Top 10 Topics For Directors In 2019: Board Diversity

Public companies are facing increasing pressure from corporate governance groups, investors, regulators and other stakeholders to improve gender and other diversity on the board, as advocates and studies continue to focus on the business case for diversity. For example, as a recent McKinsey report highlights, many successful companies regard inclusion and diversity as a source of competitive advantage and, specifically, as a key enabler of growth.

Institutional investors and proxy advisory firms have gained considerable influence over corporate boards. According to a 2018 proxy season review by Broadridge Financial Solutions and PwC, institutional investors own 70 percent of U.S. public companies, and institutional shareholder voting participation is 91 percent. These institutions are increasingly applying pressure on boards to promote diversity, including by engaging with companies and withholding votes for directors.