Non-profit Ascend has launched the 10×25 Initiative, which aims to have at least 10% of Asian American/Pacific Islander (AAPI) directors serving on Fortune 1000 boards by 2025.
Asian American and Pacific Islanders are severely underrepresented at the highest levels of corporate America, including on company boards. The number of AAPIs in the US professional workforce is approximately 12%, confirmed Ascend, the US career organisation for Pan-Asian business professionals. Out of approximately 7,500 directors serving on the boards of Fortune 1000 companies, only 330 or about 4% identify as Asian American/Pacific Islander. Ascend’s 10×25 Initiative aims to more than double the number as it works to combat the bias and misconception that AAPI executives often face.
“The world has seen over the past year that the AAPI community has increasingly become the target of hate actions and crime, which in part can be attributed to the invisibility of AAPIs in American society and the perpetuation of the Model Minority Myth,” stated Anna W Mok, President and Executive Board Chairman of Ascend. “Having AAPIs in positions of leadership will help give voice and visibility to the AAPI community, which is particularly needed now more than ever. AAPIs are invaluable contributors to the workforce and economy. We have to make sure things change and that the AAPI community is recognised for their talents; and are provided an opportunity to lead at the highest levels of businesses.”
MORE AAPI REPRESENTATION A MUST
“The relationship between a diverse leadership team and board and a company’s performance is well established. With Asian Americans and Pacific Islanders making up to 30% of a company’s workforce in some sectors, such as technology, and with AAPIs being one of the fastest growing demographics for consumer spending, it is obvious that there should be more AAPI representation on boards,” highlighted Tim Buckley, Chairman and CEO of The Vanguard Group. “This is not only a savvy business decision; but also the right thing to be doing from a diversity and inclusion standpoint.”
The 10×25 Initiative grew out of recent work by Ascend and a coalition of AAPI organisations on the California AB 979 bill; which was signed into law in September 2020; mandating that California–based public companies diversify their boards. “I was proud to help author AB 979, which will open the door to diversify corporate boards. We are so happy to see the 10×25 Initiative and similar efforts, so that Asian American/Pacific Islanders and other ethnic groups that have been so underrepresented will finally be able to have a seat at the table in corporate boardrooms,” stated California Assembly man David Chiu. Similar bills are being considered by at least a dozen states in the United States.
ADVANCING BOARD DIVERSITY
Institutional investors such as Vanguard and others have been advocating for diverse boards in their portfolio companies for many years. More recently, in December 2020, NASDAQ announced a proposal to advance board diversity through new listing requirements. Nasdaq-listed companies will be required to publicly disclose board–level diversity statistics; and expected to have two diverse directors within five years of the SEC’s approval, as reported.
With key stakeholders such as governments, stock exchanges and investors pushing for increased diversity of boards, Ascend’s 10×25 Initiative will help companies increase the diversity and talents on their boards; and raise the profile of Asian American/Pacific Islanders as leaders in the boardroom. Ascend said it will work with both private and public companies to continually identify talented and experienced individuals that are ready to assume board positions; and immediately add value. It will also expand its existing Aspiring Director development programmes to maintain and expand the skill sets and experience of these directors and director candidates; so that they continue to be relevant, and on the leading edge of issues and concerns facing businesses.
SUPPORTING PARTNERS
Partners and supporters of the 10×25 Initiative include:
- Leading executive search firms and professional advisory organisations, such as Bridge Partners; Deloitte; Equilar; Heidrick & Struggles; Korn Ferry; KPMG, Major Lindsay & Africa/Allegis Partners; Russell Reynolds and Spencer Stuart.
- Prominent AAPI community and professional organisations, such as Council of Korean Americans (CKA); National Asian Pacific American Bar Association (NAPABA); The Indus Entrepreneurs (TiE); Monte Jade, Association of Asian American Investment Managers (AAAIM).
- Community and other collaborators, such as 30% Coalition; Women Corporate Directors; Catalyst; and Minority Corporate Counsel Association (MCCA).
A recent LAAUNCH survey found that around eight out of 10 Asian Americans are discriminated against in the US. Click here to read more.
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