By Claire Moraa
- Women of color are steadily making their mark in boardrooms and now hold 5% of private board seats
- Collectively, women’s representation on boards has increased from 7% to 17% in the last five years
According to recent data, women of color now hold 5% of private board seats, which is an increase from 3% in 2020. Additionally, the number of boards that lack women representation also fell significantly by almost half from 60% to 32%. This indicates a positive trend towards increased representation and diversity in private boardrooms.
Why This Matters: The increase in board seats for women of color indicates a positive trend towards increased representation and diversity in private boardrooms. Having diverse board members, including women of color, brings a wider range of experiences, perspectives, and expertise to decision-making processes. This diversity can lead to more innovative and effective strategies and solutions. While this represents progress, it also highlights the continued underrepresentation of women of color in corporate boardrooms. For a long time, board diversity has been pushed for public companies as the private sector took a back seat. Without a lot of noise surrounding this issue, it became a largely male-dominated field.
However, over the past few years, male-dominated boards have declined to 32% from 60%. This decline in the prevalence of all-male boards is a testament to the collective efforts to promote gender diversity in corporate leadership, and it is a step towards creating more equitable and inclusive environments in the business. But what’s the reason behind this 360-degree change? First, companies are more willing to embrace diversity. Just like in public companies, private companies can benefit from diverse perspectives and experiences in their boardrooms. Having a diverse set of voices and backgrounds can lead to more informed and well-rounded decision-making processes, which can ultimately contribute to the company’s success. It is also becoming a regulatory requirement in some jurisdictions to have gender parity in boardrooms and meet a diversity quota. Embracing diversity from an early stage ensures that private companies are prepared to meet any future regulatory requirements.
Situational Awareness: In any setting, diversity and inclusion especially in leadership positions continues to promote different perspectives and aids in the decision-making process. The increase is a great start but the trajectory needs to go up and faster. More inclusive environments where women of color can thrive and contribute their talents and perspectives to corporate leadership are needed. When this is achieved, the society at large can fully reap the benefits of diversity and inclusion.
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