Alliance For Board Diversity Launches.

Uniting under the common goal of increasing representation of women and minorities on corporate boards, three leadership organizations-Catalyst, The Executive Leadership Council, and Hispanic Association on Corporate Responsibility (HACR) announced their collaboration as the Alliance for Board Diversity and released the results of their first joint research, Women and Minorities on Fortune 100 Boards, which assesses diversity in the boardrooms of the Fortune 100 companies.

In sharing the results of this benchmark study, the Alliance for Board Diversity called attention to the business imperative for advancing inclusion on corporate boards. The report, which outlines the stark reality of today’s board membership, was compiled with assistance from The Prout Group, an executive search firm. Key findings include the following:

* There is a severe under-representation of women on boards. Just 16.7% of board seats in the Fortune 100 are held by women.

* Racial and ethnic minorities are similarly under-represented. Only 14.9% of board seats are held by a minority individual. Minority women fare worst of all, holding just 3% of board seats in the Fortune 100.

* Particularly low is representation of Hispanics, who hold 3.9% of board seats, and Asian-Americans, who hold just 1% of board seats.

* There is a recycling of the same minority individuals–especially African-American men-on multiple boards. African-Americans hold an average 1.50 seats per person, as compared to Hispanics who hold an
average 1.24 seats per person, white men who hold an average of 1.17 seats, white women who hold an average 1.16 seats, and Asian-Americans who hold an average of 1.09 seats per person.

* Very few Fortune 100 boards have representation from all groups, and in more than 60% of the boards surveyed, less than one-third of the seats are held by women or minorities.

Focusing on the strategic urgency for greater inclusion in corporate governance, the founding partners of the Alliance discussed how shareholder interests are best served when women and minorities are included on boards.

“Good governance acknowledges the interests of all stakeholders, including shareholders, employees, customers, suppliers, and communities that businesses and organizations serve,” said Alfonso E. Martinez, president and CEO of the Hispanic Association on Corporate Responsibility. “Having a diverse board sends a clear message to each of these groups.”

This marks a groundbreaking collaboration for the three organizations, all well-respected for their individual work in advancing workplace diversity and the business case for inclusive leadership in corporate America. “To remain competitive globally, the United States must recognize and embrace the power of inclusive leadership. We want to help companies make the case that diversity is as essential in the boardroom as it is in the executive suite,” said Carl Brooks, president of The Executive Leadership Council, an organization representing the most senior African-American corporate executives in Fortune 500 companies.

Most notably, Alliance for Board Diversity members are committed to providing referrals to companies seeking qualified executive women and minorities to serve on corporate boards. “Through our Alliance and our research, our individual organizations will better serve companies, helping them to become more aware of the talented women and minorities available to serve as directors,” said Ilene H. Lang, president of Catalyst, the leading nonprofit organization working to expand opportunities for women at work.

The Alliance for Board Diversity plans to track trends in boardroom diversity by conducting research to measure changes in the demographic makeup within Fortune 100 boards. At the same time, it will identify corporations that commit to the diversification of their own boardrooms and endorse the Alliance for Board Diversity mission, collectively or individually, via “signatory” status. The National Association of Corporate Directors (NACD) is a key partner helping to advance the Alliance’s mission. The Alliance will continue to ally with and support like-minded organizations or individuals who
are highlighting the issue of boardroom diversity as a vital shareholder concern.

To view report CLICK below (Adobe Acrobat Reader required):

Fhttp://www.catalystwomen.org/pressroom/press_releases/5_11_05%20-%20ABD%20report.pdf