LCDA and KPMG Report Highlights Steady Growth in Latino Representation on Fortune 1000 Boards
Latino Board Seats Increased from 2.7% in 2019 to 5.0% in 2023.
WASHINGTON, March 4, 2024 /PRNewswire/ -- The Latino Corporate Directors Association (LCDA) and KPMG, LLP jointly released a report, Latino Representation on Fortune 1000 Boards, 2023 Edition, today, shedding light on the progress and opportunities to advance Latino representation on Fortune 1000 boards.
Key findings reveal:
- Still Underrepresented: Latino board seats steadily increased from 2.7 percent in 2019 to 5.0 percent in 2023.
- Gender: There is room for improvement, as only 32 percent of Latino directors are female, holding steady over the last three years.
- Leadership Roles: 32 Latino chairs in 2023 served on public Fortune 1000 audit committees, a slight increase from 29 in the previous year. Latinos predominantly serve on audit and/or nominating/governance committees, both critical committees that influence board composition.
- Prevalence: It remains uncommon to find more than one Latino director on a Fortune 1000 board.
- State Specifics: Despite Texas and California having the highest percentage of Latino residents among states with at least 25 public Fortune 1000 companies, there exists a significant representation gap, with only 6 percent Latino representation on company boards in these states.
The study shows slightly greater gender diversity among Latino directors: 32 percent of Latino directors are women, compared to 30 percent of all public Fortune 1000 directors.
Among the newest Latino directors--those added to boards between January 2022 and June 2023--only 28 percent are women. Of all directors who joined public Fortune 1000 boards in the same time frame, 39 percent are women.
In terms of age diversity, Latino directors contribute to a younger demographic on boards. Roughly half of the Latino directors studied are under the age of 60, a notable contrast to the broader demographic of all public Fortune 1000 directors, where only one-third fall into this age bracket.
"The progress in increasing Latino representation on Fortune 1000 boards is encouraging, yet these findings highlight the continued need for diversity. With the Latino GDP at $3.2 trillion, it's essential to recognize that many boardrooms are missing out on valuable market insights by not actively seeking Hispanic/Latino directors. A sustained commitment to diversity not only enriches boardrooms but also fuels innovation and ensures sustained corporate success," stated Elizabeth Oliver-Farrow, LCDA Board Chair.
Industries making significant strides in Latino representation include engineering, food and beverage, chemicals, and energy. Over half of the companies in these sectors have at least one Latino director, showcasing a positive trend toward increased inclusivity of Latinos who comprise nearly 1 in 5 US residents.
"This report is a reminder that there is still much work to be done, as investors and other corporate stakeholders continue to call for increased board diversity. Board members with diversity of background, experience, and skills bring unique viewpoints and enrich conversations and decision-making," said Susan Angele, KPMG Board Leadership Center Senior Advisor.
LCDA and KPMG emphasize the importance of continued efforts to enhance Latino representation and diversity of skills and backgrounds on corporate boards. As stakeholders express a growing interest in board diversity, these findings underscore the need for sustained initiatives to promote inclusive leadership.
"LCDA stands as a crucial part of the solution to transform boardrooms into more inclusive spaces. We are the preeminent and trusted source for corporations and search firms. By bridging the network gap, influencing the candidate pool, and elevating Latino talent ready for the boardroom, LCDA is catalyzing a new era of transformation. Our commitment to diversity propels us toward a future where boardrooms reflect the rich tapestry of perspectives crucial for sustained success," emphasized Ozzie Gromada Meza, LCDA President and CEO.
For further details and to access the full report, please visit Latino representation on Fortune 1000 boards: 2023 Edition (kpmg.us)
LCDA provides an annual report, the Latino Board Monitor: Fortune 1000, an annual tracking of Fortune 1000 Board Representation, and an online tool, LatinoBoardTracker.org, that tracks Latino representation on Fortune 1000 boards. The tool raises awareness of the underrepresentation of Latinos on the boards of America's largest companies.
About Latino Corporate Directors Association (LCDA)
LCDA convenes accomplished Latino executives at the highest levels of corporate leadership who are committed to paying it forward and advancing the mission to develop, support and increase the number of US Hispanic/Latinos on corporate boards. LCDA has more than 550 members, including corporate board directors, senior executives, and business leaders. LCDA advocates for and provides talent to corporate boards, search firms, and private equity. To learn more visit, www.latinocorporatedirectors.org
About Latino Corporate Directors Education Foundation (LCDEF)
LCDEF is the affiliated foundation of LCDA. Together with LCDA, the foundation is committed to paving the way for the next generation of US Latina and Latino corporate directors. Its strategic priority is to prepare, position and grow the supply of Latino C-Suite executives prepared for corporate board service and lead with research-based reports and thought leadership. To learn more visit, www.latinocorporatedirectors.org/about_lcdef.php
About the KPMG Board Leadership Center
The KPMG Board Leadership Center (BLC) champions outstanding corporate governance to drive long-term value and enhance stakeholder confidence. Through an array of insights, perspectives, and programs, the BLC?which includes the KPMG Audit Committee Institute and close collaboration with other leading director organizations?promotes continuous education and improvement of public and private company governance. BLC engages with directors and business leaders on the critical issues driving board agendas?from strategy, risk, talent, and ESG to data governance, audit quality, proxy trends, and more. Learn more at kpmg.com/us/blc.
About KPMG Report Author
Annalisa Barrett is a senior advisor with the KPMG Board Leadership Center, where she leads research projects and develops thought leadership, in addition to providing insights to corporate boards on emerging trends in corporate governance.
Katie Keally is a manager of content creation with the KPMG Board Leadership Center.
Contact: Monique Navarro, LCDA AVP, Marketing and Communications, (915)790-7788
SOURCE Latino Corporate Directors Association
News published on and distributed by:
