Board Mix: "We Still Have a Long Way to Go"
from May/June 2008
by Steve Rosenbush
White men maintained their domination of Fortune 100 boardrooms in 2006, with 872 of 1,219 seats, about the same mix as the previous year. But a study of board composition at those companies shows something of a struggle for second place among the remaining 30% of directors.
While white women continued to hold more board seats than minority women or minority men, they’ve been losing share, according to a report by the Alliance for Board Diversity, an umbrella group of organizations that advocate for more minority and female executives and directors. The report found that white women accounted for 159 board seats in 2006, seven fewer than in 2004. Minority men lost three of their 142 seats over the same period.
Who’s gaining ground? Minority women. In 2006, African American women had five more seats than they did in 2004, bringing their total to 32. The number of Hispanic women on boards doubled over the same period, to 12. Asian American women gained two seats, raising their total to five.
Still, says the Alliance for Board Diversity, continuing dominance of boards by directors who are both white and male suggests that board composition has failed to keep up with the shift toward more diverse global markets, shareholders, and workforces. Adds Carl Brooks, president and CEO of the Executive Leadership Council, an alliance member that advocates for more African Americans on boards: “I was surprised by the results.” He had expected the passage of Sarbanes-Oxley to boost board turnover and create more opportunities for women and minorities. Carlos F. Orta, president and CEO of the Hispanic Association on Corporate Responsibility, another member of the alliance, expresses similar disappointment. “We still have a long way to go,” he says.
Prout Group Inc., an executive search firm that specializes in finding minority candidates for board and executive positions, conducted the study.
