{"id":65900,"date":"2019-01-25T11:04:04","date_gmt":"2019-01-25T17:04:04","guid":{"rendered":"https:\/\/uwm.edu\/news\/?p=65900"},"modified":"2024-09-27T10:02:14","modified_gmt":"2024-09-27T15:02:14","slug":"as-us-diversifies-few-women-of-color-found-on-company-boards-of-directors","status":"publish","type":"post","link":"https:\/\/uwm.edu\/news\/as-us-diversifies-few-women-of-color-found-on-company-boards-of-directors\/","title":{"rendered":"As US diversifies, few women of color found on company boards of directors"},"content":{"rendered":"

Maria Goranova\u2019s latest research project drew inspiration from an unlikely source: Viola Davis. Goranova was watching the 2015 Emmy Awards show when Davis said something striking in her acceptance speech.<\/p>\n

\u201cThe only thing separating women of color from anyone else is the lack of opportunity,\u201d Davis said.<\/p>\n

Goranova is an associate professor at the Lubar School of Business with an expertise in corporate governance. Her research analyzes the management and guidance provided by boards of directors and shareholder activism.<\/p>\n

Davis\u2019 speech motivated Goranova to consider the representation of minority women on corporate boards.<\/p>\n

\u201cI thought, let me take a look,\u201d Goranova said. \u201cAnd I took a look, and I was surprised. I expected to see progress.\u201d<\/p>\n

In 2017, women occupied just 22 percent of seats on the boards of the companies in the S&P 500 index. With boards averaging 11 people, many times there are just one or two women in the room.<\/p>\n

\u201cWomen are just above token status on the boards,\u201d Goranova said.<\/p>\n

And it\u2019s even worse for minority women. Of the 5,406 board seats on the S&P 500, women of color occupied just 3.3 percent: African-American women held 120, Asian-American women 50 and Latina\/Hispanic women 31.<\/p>\n

And, Goranova says, S&P 500 boards are generally more diverse than the boards of midsize and small companies.<\/p>\n

Loss of perspective<\/h3>\n

That\u2019s a problem, Goranova said, in a country that is becoming more racially diverse. According to the Pew Research Center<\/a>, by 2050 no race in America will represent as much as 50 percent of the population.<\/p>\n

The purpose of a board of directors<\/a> is to provide oversight of a business, set the tone at the top and manage executive succession. Bringing diverse perspectives is thus critical. Board members are elected to their position by shareholders in the business.<\/p>\n

Goranova argues there are a multitude of factors that explain why trends for minority female directors have not kept up with progress made in education: from double-edge bias against women of color and lack of women CEOs and female executives in high-paid positions, to the even larger wealth and wage gap faced by minority females.<\/p>\n

Lubar and other MBA programs are attracting greater numbers of women than previously, but researchers still find a wage gap for MBA graduates, Goranova said.<\/p>\n

\u201cEducational progress has been made, but possibly not into the high-paying positions,\u201d she said.<\/p>\n

California is attempting to address the representation issue with a new state law that requires the boards of every publicly listed company with its headquarters in the state must include at least one woman by the end of 2019. By 2021, that requirement rises to three women for boards of six or more people.<\/p>\n

At that point, women\u2019s influence would reach what Goranova calls \u201ccritical mass,\u201d where their voices would carry enough weight to influence the boards\u2019 direction. This requirement, however, does not address the challenges and issues of tokenism faced by minority women.<\/p>\n","protected":false},"excerpt":{"rendered":"

America is becoming increasingly diverse, but the boards of directors of large companies aren\u2019t keeping up, 51ÁÔÆæ researcher Maria Goranova found.<\/p>\n","protected":false},"author":40008,"featured_media":65901,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","uwm_wg_additional_authors":[]},"categories":[174,175],"tags":[],"section":[132,246],"display_categories":[115,116],"related-coverage":[],"uwmnews-feed":[162],"class_list":["post-65900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-research","section-business","section-business-world-affairs","display_categories-top-story-secondary","display_categories-top-story-section","uwmnews-feed-business"],"yoast_head":"\nAs US diversifies, few women of color found on company boards of directors<\/title>\n<meta name=\"description\" content=\"America is becoming increasingly 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