Visit this section regularly to keep up with the latest news on African-American Board news. It includes content on new appointments, the latest studies/trends and thought provoking content on why the average person should care about the lack of African-Americans serving on Fortune 500 Boards of Directors. So why is African-American Board membership important? Board Directors mission is to create shareholder value.
Boards create the policies that determine which people companies choose to hire, train, promote, and fire. They have oversight of corporate expenditures that cut across areas that impact society as a whole. They also shape corporate giving. For these reasons, we need to bring diversity…diversity of thought, leadership, global perspectives.
Amazon Diversifies Its All-White Board With Addition Of Starbucks Exec
5 Feb 2019
Amazon has appointed a black woman to its all-white board of directors after intensifying pressure to diversify the company’s leadership team.
Rosalind Brewer, Starbucks’ chief operating officer, will be the fourth woman and the only person of color on Amazon’s now ten-person board.
Previously the CEO of retail warehouse chain Sam’s Club, Brewer is the second black director to have served on Amazon’s board. Myrtle Potter, former president and COO of Genentech, was the first.
Having worked in financial communications for a number of Fortune 500 companies and being familiar with earnings reports, when I see percentage increases reported, I’m always a bit skeptical. When news stories lead with percentage growth, I have a natural tendency to ask, “From what base?”
Reading the recent, “Missing Pieces Report” trigged my instincts. In the report, the number of Fortune 500 companies with greater than 40 percent diversity has more than doubled from 69 to 145 since 2012. The full report is called, “Missing Pieces Report: The 2018 Board Diversity Census of Women and Minorities on Fortune 500 Boards,” and it is a multiyear study published by the Alliance for Board Diversity (ABD), in collaboration with Deloitte1.
The report did contain good news. Any increase in the diversity of Fortune 500 boards can only be taken as good news because it represents progress. But terms like “all-time high” and “rapid shifts” should be used with caution.
Were the numbers reported pure financial metrics, most Wall Street analysts would offer a fairly lukewarm response.
The new numbers do represent increases but we have to ask, “from how big of a base?” The representation of women and minorities moved to 34 percent (1,929 board seats), compared to 30.8 percent in 2016 (1,677 board seats). Total minority representation increased to 16.1 percent (912 board seats) from 12.8 percent in 2010.
Let’s celebrate progress but be wary of viewing this as a victory. Much work remains in this area. I encourage you to read the data here.
Will We Need Boards in the Future Economy?
31 Jan 2019
The future economy, with its emphasis on digital disruption and hyper-disintermediated business models, augurs change in the way businesses and companies are run and governed. The changing relationship between boards and management will have significant impact on the roles and responsibilities of directors.
Tonie Leatherberry Named Chair of The Executive Leadership Council
16 Jan 2019
Tonie Leatherberry, Principal, Deloitte & Touche LLP, and President of the Deloitte Foundation, has been elected chair of The Executive Leadership Council (ELC), the pre-eminent global organization composed of current and former black CEOs, senior executives, and board members of Fortune 1000 and equivalent companies; top-tier entrepreneurs; and global thought leaders.
Power In The Boardroom: Registry Of Black Corporate Board Members
Over the past six years, Black Enterprise has identified African Americans who serve on the boards of America’s largest publicly traded corporations.
Read more about the Black Enterprise Registry of Corporate Directors here.
Video – How to Become A Corporate Board Member
Watch the video to learn more about Deforest Soaries’ journey to the boardroom.
Soaries discusses how he gained entry to corporate boards, uses his position to impact change and the importance of diversity in corporate governance today.
Blog Post: Why Being A Part of Corporate Boards Matter
Just recently, a colleague asked me if I knew any African-American’s who served in C-suite roles with food or agriculture companies. I didn’t know anyone directly, but thanks to the database we keep through The Director Project, I was able to share eight names that fit the bill.
Perhaps this was an isolated conversation but I think not. As new companies form, spinoffs occur and Boards seek to diversify, we need better and more focused means of sharing the resumes of talented African-Americans who are capable of corporate board service.
Bold Action is Needed by Boards of Directors as Corporate Wealth Becomes Increasingly Concentrated, Says New Book
Are public corporations to be managed to support shareholder needs for constant growth, or are they to be managed to build long-term value for the future? According to a new book by turnaround and corporate governance expert Deborah Hicks Midanek, this debate forms the crux of a “Governance Revolution” currently underway, with an outcome likely important to every person on the planet.
Read more about What Every Board Member Needs to Know, NOW! here.
New California Law Forces Board Diversity, But Is It Right?
In a push to further corporate board diversity, California has enacted new legislation requiring publicly-traded firms in the state to have at least one woman on the board of directors.
Companies have until the end of 2019 to comply or face penalties. The more directors on the board, the more women the companies are required to add. For example, if a business has five directors, the law says it must add two women by 2021—six or more directors, then three women must be added to the board.