Gap In LargeCap And SmallCap Board Diversity Continues To Grow
According to new research from Morningstar, “Small-cap companies are just reaching the level of board gender diversity that the S&P 500 was at a decade ago.”
Large-cap board diversity, particularly the boards of S&P 500 companies, continues to increase. Not only are smallcaps’ boards less diverse but the disparity in board gender diversity appears to be increasing through time. The graph above shows that the gap between the S&P 500 and the remaining companies in the Russell 3000 is growing, from 5.4% in 2009 to 8% today.
The Morningstar report concluded that “Whatever pressures are driving female representation at the upper end of the market-cap range, they are much weaker at the lower end of the range.”
Currently, Board Governance Research finds that 53% of microcaps in California have no female directors. A new law in California (S.B. 826) requires public companies headquartered in California to have at least one woman on their boards by 2019.