The Fortune 500 boardroom sets a record-setting high with more and more woman rising to power and entering the fortune crew.
Out of 462 board members of Fortune 500 brands 183 that happens to be 40% of the total, were a woman. This accounts to be the double the rate from a decade ago and has been the highest ever recorded Growing at this speed it is expected by 2023 this number would be at an equal tally.
Boards are starting to diversify and also are being held accountable for the move by some foreign influence, for instance, a new Californian law that mandates there be female directors at public companies. The sense of urgency may also have increased due to the growing #MeToo movement. Miles to go for Woman and Minorities Despite the progress made among new appointees, women still only represent 22.5% of all Fortune 500 board directors. That’s up from roughly 16% in 2010, according to a separate report from the Alliance for Board Diversity and Deloitte.
Racially and ethnically diverse candidates –combined – constituted 23 of new board appointees last year, unchanged from the all-time high in 2017. And they account for a much smaller share of all Fortune 500 board directors.
The board diversity is “real but still disappointing.” Beyond their usual preference for existing CEOs, a notoriously male-dominated group, boards should consider excellent general managers and division heads, retired public servants of large government agencies and retired military officers when recruiting new members and they should look for fast-rising younger executives.
Efforts to boost gender, ethnic and racial representation on boards are gender parity – meaning the number of women and men directors is evenly split. As of March this year, only seven companies with greater diversity in the C-suite and in the boardroom perfume better financially.
The ultimate goal of those who advocate for more women on boards is gender parity – meaning the number of women and men directors is evenly split.
Won’t be a major milestone but Indra Nooyi’s appointment as the Amazon Board Member set a new parameter and height for the days to come.