Boardroom Diversity/Inclusion Trend

Regarding Women

 

(2004) Norway is the first nation to legislate a 40% quota for women on public company boards. Nation reached 36% by 2011. Emulated by France, Spain, India and Maylasia.

 

(2009) U.S. SEC regulation includes oversight of total boardroom diversity in America’s publicly traded companies; requires these companies to develop diversity policy and add disclosure practices to their annual corporate proxy statements.

 

(2011) European Union Justice Commissioner Viviane Reding kick-started a three-month debate that could result in legislative action, a year after she called on companies to take voluntary steps to increase the number of women on boards to 30 percent by 2015 and 40 percent by 2020.

 

(2012)

With only 24 companies signing on the voluntary pledge the EU discussion has moved to considering legislating a 60% female quota requirement. Today 76% of Europeans believe women have the necessary skills. Finally, 75% of those asked favor legislation on gender balance in company boards with the relative majority of respondents (49%) saying that monetary fines would be the most appropriate mechanism to enforce such legislation.

Facebook IPO: Failure to appoint a woman on Mark Zukerberg’s board has ignited a firestorm with demonstrators trying to deliver a Petition with 53,000 signatures to the company’s New York office April 26th. Interestingly, despite the political divide, women’s groups are uniting in efforts to address Zuckerberg’s insensitivity to the fact that 58% of Facebook user customers are women. This oversight has also spawned a worldwide campaign calling for women on the Facebook board. Details: www.faceitcampaign.com

 

Corporate Boardroom Member and the NYSE Euronet is conducting a session at the NYSE in New York July 18-19 called “Moving the Needle ~ Building Effective Boards with Qualified Diverse Candidates.” Providing input on the topic will include CEOs, Board Chairpeople, Nominating Committee Chairs, Lead Directors, Search Firms and pro-diversity national organization leaders.

 

YOU HEARD IT HERE

While today’s diversity/inclusion trends in the boardroom favor women, I’m betting on a slight uptick in appointments of minority males on the boards of companies whose sitting directors average age range is 55-80.

Regardless, more appointment opportunities will come online as older white males leave the publicly traded company (corporate) boardroom for both minority males and women of all color to fill these vacant seats. Meanwhile, the private business sector is still the best bet for diverse business leaders to hone their governance skills and establish their credentials as viable director candidates of the future within the publicly traded governance arena.

 

Linda K. Bolliger

Boardroom Bound®

Boardology™ Institute

http://linkedin.com/in/lindabolliger

http://facebook.com/lkbbolliger

Twitter: @boardgov1

 

TO THE POINT! is intended to enlighten recipients about the need to use diversity and inclusion to help foster quality corporate governance leader-ship in America’s corporate advisory, private and publicly traded company boardrooms.