Latinos still missing from California’s boardrooms

Latinos remain the ‘most underrepresented’ community across Californian boardrooms representing just 2.3% of board seats, despite making up 39.4% of the state’s population. 

The latest California Boardroom Equity Scorecard (Q1, 2021) from the Latino Corporate Directors Association and Latino Voices for Boardroom Equity, reveals that no progress has been made regarding the lack of Latino representation on California’s boards since the previous quarter. There was, however, a slight increase for Asian directors from 10% to 10.9% and Black directors 3.5% to 4%.

“Our research raises concern about the 83% of California public companies that lack the Latino perspective on their board,” stated Esther Aguilera, LCDA President and CEO. The figures are hugely disappointing particularly, given that Latinos represent “two in 10 Americans and account for 25% of national GDP”, highlighted Aguilera.

CALIFORNIAN BOARDS STILL MOSTLY WHITE

In partnership with Equilar, LCDA tracked 951 new board appointments made by California public companies between 1 July 2020 until 31 March 2021. The start date of July 2020 coincides with the introduction of California’s AB 979 mandate, which became law on 30 September 2020.  LCDA’s latest tracking results reveal that California’s boards continue to be mostly White.

White directors continue to receive the largest number of new board appointments, as follows:

• White directors gained the most seats (649), followed by Asian (148), Black (102), and Latino (29) directors. 
• Men (60.3%) continue to surpass females (39.7%) in new board appointments. 
• White females gained the most board seats (240), while Asian women accounted for 64, Black females 53 and Latinas just 17.

At the end of Q1 2021, female directors accounted for 26.8% of California public company directorships. Although gender diversity has seen an improvement on California’s boards since the SB 826 legislation was enacted in 2018, women of colour remain largely absent.

DISAPPOINTING PROGRESS FOR WOMEN OF COLOUR 

White female directors held the most board seats in California at 20.2%, followed by Asian females holding just 3.3% seats. However, Black women only account for 2% of directorships and Latinas just a meagre 1% of board appointments in the state. In fact, 56% of California public company boardrooms continue to lack a woman of colour on the board, despite AB 979 legislation mandating the inclusion of underrepresented communities on boards.

“Women drive consumption, and all corporations would benefit from having women of colour in the boardroom,” highlighted California Legislative Women’s Caucus Chair and Assemblymember Cristina Garcia. “Latinas are a fast-growing segment of California and the US population, but hold the least amount of board seats. Corporations need to represent their customers and employees in the boardroom; it’s not just the right thing to do, but good for their bottom line.”

LCDA and the Latino Voices for Boardroom Equity initiative advocate for greater representation of Latinos on corporate boards. The Latino Voices initiative serves as a resource to US public companies with the goal of connecting them with Latino talent. The quarterly Scorecard provides transparency regarding the gender, ethnic and racial composition of California boards, so that investors, shareholders and stakeholders, including consumers and employees, can make informed decisions about the companies they do business with and invest in.