CHICAGO, July 19, 2018 /PRNewswire/ -- In a
significant shift from the previous year, women have made
substantial progress in the boardroom, according to a new report
from Heidrick & Struggles (Nasdaq: HSII), a premier provider of
executive search, leadership assessment and development,
organization and team effectiveness, and culture shaping services
globally.
In Heidrick & Struggles' Board Monitor, an annual study of
trends in non-executive director appointments, women filled 38.3%
of all newly appointed independent board seats in Fortune 500
companies in 2017. This is the largest percentage of women among
new directors since the data was first tracked in 2009, up from
27.8% in 2016 (which at the time ended a seven-year run of
year-over-year gains in female director appointments).
Extrapolating data for 2017 using a three-year trailing average
method, Heidrick & Struggles projects parity with men in new
appointments by 2025.
For more information on the 2018 Board Monitor, visit
www.heidrick.com/Knowledge-Center/Publication/Board_Monitor_2018.
"This latest research indicates that boards are taking action to
make significant progress toward gender parity, contributing to the
dramatic spike we saw in women director appointments," said Bonnie
Gwin, vice chairman and co-managing partner of the CEO & Board
Practice, Heidrick & Struggles. "While we're optimistic about
this improvement from last year's report, there is still more work
to be done to improve gender diversity in the boardroom."
Despite improvement in appointments for women, there has been
only slight improvement in gender composition on boards overall,
with the overall percentage of women on Fortune 500 boards having
risen only to 22.2% in 2017, up 1.2 percentage points from the
previous year. This data indicates that most new female director
appointees were replacing other women who had left their board
roles.
"The Board Monitor findings align with the many conversations
we're having with our clients, who are increasingly looking for
diverse talent to bring fresh perspectives into their boardrooms,"
said Jeff Sanders, vice chairman and
co-managing partner of the CEO & Board Practice, Heidrick &
Struggles. "We are encouraged that this latest data shows an
acceleration toward greater representation of women on boards. As
companies look beyond the 'usual places' to fill open seats, they
are refreshing their boardrooms to be more reflective of today's
workforce and marketplace."
Other key findings of the study include:
- Nearly 36% of new board appointees in 2017 had no previous
board experience. This is up sharply from 25% in 2016, which is
at least partly in response to pressure in recent years to bring
new perspective to boards.
- Boards are also beginning to look beyond their traditional
first choice of CEOs to fill vacant seats. Current and former
CEOs accounted for 47% of director appointments in 2017, down from
50% in 2016, 54.4% in 2015, and well below the high of nearly 55%
in 2013.
- The share of new board appointments that went to
African-Americans rose from 9% to 11%, the highest ever. Some
33% of all African-American appointees went to industrial boards,
the same as last year; 23% went to consumer boards, and 21% to
financial services boards. These gains may be driven by the overall
awareness of the value and need for diversity on boards.
About Heidrick & Struggles:
Heidrick & Struggles (Nasdaq: HSII) serves the senior-level
talent and leadership needs of the world's top organizations as a
trusted advisor across executive search, leadership assessment and
development, organization and team effectiveness, and culture
shaping services. Heidrick & Struggles pioneered the profession
of executive search more than 60 years ago. Today, the firm
provides integrated leadership solutions to help our clients change
the world, one leadership team at a time.® www.heidrick.com
Media Contact:
Alex Brown
+1 312 496 1871
abrown@heidrick.com
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SOURCE Heidrick & Struggles