Major Decline in Board Diversity Disclosure Raises Concerns in Corporate America
In a recent report from The Conference Board, significant changes in corporate America regarding board diversity disclosure have come to light. Between 2024 and 2025, there was a startling decline in the percentage of companies publicly reporting on the race and ethnicity of their board members. Specifically, the Russell 3000 saw a drop of 40% in disclosures, while the S&P 500 experienced a 32% decline. Andrew Jones, Principal Researcher at The Conference Board, highlighted that this sharp reversal in standardized reporting is largely attributed to a 2024 court ruling that struck down Nasdaq's mandate for board diversity disclosures. This decision, combined with increasing legal and political hurdles associated with diversity, equity, and inclusion (DEI) initiatives, suggests that the past gains in board representation for minority groups may be at risk.
When examining gender diversity on boards, the findings showcase a paradox. While the representation of women has reached historical highs, the momentum is beginning to wane. From 2022 to 2025, newly appointed women directors in the Russell 3000 experienced a 9% decrease, dropping from 42% to 33%. Similarly, the S&P 500 saw a reduction from 43% to 36%. This slowdown might indicate that some boards are prioritizing expertise related to technical skills or risk management over demographic diversity.
In terms of racial and ethnic diversity transparency, the statistics deliver a sobering overview. In the Russell 3000, the percentage of companies disclosing data on directors' racial or ethnic backgrounds plummeted from 85% in 2024 to just 45% in 2025. For the S&P 500, the figures fell from 98% to 66%. This trend is concerning, especially given that in 2022, disclosure was already considerably high at 80% for Russell 3000 companies and 95% for those in the S&P 500.
Key trends have also been observed regarding director demographics and age. Companies seem to be placing a stronger emphasis on retaining seasoned board members as opposed to refreshing their boards. Although representation of individuals under 55 is either stagnant or declining, there has been an increase in older directors. In the Russell 3000, the percentage of directors aged 66-70 grew from 19% in 2021 to 22% in 2025.
Interestingly, mandatory retirement policies are losing traction as boards prefer flexibility over fixed age caps. From 2021 to 2025, the requirement for mandatory retirement ages decreased from 38% to 36% in the Russell 3000 and from 67% to 62% in the S&P 500.
As boards adapt to a more complex landscape of governance, skills and qualifications on boards are evolving as well. The report notes a notable shift towards expertise in technology, cybersecurity, and human capital—departing from traditional areas like legal practices and strategic planning.
Specifically, tech expertise disclosure surged from 15% to 30% within the Russell 3000. Cybersecurity knowledge increased from 8% to 17% and expertise in human capital went up from 17% to 28% in the same index. Conversely, the prominence of strategy and law credentials has slightly receded. The declining legal expertise may be a response to a more deregulatory perception among boards, which presents a transient phase rather than a lasting change.
In conclusion, while there are indications of success in achieving higher board representation, the latest findings highlight a pronounced regression in disclosure practices surrounding racial and ethnic diversity. This decline raises fundamental questions about the sustainability of previous diversity achievements and the commitment of corporate America toward inclusive governance practices. As organizations recalibrate their strategies, the effectiveness and implications of these changes in board composition warrant close attention.
When examining gender diversity on boards, the findings showcase a paradox. While the representation of women has reached historical highs, the momentum is beginning to wane. From 2022 to 2025, newly appointed women directors in the Russell 3000 experienced a 9% decrease, dropping from 42% to 33%. Similarly, the S&P 500 saw a reduction from 43% to 36%. This slowdown might indicate that some boards are prioritizing expertise related to technical skills or risk management over demographic diversity.
In terms of racial and ethnic diversity transparency, the statistics deliver a sobering overview. In the Russell 3000, the percentage of companies disclosing data on directors' racial or ethnic backgrounds plummeted from 85% in 2024 to just 45% in 2025. For the S&P 500, the figures fell from 98% to 66%. This trend is concerning, especially given that in 2022, disclosure was already considerably high at 80% for Russell 3000 companies and 95% for those in the S&P 500.
Key trends have also been observed regarding director demographics and age. Companies seem to be placing a stronger emphasis on retaining seasoned board members as opposed to refreshing their boards. Although representation of individuals under 55 is either stagnant or declining, there has been an increase in older directors. In the Russell 3000, the percentage of directors aged 66-70 grew from 19% in 2021 to 22% in 2025.
Interestingly, mandatory retirement policies are losing traction as boards prefer flexibility over fixed age caps. From 2021 to 2025, the requirement for mandatory retirement ages decreased from 38% to 36% in the Russell 3000 and from 67% to 62% in the S&P 500.
As boards adapt to a more complex landscape of governance, skills and qualifications on boards are evolving as well. The report notes a notable shift towards expertise in technology, cybersecurity, and human capital—departing from traditional areas like legal practices and strategic planning.
Specifically, tech expertise disclosure surged from 15% to 30% within the Russell 3000. Cybersecurity knowledge increased from 8% to 17% and expertise in human capital went up from 17% to 28% in the same index. Conversely, the prominence of strategy and law credentials has slightly receded. The declining legal expertise may be a response to a more deregulatory perception among boards, which presents a transient phase rather than a lasting change.
In conclusion, while there are indications of success in achieving higher board representation, the latest findings highlight a pronounced regression in disclosure practices surrounding racial and ethnic diversity. This decline raises fundamental questions about the sustainability of previous diversity achievements and the commitment of corporate America toward inclusive governance practices. As organizations recalibrate their strategies, the effectiveness and implications of these changes in board composition warrant close attention.
Topics Policy & Public Interest）
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