The share of new female board appointments at S&P 500 companies decreased from 41% in 2024 to 37% in the first five months of this year, marking the lowest level in six years. For companies in the broader Russell 3000 index, this figure dropped to 34%, also a six-year low, according to the Conference Board. This decline highlights a wider reduction in corporate America's gender diversity initiatives amidst a challenging political and legal environment.
This downturn intensified after Donald Trump's return to office. Shortly after his election, the Nasdaq stock exchange lost a legal challenge regarding its rule requiring listed companies to have at least one female director. Corporate executives report that a wave of lawsuits from conservative groups in 2023 has fueled a backlash against diversity, equity, and inclusion (DEI) efforts, making women-focused career initiatives riskier to implement. Andrew Jones, a researcher at the Conference Board, notes that while a complete collapse in female director appointments isn't expected, this slowdown may persist as diversity initiatives are no longer as prioritized.
Even before Trump's return, the environment for gender diversity was shifting. A McKinsey survey found that only 16% of respondents offered women-focused sponsorship programs in 2024, down from 24% in 2022 and 31% in 2017. A March survey by Resume Builder of 864 US managers indicated that 24% of respondents felt women received less respect in the workplace since Trump took office. Stacie Haller, chief career adviser at Resume Builder, expressed concern that the shift effectively grants permission for renewed bias against women, while some Fortune 500 executives state they no longer feel pressured to prioritize gender diversity.
