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Spencer Stuart’s “2023 S&P 500 New Director and Diversity Snapshot” reveals numerous noteworthy statistics on the profile of new directors and the representation of diverse directors on S&P 500 boards based on proxy statements filed between May 1, 2022, and April 30, 2023.

Notable takeaways include:

New director class

• The number of new directors and the percentage of companies appointing new directors declined from 395 new directors and 55% of companies appointing at least one new director in 2022, to 388 new directors and 53% of companies appointing at least one new director in 2023.
• The most common industry background among new directors is technology/communications (18%), followed by consumer goods and services (14%).

Also noteworthy: More than two-thirds of companies disclosed board matrices.

Diversity

• Diverse directors (women, underrepresented minorities, LGBTQ+) were represented by 67% of the incoming (newly appointed) S&P 500 class, down from 72% last year.
• Underrepresented racial/ethnic minorities (Black or African American, Asian, Hispanic or Latinx, Native American or Alaska Native, Native Hawaiian or Pacific Islander, or multiracial) were represented by 36% of the incoming S&P 500 directors (down from 46% last year) and represent 24% of all S&P 500 directors. Notably, 10% of boards increased their size to add at least one self-identified underrepresented minority.
• Women represented 46% of the incoming S&P 500 directors (on par with last year) and represent 33% of all S&P 500 directors. Nine percent of women on S&P 500 boards self-identify as historically underrepresented minorities.
• Based on the 25% of companies that include LGBTQ+ disclosure in their proxy statements, 4% of directors (i.e., on a base of 124 boards) self-identify as LGBTQ+.
• Board leadership diversity lags board diversity overall by a significant margin, with just 8% of S&P 500 independent chairs and 12% of lead directors from underrepresented minorities; however, board committee chair roles show greater representation among underrepresented minorities and women:

Also noteworthy: A majority of S&P 500 boards (56%)—compared to 50% last year and 39% the year before—reported having a Rooney Rule-like policy in place to include diverse candidates in their new director recruitment pools.

These recent reports are also on point: “What's on the Nom/Gov Committee Agenda?” and “Sitting Director Pool is Aging.”

See “US boardroom diversity gains slow as S&P 500 seeks resumes from finance” ( Reuters); “Black Directors Lose Ground in Boardrooms, Reversing Progress” (Bloomberg Law); and additional resources on our Board Composition and Board Diversity pages.

                                   This post first appeared in the weekly Society Alert!