The report was conducted by Heidrick & Struggles, which tracks and analyzes data and trends from non-executive director appointments across Fortune 500 companies. In 2020, 425 new board directors were added to companies, with a sharp rise in appointments of Black directors but also a slight decrease in appointments of women and Latinx people. The share of Latinx directors decreased a percentage point, and the share of women decreased by three.
Three-quarters of the Black directors were appointed after the murder of George Floyd on May 25, 2020, suggesting the boards were responding to the cultural movement sparked by his death. However, the report advised boards not to trade one form of diversity for another.
“These smaller shifts among various aspects of diversity suggest that, at least on the margins, some boards are making trade-offs among diverse candidates based on where society is focusing in terms of diversity, rather than strategically considering what types of diversity will add the most value to the board over time,” the report said.
It quoted a longtime director saying, “There’s enough room in that room for all of us.”
