The Latino Corporate Directors Association (LCDA), the leading national organization promoting Hispanic/Latino representation on corporate boards, released its annual report: “Latino Board Monitor 2022,” which reveals the lack of U.S. Hispanic/Latino representation on the boards of the nation’s largest companies.
According to LCDA, Latino directors are missing from 47% of Fortune 100 boards and 59% of Fortune 500 boards, while the Fortune 1000 fares worse, with 65% of companies lacking the Hispanic/Latino perspective.
“In a country where the U.S. Latino GDP is $2.7 trillion and, over the past two years, has grown at twice the rate of the overall U.S. economy, companies need this perspective in their boardrooms. Suppose companies want to grow and keep pace in this new mainstream economy. In that case, all boards must immediately start placing Latinos on their boards and in C-Suite positions…because we all know that no one wants to be seen as leaving money on the table,” stated Sol Trujillo, Co-Founder of L’ATTITUDE.
The report indicates that Fortune 1000 companies lack Latino representation on the board, including Amazon, UnitedHealth Group, Berkshire Hathaway, Amerisource Bergen, and others.
“A commitment to diversity and inclusion is incomplete without Latinos. 65% of Fortune 1000 boards have no Latino directors, even though 2 in 10 Americans are Latino. We contribute 25% of the country’s GDP and will contribute 78% of net new workers to the workforce this decade. This has to change,” said Elizabeth Oliver-Farrow, chair of the LCDA board.
U.S. Latinos are the second largest population group in the country at 62.1 million but have the widest representation gap to close in the boardroom.
LCDA says progress is being made to diversify S&P 500 boardrooms, with African American Americans holding 11% of total board seats and 26% of new appointments and Asians holding 6% of total board seats and 10% of new appointments.
Still, says LCDA, Hispanics/Latinos continue to be the least utilized for board seats, with only 5% of total seats and 8% of new appointments.
The Association notes that it continues to work to change the misperception that Latino business leaders are hard to find by providing corporate boards with a reliable talent resource for experienced Latino board directors and executives ready to lead.
“The number of Latinos on boards is very small, and we keep hearing that organizations can’t find qualified candidates. With our growing network of LCDA members, we have demonstrated ample supply, and that excuse no longer applies. Latinos have been systematically excluded and overlooked for too long despite this strong qualified pool. This is unacceptable in 21st century America,” said Esther Aguilera, president, and CEO of LCDA.