ISS's review as of May 30, 2019 of 19,791 directorships at 2,175 Russell 3000 companies reveals these and other noteworthy board diversity findings:
- Board refreshment continues to rise - The percentage of companies with at least one new board member increased from 34.3% in 2018 to 35.6% this year.
- The percentage of women and ethnically diverse directors joining boards reached record highs - with women comprising 45% of new Russell 3000 board seats in 2019 (compared to 34% last year and 12% in 2008), and ethnic minorities comprising 13.3% of the Russell 3000 and more than 20% of the S&P 500 new director classes this year.
- Looking at board seats overall (not just new directors), women hold 19% of Russell 3000 seats and 27% of S&P 500 seats. Ethnically diverse directors hold approximately 10% of Russell 3000 seats.
- Company disclosures are revealing observable changes in director skill sets, as shown here:
Also notable are the trends toward a higher average director age and fewer new younger directors, which ISS surmises stems from the emphasis on director experience and qualifications.
See also the WSJ Risk & Compliance Journal "Board Practices Report: Diversity Is on the Upswing," and additional information & resources on our Board Diversity page. This post first appeared in the weekly Society Alert!