Fortune 500 Boards Are Becoming Less Diverse

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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.  

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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.  

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How it’ll impact the future: 

The question is now whether the 2022 decline is going to be a long-lasting downward trend — or if it’s just a setback in a longer-term upward trend.

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