Board diversity continues to be at the forefront of corporate governance discussions, widely recognized as both a matter of equity and a driver of stronger decision-making and business performance. Yet, recent political and regulatory developments have raised new questions about its trajectory. Following President Trump’s executive order terminating diversity, equity and inclusion programs in the federal government, public companies have also started to reassess their own commitments. While the executive order only applies to federal agencies, its ripple effects are evident amongst public corporations, where larger companies in particular appear to be slowing or scaling back DEI initiatives. This raises the question on potential long-term impact for underrepresented ethnic groups.

Data from the Russell 3000 indicates that ethnic diversity among new board appointments declined in recent years. The prevalence of ethnically diverse individuals filling new board seats fell sharply, dropping from 23.3% in 2022 to 18.2% in 2024—a 21.9% decrease.

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