Missing pieces report: Industry view

Introduction

The Missing Pieces Report: The 2018 Board Diversity Census of Women and Minorities on Fortune 500 Boards (Missing Pieces Report), a collaboration between the Alliance for Board Diversity and Deloitte, examined the progress made from 2016 to 2018 in adding women and minorities to public company boards of directors across America’s largest companies. Perhaps the most promising trend in that report was the increase in the number of Fortune 500 companies with greater than 40 percent of board members who are women and/or minorities—a figure that has nearly tripled since 2010. Nearly one-third of all Fortune 500 boards now have greater than 40 percent diversity, a target set by the Alliance for Board Diversity.¹

While progress is being made, the raw numbers are still small. Among other benefits, diversity has been linked to greater innovation, better financial outcomes,² and increased transparency for companies.³ Given these facts, the Alliance for Board Diversity and Deloitte examined the data from another angle by taking a look at the Fortune 500 in alignment with their respective industries.⁴ Viewing the numbers by industry allows for a deeper conversation about where headway has been made and where more opportunities for diversity in the boardroom may lie.

Key findings

Findings from the Missing Pieces Report revealed that nearly one-third of all Fortune 500 boards have greater than 40 percent diversity.

• Industries leading in having boards with greater than 40 percent diversity include technology, media, and telecommunications (42 percent); and life sciences and health care (38 percent).
• The industry with only 20 percent diversity is energy, resources, and industrials.

Percentage of total companies within each industry by diversity of board

About the Alliance for Board Diversity

Founded in 2004, the Alliance for Board Diversity (ABD) is a collaboration of four leadership organizations: Catalyst, The Executive Leadership Council (ELC), the Hispanic Association on Corporate Responsibility (HACR), and LEAP (Leadership Education for Asian Pacifics). Diversified Search, an executive search firm, is a founding partner of the alliance and serves as an advisor and facilitator. The ABD’s mission is to increase the representation of women and minorities on corporate boards. More information about ABD is available at www.theabd.org.