Decline in African-American Fortune 500 boardmembers

[Blue_Tires]

A recent study on African-Americans on boards of directors of Fortune 500 companies commissioned by The Executive Leadership Council® found that the number of board seats held by African-Americans has declined since its inaugural board report released in 2004. The percentage of African-Americans on corporate boards decreased from 8.1 in 2004 to 7.4 percent in 2008, a .7 percent decline. Four years ago, African-Americans held 449 corporate board seats and today they hold 413 or thirty-six fewer.

"African-Americans lost ground in the boardrooms of corporate America between 2004 and 2008," said Dr. Ancella B. Livers, executive director of The Executive Leadership Council’s Institute for Leadership Development & Research. "The total number of board seats during the period declined as well, but not nearly as much as the number of seats held by African-Americans. In light of current economic conditions and board reviews, there is an opportunity for companies to increase board diversity and reverse the downward trend."

There were 5,556 director seats available in 2008, 16 fewer than the 5,572 available in 2004. The importance of diversity on corporate boards is likely to become more apparent as organizations recognize that changing demographics are altering the nation’s business needs. Many corporations realize the benefits they have achieved from a diverse workforce and are beginning to make inroads on their governing boards of directors. The study shows that the higher an organization is on the Fortune 500 list, the more likely it is to have African-Americans on its board of directors.

"It’s been proven again and again that companies with board members who reflect gender & ethnic diversity also tend to have better returns on equity and sales," said Carl Brooks, president and CEO of The Executive Leadership Council.

http://www.hvpress.net/news/119/ARTICLE/7507/2009-08-05.html