Fortune 500 Boards Are Becoming Less Diverse

In the last few years, Fortune 500 companies made strides to diversify their boardrooms. But the most recent report from Heidrick & Struggles indicated that minority representation had decreased to 34% in 2022, down from the previous year's 41%. This raises the question: is this dip in diversity a long-term issue or merely a momentary regression in an overall progressive trajectory?

What’s going on:

Over the past few years, there was an increase in diversity in Fortune 500 company boardrooms, according to a LinkedIn article.

However, a new report from Heidrick & Struggles has revealed that in 2022, only 34% of board positions were held by racial or ethnic minorities, which is a decrease from the 41% of 2021.

Why it matters:

The plunge in Black appointees, from 26% to 17%, is primarily responsible for this drop — which is likely due to the economic uncertainty driving companies to recruit CEOs and CFOs for these positions, which tend to be from a less diverse talent pool.

As companies lose diversity-focused roles due to attrition, the percentage of board seats filled by women has also declined to 40% in 2022, down from the record-breaking 45% in 2021.