Deloitte and the Alliance for Board Diversity (ABD) Reveals Continued Focus is Necessary for Fortune 500 Boards to be More Representative of the US Population

The latest "Missing Pieces" report, now in its seventh edition, shows that nearly 45% of women and underrepresented racial and ethnic groups held board seats in 2022, up from 38% in 2020

Still, the pace of change remains inconsistent and uneven across demographics

NEW YORK and WASHINGTON, June 15, 2023 /PRNewswire/ — More than ever before, the corporate directors of America’s largest and most prominent public companies are likely to reflect an array of gender, racial and ethnic diversity. But while the boardroom is starting to reflect a broader range of lived experiences, the rate of change has room for improvement. Today, in collaboration with Deloitte, the Alliance for Board Diversity (ABD) released the seventh edition of "Missing Pieces." This comprehensive biennial report examines and chronicles the representation of women and individuals from underrepresented racial and ethnic groups on the boards of Fortune 500 companies. The report’s latest edition analyzed data from 2020 – 2022 and highlights 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. These insights highlight the progress and serve to inform and highlight the need for a more diverse board composition.

Women and underrepresented racial and ethnic groups make gradual strides in the boardroom
The findings from this year’s report show that although more than half of Fortune 500 board seats are still held by White men (55.3%), women and individuals from underrepresented racial and ethnic groups have recorded gradual increases. In 2022, women held more than 30% of Fortune 500 board seats, up from 26.5% in 2020. African American/Black women saw a 47% increase, gaining 86 board seats since 2020. Asian/Pacific Islander women gained 24 seats and saw an increase of 27%. Hispanic women/Latinas saw an increase of 23.7%, totaling 14 seats.

Underrepresented racial and ethnic groups continued to make strides in the boardroom as well, increasing the number of board seats in the Fortune 500 from 17.5% in 2020 to 22.2% in 2022. In particular, the percentage of African American/Black board members grew from 8.7% to 11.9%; Asian/Pacific Islander board members grew from 4.6% to 5.4%; and Hispanic/Latino(a) board members grew slightly from 4.1% to 4.7%. Even though all groups have seen growth in board representation over the last decade, no Fortune 500 company board fully represents the demographic population in the United States.

The Fortune 100 slightly leads the Fortune 500 in representation
The report also reveals trends specific to Fortune 100 companies. Looking at data changes between 2020 and 2022, the levels of diverse representation are slightly higher in the Fortune 100 than in the broader Fortune 500, with 46.5% of board seats held by individuals who are women and/or from underrepresented racial and ethnic groups (versus 44.7% in the Fortune 500). While representation is greater in the Fortune 100, the rate of change is, however, much slower. For example, over the last decade, the share of women and individuals from underrepresented racial and ethnic groups on boards increased by only 44.9% for the Fortune 100 compared to 67% for the Fortune 500.

Additional report findings

More than half of the Fortune 500 boards now have 40% of their seats held by White women and individuals from underrepresented racial and ethnic groups. Between 2020 and 2022, an additional 81 companies moved into this group, for a total of 281 companies. Currently, just four companies have boards where less than 10% of directors are White women and/or individuals from underrepresented racial and ethnic groups.
Across industries, gender diversity on boards was highest for consumer businesses (32%). In terms of racial and ethnic diversity, life sciences and health care leads in representation (25%).
The power and utilities sector has the highest percentage of African American/Black directors; the technology sector has the highest rate of Asian/Pacific Islander directors; and the energy and chemicals sector had the highest percentage representation of Hispanic/Latino(a) board members.
For the Fortune 100, women from underrepresented racial and ethnic groups saw significant increases, gaining board seats. 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.
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.
When compared to the current estimates of the U.S. census populations, only 16 companies have boards with 50% or more women. Only 13 companies have 18% or greater Hispanic/Latino(a) representation. Two hundred and four companies have 13% or greater representation of African American/Black board members. Two hundred and eleven companies have 6% or greater Asian/Pacific Islander representation.

Key quotations
"The findings from this year’s report show gradual steps in the right direction, but at this pace, U.S. top corporate boards might not represent the nation’s population until 2060. Board diversity and inclusion isn’t only the right thing to do; it is a business imperative that builds broad stakeholder trust that ultimately can lead to better business outcomes."
— Carey Oven, national managing partner, Center for Board Effectiveness, Deloitte LLP

"Hispanic/Latino(a) board representation has remained relatively flat since 2004. By 2060, the Hispanic population will be almost 30% of the nation’s population, yet fewer than 5% of corporate board positions are held by Hispanics, which makes us the community with the largest disparity of board representation compared to our population and economic influence. This lack of representation is a missed opportunity for companies to drive greater innovation and business growth for an influential global economic force as we are the fifth largest economy in the world. The Hispanic Association on Corporate Responsibility (HACR) will continue to urge companies to make greater progress on Hispanic board representation and Hispanic inclusion overall in Corporate America."
— Cid Wilson, chair, Alliance for Board Diversity and president and CEO, HACR

"Boards are taking on a more active role in helping organizations navigate uncertainty and shifts in the economy and the global workforce. Increased digitization, new and emerging roles, shifting demographics, and high CEO turnover has put more demand on governance across industries and sectors. Diversified Search Group recognizes the significant opportunity to influence board diversity and inclusive leadership for better preparedness, decision-making, and performance now and in the future."
— Aileen K. Alexander, CEO, Diversified Search Group

"Over the past few years, we’ve seen increased pressure on corporate boards to create a boardroom that is reflective of the gender, racial and ethnic diversity that exists in society more broadly. While we’re pleased to see growth, we are also reminded of the importance of creating a welcoming environment for these diverse voices to be heard and received. This report is a reminder of the change we can create when we collectively commit to equity and ensuring all individuals — regardless of race, ethnicity, or gender — have a seat at the table."
— Kwasi Mitchell, chief purpose and DEI officer, Deloitte US

