If boards are to make real and lasting progress in adding female and minority directors, then we need to be clear-eyed about what’s standing in the way.
First, turnover on American boards is at a low. Only 7.6% of board seats in the 100 largest U.S. companies changed hands in fiscal year 2010, according to Korn/Ferry research. Concurrent studies tracking the S&P 500 found that the number of new independent director appointments was down 25% compared to just five years earlier.
So boards just aren’t opening up enough new seats, period. Further tightening this opportunity bottleneck are the competing pressures for adding expertise: globalization, financial risk management, and technological change. When those needs feel particularly acute, urgency can supersede other interests, including diversity.
See full Article: http://www.kornferryinstitute.com/reports-insights/breathing-room-boards
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