California’s company boardrooms continue to be ‘mostly White’, despite the fact that 39% of the state’s population is Latino.
Latin Corporate Directors Association’s (LCDA) latest California Boardroom Equity Scorecard, revealed that the majority of boards continue to lack diversity; that’s despite a new state law requiring board positions to be filled with more people from different backgrounds.
After tracking 607 new board appointments made by California public companies between 1 July to 31 December 2020, in partnership with Equilar, LCDA found that 31.2% of boards were all White.
LCDA’s results revealed that Latinos gained only 14 board seats in Quarter 4 of 2020; 74 seats went to Asian/Pacific Islander directors; and 73 went to Black/African American directors. However, the large majority of seats (434) went to White/Caucasian directors. In short, 84.6% of California public company boards continue to lack a Latino director.
NOT ENOUGH DIVERSITY PROGRESS
State Assembly member Chris Holden said he was “concerned that one-third of California’s company boards still lack diversity”. “We in the California Legislature will continue to monitor appointments of directors from underrepresented communities under the requirements of AB 979 to better reflect California’s population and the Nation,” stated Holden.
California Legislative Women’s Caucus Chair and Assembly member Cristina Garcia, said she was “pleased that more women are being appointed to California boards in greater numbers”. However, she noted that there “has not been enough progress for women of colour”. A large majority of board seats filled by women went to White/Caucasian professionals (71.5%)’ 12% to Asian/Pacific Islander; and 12% Black/African American.
“Alarmingly only 2.5% of women appointed to California boards were Latina, while we make up over 20% of the population,” Garcia pointed out. “We have many qualified Latinas and women of colour ready to serve on boards, who rise to the occasion. Plus, research tells us, it’s in the companies’ best interests to do better and be intentional in their search for diverse female candidates.”
DIVERSITY & INCLUSION COMMITMENT
Roel Campos, Former SEC Commissioner and LCDA Chair reminded Californian companies that “a commitment to diversity and inclusion is incomplete without Latinos”; who represent “two in 10 Americans and account for 25% of national GDP”. “Investors understand the business value and want corporate boards to better reflect their customers and employees. The California Boardroom Equity Scorecard & Tracker provides investors and shareholders with information on the board composition of California public corporations; identifying which companies have Latinos on their board of directors,” stated Campos.
LCDA President and CEO Esther Aguiler has confirmed that Latino Voices has written to request meetings with all California public companies that lack Latino directors. “The Latino Voices coalition serves as a resource to US public companies to connect them with ample board talent. We are encouraged by productive meetings to date and invite companies to engage with us,” she concluded.
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