Spencer Stuart’s “2024 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, 2023, and April 30, 2024.
Notable takeaways include:
New director class
- The number of new directors and the percentage of companies appointing new directors rose to 406 new directors and 58% of companies appointing at least one new director in 2024 from 388 new directors and 53% of companies appointing at least one new director in 2023.
- For the third year in a row, the most common industry background among new directors is technology/communications (19%), followed by industrials (14% of appointments), consumer goods and services (13%), and financial services (11%).
- First-time directors, who make up more than one-third of new directors (34%), most commonly have a financial background and are still actively employed.
- Diverse directors (women, underrepresented minorities, LGBTQ+) were represented by 58% of the incoming (newly appointed) S&P 500 class, down from 67% 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 26% of the incoming S&P 500 directors (down from 36% last year) and represent 24% of all S&P 500 directors. Notably, as was the case last year, 10% of boards increased their size to add at least one self-identified underrepresented minority.
- Women represented 42% of the incoming S&P 500 directors (down from 46% last year) and represent 34% of all S&P 500 directors. Ten percent of women on S&P 500 boards self-identify as historically underrepresented minorities.
- Board leadership diversity lags board diversity overall by a significant margin, with just 7% of S&P 500 independent chairs and 11% of lead directors from underrepresented minority groups; however, board committee chair roles continue to show greater representation among underrepresented minorities and women:
Also noteworthy: The percentage of boards disclosing the existence of a Rooney Rule-like policy to include diverse candidates in their new director recruitment pools increased from 56% last year to 58% this year, up from 50% in 2022.