"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."
— Linda Akutagawa, president and CEO, LEAP (Leadership Education for Asian Pacifics)

"Women continue to lead the growth of board diversity, and this was a banner year for that momentum. Still, while crossing the critical mass threshold of 30% women on corporate boards is meaningful progress, we have a way to go until boards truly represent the population and the people they serve."
— Lorraine Hariton, president and CEO, Catalyst

"The Executive Leadership Council is encouraged by the significant increase in board seats held by African American/Black members from 2020 to 2022. The national focus on social and racial justice in 2020 likely played an important role in this growth, but now we must continue to hold onto this progress. The threat of company restructurings and layoffs is impacting corporate diversity efforts, so we must remind companies about the importance and business case for DE&I, especially regarding boards."
— Michael C. Hyter, president and CEO, The Executive Leadership Council

The Alliance for Board Diversity’s leadership participation in this press release is solely for educational purposes based on their individual knowledge of the subject, and the views expressed by them are solely their own.

To read the full "Missing Pieces" report, please visit https://www.deloitte.com/missingpieces.

Research Methodology
The "Missing Pieces," seventh edition report uses a census methodology and is based on companies listed on Fortune 500 for 2022. The Fortune 500 list is updated annually and ranks companies based on total revenue. The report counts and provides a measurement for the representation of racially and ethnically underrepresented groups and women on the boards of Fortune 100 and 500 companies. Our analyses allow for comparable statistics that aren’t based on a discrete list of identical companies from year to year but on the Fortune-listed companies in the given years for which the census was conducted given that the companies on the list change over time.

Due to gaps in data availability, the analysis covers 92% of the Fortune 100 (n = 92) and 95.4% of the Fortune 500 (n = 477).

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 7,000 private companies. Our people come together for the greater good and work across the industry sectors that drive and shape today’s marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Building on more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 people worldwide connect for impact at www.deloitte.com.

Deloitte’s Center for Board Effectiveness helps directors deliver value to the organizations they serve through a portfolio of high-quality, innovative experiences throughout their tenure as board members. Whether an individual is aspiring to board participation or has extensive board experience, the Center’s programs enable them to contribute effectively and provide focus in the areas of governance and audit, strategy, risk, innovation, compensation, and succession. To learn more, please click here.

About the Alliance for Board Diversity
Founded in 2004, the Alliance for Board Diversity (ABD) is a collaboration of four leadership organizations: Catalyst, 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 an adviser and facilitator. The ABD’s mission is to enhance shareholder value in Fortune 500 companies by promoting the inclusion of women and minorities on corporate boards.

About Catalyst
Catalyst is a global nonprofit supported by many of the world’s most powerful CEOs and leading companies to help build workplaces that work for women. Founded in 1962, Catalyst drives change with preeminent thought leadership, actionable solutions and a galvanized community of multinational corporations to accelerate and advance women into leadership — because progress for women is progress for everyone. For more information, please visit https://www.catalyst.org.

About Diversified Search Group
Purpose. Progress. Performance. Diversified Search Group is the largest woman-founded and woman-led executive search firm in the U.S., and for nearly five decades, has been driven by purpose, progress, and performance. Consistently recognized by Forbes as one of the nation’s top retained executive search firms, Diversified Search Group is an industry leader in recruiting diverse, inclusive, and transformational leadership for clients. The firm is deliberately different in its approach and is comprised of a combination of specialty practices with deep industry expertise, that together harness their collective resources to identify new leaders to meet the needs of our changing world: Diversified Search, Alta Associates, BioQuest, Koya Partners, Grant Cooper, Storbeck Search, and Yardstick Management.

Headquartered in Philadelphia, Pennsylvania, Diversified Search Group operates in over a dozen offices nationwide and offers global services as the exclusive U.S. partner of AltoPartners, the international alliance of independent executive search firms. For more information, visit diversifiedsearchgroup.com.

About The Executive Leadership Council
The Executive Leadership Council, an independent non-profit 501(c)(3) corporation founded in 1986, is the preeminent membership organization committed to increasing the number of global Black executives in C-Suites, on corporate boards, and in global enterprises. Comprising more than 800 current and former Black CEOs, senior executives, and board directors at Fortune 1000 and Global 500 companies, and entrepreneurs at top-tier firms, its members work to build an inclusive business leadership pipeline that empowers global Black leaders to make impactful contributions to the marketplace and the global communities they serve. For more information, please visit www.elcinfo.com.

About HACR
Founded in 1986, the Hispanic Association on Corporate Responsibility (HACR) is the nation’s leading corporate advocacy organization representing 14 national Hispanic organizations in the United States and Puerto Rico. Its mission is to advance the inclusion of Hispanics in Corporate America in the areas of Employment, Procurement, Philanthropy, and Governance. Through HACR’s corporate leadership advancement programs, Symposium best-practice conferences, research initiatives, and public communications, HACR is illuminating The Power of Hispanic Inclusion™ throughout Corporate America. For more information, please visit hacr.org

About LEAP
Founded in 1982, LEAP (Leadership Education for Asian Pacifics) is a national, nonprofit organization, with a mission to achieve full participation and equality for Asian and Pacific Islanders (APIs) through leadership, empowerment, and policy. LEAP is the only Asian and Pacific Islander organization dedicated to cultivating a robust pipeline of leaders by encouraging individuals to assume leadership positions at work and in the community, and ultimately, to become role models for future leaders. LEAP is also a founding partner of Alliance for Board Diversity (ABD). For more information, please visit leap.org.

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