It is important to note the growing number of investors willing to vote “No” on Nominating Committee members or against the whole board if a board is inadequately diverse. This sends a strong signal that a record of poor board diversity is a failure in governance.
BOCA RATON, Fla. (PRWEB) July 16, 2020
Representing more than $6 trillion in assets under management, institutional investor members of the Thirty Percent Coalition engaged over 250 companies during the past year as part of the Coalition’s “Adopt a Company” campaign. Following these engagements, achievements include:
- 115 companies appointed a woman to their boards, most for the first time
- 30 companies appointed a second woman to their board
- 37 shareholder proposals filed urging action and disclosure on board diversity
- 33 of the shareholder proposals were withdrawn following mutually agreeable outcomes
- 390 companies have appointed a woman to the board, most for the first time, since the “Adopt a Company” campaign launched in 2012 *
*Results are derived from the Coalition’s database and data provided by FactSet.
“We are encouraged by the progress achieved this year. Our investors are engaging companies at an accelerated pace with positive responses. The request that diversity, inclusive of race, ethnicity and gender be considered as a priority in board composition, along with the addition of the Rooney Rule, is being well received,” stated Mary Morris, co-chair of the Coalition’s Institutional Investor Committee and Investment Officer at CalSTRS.
“The number of diversity resolutions increased by over 20% this year. We continue to be optimistic in light of agreements reached through collaborative discussions between investors and management representatives. It is important to note the growing number of investors willing to vote “No” on Nominating Committee members or against the whole board if a board is inadequately diverse. This sends a strong signal that a record of poor board diversity is a failure in governance,” said Tim Smith, co-chair of the Coalition’s Institutional Investor Committee and Director of ESG Shareowner Engagement at Boston Trust Walden.
Call to Action:
Given the growing momentum for a wider diversity on boards, as well as greater disclosure, the Thirty Percent Coalition asks companies to undertake the following:
- Disclosure in the Proxy of board composition inclusive of gender, race, and ethnicity
- Language committing to diversity in Governance charters to ensure the board is casting the net wide for the best talent to help them meet their long-term business plans and strategy
- Disclosure of future plans to make progress on board diversity
- Adaptation of the Rooney Rule for board candidates and senior leadership
- Consideration of board candidates with leadership skills outside those of the typical business CEO, i.e. academia, regulatory, etc.
About The Thirty Percent Coalition
Founded in 2011, the Thirty Percent Coalition is a pioneer in promoting diversity in the corporate boardroom. The mission is to advocate for diversity on corporate boards, promoting women and people of color. The Coalition provides a national forum where its members develop strategies to influence companies to increase diversity in senior leadership and boardrooms. Membership includes public companies, private equity, institutional investors, state treasurers, professional services firms and advocacy groups working together for the first time. In 2020, Coalition members represent over $6 trillion in assets under management. There is no other organization of this kind in the US.
Company and Media Contact: Charlotte Laurent-Ottomane, Executive Director, Thirty Percent Coalition. Email: firstname.lastname@example.org,Tel. (209) 505 3690
1. Commitment to adding women and people of color to the candidate pool.