Progress toward gender parity on boards has 'stagnated'

What you probably already know: No clear path exists to achieve gender equity on corporate boards, but women — and their male allies — continue to push for parity in cities across the U.S. despite the loss of federal backing. As of October 2024, women held 27.3% of board seats at large- and mid-cap companies, according to the most recent edition of MSCI’s Women on Boards and Beyond report. The tally is higher among Russell 3000 companies: Women represented 30.6% of new board hires at the end of Q1 of this year, marking a slight uptick compared to the end of 2024, according to 50/50 Women on Board’s Gender Diversity Index. Most of the new women directors didn’t replace seats held by men, but rather were brought on to fill new seats as boards expanded.

Why? Cate Goethals, an executive coach for women and the director of the UW Foster School of Business’s Women Board Director Development Program, said the largest increases in women directors are occurring among S&P 500 and Fortune 500 companies. A decade ago, female representation among boards at these large firms was in the single-digit percentile and has since risen to 35% or 36%, Goethals said. “But over the last six months, progress has sort of stagnated. It hasn't declined, but there's an upward trajectory that has leveled off,” she said. “The current environment leaves some boards with less appetite for seeking diversity.” Many large companies continue to seek out diverse candidates — they’re just quieter about doing so in light of the anti-DEI movement spearheaded by the Trump administration.

What it means: “There are a number of groups around the country that are unleashing very conservative activist-investors onto boards… who might spread misinformation like women are less qualified, etcetera, just by virtue of being women. They're not looking at the full picture. Nobody wants to deal with that, so they're not sticking their necks out,” Goethals said. Firms that stay the course risk backlash from those who are sympathetic with the White House’s attacks on DEI initiatives. Goethals pointed to Costco as an example: The Washington-based wholesale club doubled down on its diversity and inclusion commitments after a conservative think tank submitted a proposal that would have required Costco to evaluate any risks associated with its DEI practices. More than 98% of Costco shareholders voted against the proposal. “Costco has some really powerful people on its board, including Sally Jewell, who’s a wonderful female leader from [the Seattle area],” Goethals said. “They said, ‘No, diversity is an advantage — our customers like diverse employees, they like seeing themselves (represented) on the floor, it’s a competitive advantage in terms of creativity, thinking about which new products to bring on — so we’re not changing it.’”

What happens next: “My hope is that there will be a backlash to the backlash,” Goethals said. In the meantime, the advancement of gender equity in business is in the hands of women (and their allies) who are dedicated to righting the imbalance. Women entrepreneurs face persistent disparity in funding and investment opportunities — grants and business development programs exist to try to bridge the gaps, though these, too, are under attack, Goethals said. Still, local efforts are driving progress. “In Seattle, there is such a cadre of cool women who support other women, who mentor other women, who sponsor other women. That’s important,” she said. “It’s a growing movement; I think women have to support one another.”