Lack of Women, Minorities In Top Corporate Executive Posts Fuels Board Demand
by Joseph Daniel McCool, Senior Contributing Editor, ExecuNet

Companies are working to add or increase the representation of women and minorities to their boards of directors. But because they’re most interested in recruiting senior corporate executives to their boards and because women and minorities occupy so few of those leadership posts, the competition for some high-profile women and minority director candidates has intensified.

Research released by Spencer Stuart, the global executive recruiting firm, shows that America’s largest corporations can find experienced business executives qualified to become directors. However, the firm reports, the findings also indicate that the overall supply of suitable minority and women board candidates is still low.

The firm’s 2006 Board Diversity Report, a study of 2,357 directors of the top 200 S&P 500 companies, found 16% of the directors now are women and 15% are minorities, and that companies have reached those levels by recruiting from farther down management ranks and from the academic and nonprofit worlds. The study also found that women hold only 6% of the five highest-compensated executive positions, and that minorities similarly hold only 6% of the top five executive slots.

"CEOs and directors realize that board discussions are richer when individuals with diverse backgrounds and perspectives participate," says Julie Daum, practice leader for the North American Board Service Practice of Spencer Stuart. "The challenge is finding qualified women and minority candidates. Boards have a responsibility to shareholders to align the composition of the board with the business strategy by appointing directors who add value to the board and company. But, there is still only a small number of women and minorities among senior corporate executives, and they are in high demand."

First published in RecruitSmart Insider, ExecuNet’s biweekly market intelligence report.

Joseph Daniel McCool
Senior Contributing Editor
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