Why Are Latinos Absent From 65% Of Fortune 1000 Boards?
A Latino Corporate Directors Association (LCDA) report has revealed a lack of Latinx representation on giant company boards.
Lack of representation on company boards
According to the LCDA, Latino directors are missing from 47% of Fortune 100, 59% of Fortune 500, and 65% of Fortune 1000 boards. This means companies seriously lack Latino/Hispanic representatives on a higher level.
Despite Latinx people making up the second largest US population, with a total of 62.1 million, there has been no change in Fortune 100 companies adopting more diverse practices by having Hispanic/Latino representation on their boards.
Companies such as Amazon, Exxon Mobil, UnitedHealth, and Berkshire Hathway are just some companies on the list without Hispanics/Latinos on the board.
“A commitment to diversity and inclusion is incomplete without Latinos. Sixty-five percent of Fortune 1000 boards have no Latino directors, even though 2 in 10 Americans are Latino,” said Elizabeth Oliver-Farrow, LCDA Board Chair.
“We contribute 25 percent of the country’s GDP and will contribute 78 percent of net new workers to the workforce during this decade. This has to change.”
According to Aprio, diversifying a board’s composition can have unique advantages for organizations and can be essential to the success of a brand.
Benefits of a diverse board
A diverse board of directors must include various skills, cultures, ethnicities, and perspectives to reflect society truly. A lack of different perspectives can make it different for committees and organizations and impact the quality of some of the most crucial decision-making processes.
“The number of Latinos on boards is so small, and we keep hearing that organizations can’t find qualified candidates. With our growing LCDA network of members, we’ve proven there is an ample supply,” added Esther Aguilera, President and CEO of LCDA.
“Despite this strong qualified pool, Latinos have been systematically excluded and bypassed. This is unacceptable in 21st century America.”
The LCDA continues to work to change the misperception that Latino business leaders are hard to find by providing corporate boards with talent resources that can make finding Latino board directors and executives a lot easier.
