CFO Slice

Appointments of women and racial minorities to S&P 500 boards have fallen to their lowest level since 2014, according to new research by executive search firm Spencer Stuart, reflecting a broader retreat from diversity initiatives as the Trump administration intensifies its campaign against diversity, equity, and inclusion (DEI) programs. Spencer Stuart found that diverse candidates accounted for 40% of new independent board appointments over the past year, down from a peak of 72% in 2021 and 2022, although diverse directors still occupy 49.3% of board seats, only slightly below record levels. Recruiters and governance experts say the decline is being driven by changing legal, regulatory, and political pressures, as well as a greater focus on recruiting current and former CEOs, who represent a less diverse talent pool. Separate data from human resources analytics firm PeopleReturn also showed companies are becoming less likely to publicly cite diversity as a factor in board recruitment, while several large corporations have scaled back DEI policies following legal challenges and executive actions from the Trump administration. The shift has also been reinforced by a retreat from major institutional investors, including BlackRock, Vanguard, and State Street, which have removed or softened board diversity expectations in recent years.