The Equilar Institute provides in-depth research and analysis on boards of directors, shareholder engagement, executive compensation and other issues affecting the world of corporate governance. Below are some key highlights from the last quarter that showcase the breadth of information available in public filings via the Equilar database. Visit www.equilar.com/institute or www.equilar.com/blog.html to read these articles in full as well as many more.
Every quarter, Equilar tracks CEO departures and appointments across the Equilar 500. Through Q2 of 2022, 25 Equilar 500 companies announced CEO departures. The tracker also reported that of all the appointed CEOs in 2022 so far, 17% are external, in line with 17% in all of 2021. Just two female CEOs have been appointed as of Q2 2022.
In light of diversity being at the forefront for corporate boards, as well as the striking down of California’s AB 979 by a California Superior Court judge, Equilar analyzed the prevalence of ethnically diverse directors across the Equilar 500 and the Russell 3000. The results showed that 44.6% of board seats in the Equilar 500 were diverse compared to 36.1% in the Russell 3000. Of all the industries surveyed, real estate had the highest percentage of diverse board members, with energy having the lowest.
As the focus on diversity across Corporate America becomes more prevalent, corporations have made substantial efforts to bring more women into the boardroom. In Q2 of 2022, the Equilar Gender Diversity Index (GDI) increased from 0.54 to 0.56, with 27.9% of the 26,341 Russell 3000 board seats occupied by women, compared to 27.2% in Q1 2022. While progress continues, momentum has slowed from previous quarters.