Good morning, Broadsheet readers! A private equity firm agrees to a multi-billion-dollar purchase of Darktrace, Australians protest violence against women, and boards aren’t taking full advantage of their female talent. Have a mindful Monday.
– Above board. Women hold 33% of board seats throughout the S&P 500. And yet, only 65% of female board members feel they wield influence on their boards, compared to 81% of male board directors.
The finding comes from a recent report by organizational consulting firm Korn Ferry. In a survey of 183 board members, the firm found that women and people of color who hold board seats don’t feel like they influence board-level decision-making. Seventy-six percent of white board members said they felt they’d shaped board decisions compared to 70% of nonwhite board members.
These numbers contrast directors’ stated views on diversity: 81% said they value diversity on boards.
“Having the representation on the board is a very important first step, but it does not ensure that the board is making optimal use of all of the voices around the table,” says Jane Stevenson, Korn Ferry vice chair for board and CEO services.
The firm embarked on this report after hearing anecdotal feedback from board directors in its network. Directors told the firm, “I’m on the board, it’s a great board, but I’m having trouble breaking in,” Stevenson recalls.
Boards, like any institution, often have an “in group” or inner circle—the directors who drive conversation and influence others. Women and people of color are more likely to be newer members of the board following recent efforts to diversify U.S. boardrooms—and, as such, are currently left out of in groups.
To help solve this issue, Korn Ferry advises individual board members to do “pre-work”—reading up on the issues that will be debated at board meetings and clarifying their perspectives—and seek out sponsors on their boards who can elevate their contributions. More importantly, board chairs can adopt tactics like insisting every member shares their viewpoint on a certain topic.
“There’s an opportunity for boards to ensure that they’re getting the best insight and perspectives from each of their board members,” Stevenson says.
Emma Hinchliffe
[email protected]
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