For a third consecutive quarter, the Equilar Gender Diversity Index (GDI) increased. The percentage of women on Russell 3000 boards increased from 16.9% to 17.7% between March 31 and June 30, 2018. This acceleration moved the needle, pushing the GDI to 0.35, where 1.0 represents parity among men and women on corporate boards.
Key takeaways from the GDI this quarter:
- Over one-third of new board seats, 34.9% in Q2, were filled by women, up from 32% in Q1.
- 17.1% of boards have zero women directors, continuing the decreasing trend from the previous quarter.
- In Q2 2018, the number of boards that achieved parity reached 39—an increase of eight from the previous quarter. The number of boards with female representation between 40% and 50% also increased by nine, reaching 71.
“In addition to investor focus, I see a confluence of events that should play out over time,” said Susan Angele, Senior Advisor of Board Governance at KPMG’s Board Leadership Center. “The changes in the business environment and expectations on boards—including technological disruption, competition coming from outside the industry, changing demographics, culture and risk—all of these forces are making it more important for the boardroom to include directors with a mix of backgrounds and experience.”
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