The number of ethnic minorities and women appointed to S&P 500 corporate boards has dropped to its lowest level in more than a decade. This data comes from new research by executive search firm Spencer Stuart, with Reuters interviews delving into the topic further.
This comes after President Trump revoked a six-decade-old executive order that prohibited workplace discrimination by federal contractors.
Low level of ethnic minorities and women in S&P 500
Research from Spencer Stuart found that only 40% of the 364 new independent directors selected for S&P 500 boards during the year ending April 30 were women or ethnic minorities. These are the lowest figures since 2014, when women and people of colour accounted for 39% of new appointments, a stark decline from 72% in 2021 and 2022.
Diversity on boards overall is at a record high, with women and ethnic minorities holding 49.3% of S&P 500 board seats, only slightly lower than the 49.6% reached in 2024 and 2025. However, recruiters believe those numbers point to changes made in recent years due to the #MeToo and Black Lives Matter movements.
In 2022, Black or African American directors held approximately 11% of all S&P 500 board seats, according to Spencer Stuart. There are currently no Black women on the S&P, after the departure of its CEO, Rosalind Brewer, in 2023. Brewer was the sole remaining Black female CEO of an S&P 500 company; the last Black woman to lead an S&P 500 company was Ursula Burns, who left Xerox in 2016.
Companies scaling back on DEI efforts
As the Trump administration has targeted companies promoting DEI initiatives, several companies have scaled back their DEI efforts. Additionally, we’re seeing more proposals from shareholders voicing grievances about DEI initiatives.
Anti-DEI shareholder proposals increased from 15 in 2023 to 30 in 2024. An analysis published in the Harvard Law School Forum on Corporate Governance found that previously, these proposals received limited acknowledgement from the broader investor community.
But conservative-backed solutions aiming for diversity programs received an average of just 1.5% of the vote during this year’s proxy season, according to The Independent.
Image: Reuters
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