U.S. companies appoint more Black directors after social justice protests -report

Reuters

Published May 25, 2021 07:13AM ET

Updated May 25, 2021 09:15AM ET

By Jessica DiNapoli

NEW YORK (Reuters) - The number of African-American directors on corporate boards has risen significantly since the killing of George Floyd last year at the hands of Minneapolis police, according to a report by consultancy ISS Corporate Solutions.

The social justice protests after Floyd's murder one year ago sparked a racial reckoning in Corporate America, with leaders of major companies, led mostly by white men, promising to do better to recruit, retain and promote people of color.

S&P 500 companies appointed 165 directors who are Black, out of a total of 513 new corporate board members, from July 1, 2020 to May 19, 2021, according to ISS Corporate Solutions, or about 32%.

In the same period a year earlier, S&P 500 companies appointed just 55 Black board members out of 485 total new directors, according to the analysis, or about 11%.

"The needle has clearly moved," said Marija Kramer, head of ISS Corporate Solutions, in a statement.

Investors have called for more transparency on race, with proposals on corporate ballots requiring boards commission racial equity audits garnering support from shareholders. The audits analyze a company's impact on civil rights, equity and diversity.

ISS Corporate Solutions found that roughly half of the new directors who are Black were joining public company boards for the first time. Previously, about a third of Black directors were new to public board service.