50/50 Women on Boards (50/50WOB) has announced that women now hold 27.3% of the Russell 3000 company board seats; as of 31st March 2022. However, it’s vital that companies don’t rest on their laurels and “take their foot off the pedal”, in light of recent events in states like California, threatening progress, warns the non-profit.
This year’s figure represents a year-over-year increase of 2.9% from 2021. Additionally, 42% of the 667 directors who joined boards in Q1 2022 were women; demonstrating a decrease from 48% in Q3 and Q4 of 2021, but slightly higher than 41% in Q1 2021. Using the data provided by Equilar, the data also showed that only 9% (265) of companies have gender-balanced boards; while 42% (1,217) have more than three women on boards; and 49% (1,394) have two or fewer women on boards.
Around 86% of the seats gained by women directors were added to a board rather than waiting for a man to retire. Additionally, 26% of directors reported their race and ethnicity; up from 21% in Q4 2021, with 5% identifying as Asian/Pacific Islander, 7% as Black/African American, 3% as Hispanic/Latino and 1% as Indigenous People, Middle Eastern/North African, Multiracial, or Other.
MORE WOMEN ON BOARDS
Of the 25 US states with over 20 companies, 21 have greater than 25% women on the boards; up from 17 states in Q4 2021. The states that newly exceeded 25% are Colorado, Maryland, Tennessee, and Texas. California with 32.5% and Washington state with 30.5% are the two states with over 30% women. Additionally, sectors that exceeded the national average of women include utilities (31.9%), consumer defensive (30.7%), consumer cyclical (30.3%), and real estate and technology (28%).
In Q1 2022 in California, women only gained 25 seats, a dramatic difference from 100 or more seats gained between Q3 and Q4 2021, when companies had a deadline to meet to comply with SB 826. With SB 826 and AB 979 deemed unconstitutional in May 2022, the slower pace could reflect companies taking their foot off the pedal.
“The recent ruling that SB 826 is unconstitutional, only reinforces the critical need for 50/50 Women on Boards to continue our mission to educate women on how to obtain board seats and collaborate with corporations to drive the business imperative of gender-balanced and diverse boards,” stated Betsy Berkhemer-Credaire, CEO of 50/50 Women on Boards. “The LA County judge’s decision to overturn SB 826 is in process of being appealed by the State of CA, and we are confident it will be reinstated by higher courts.”
Click here to read the full report.
Companies with women CEOs have significantly more women in leadership roles and on the board, confirmed a new global study. Click here to read more.
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