WASHINGTON, Nov. 12, 2019 /PRNewswire/ -- The Latino Corporate Directors Association (LCDA), with audit, tax, and advisory firm KPMG LLP, today released a new report that shows – despite growing shareholder interest in corporate diversity – there remains a substantial shortage of Latino/a representation on F1000 boards. This research showcases significant gaps in states with sizeable Latino populations (Texas, Florida, and California) and across industries such as technology, materials, and aerospace and defense.
Findings by State
Findings compare the Hispanic population in US states with Latino board representation for F1000 companies headquartered in those states.
- Although well over one-third (38.9%) of Texas residents are Hispanic, only 2.2% of the directors serving on the boards of companies headquartered in the state are Latino.
- Similarly, only 2.3% of the directors of companies headquartered in California are Latino despite the fact that 38.8% of the residents are Hispanic.
- Florida- headquartered companies have the highest percentage of Latino directors serving on their boards at 5.4%; however, this still pales in comparison to the 24.7% of the Florida population which is Hispanic.
Findings by Sector
Findings compare Latino representation on Fortune 1000 companies analyzed by sectors used for classification.
- The technology industry lags the farthest behind with only one in eight (12.6%) of tech companies having one or more Latinos on their boards.
- Both the materials and aerospace and defense industries also show poor representation with just 1.8% and 1.9% of their board seats held by Latinos.
- The industry with the highest prevalence of Latino directors is the engineering and construction industry (4.7%), followed closely by the transportation industry (4.4%).
These findings are an extension of research published at LCDA's Annual Convening on October 16-18, in partnership with Diversified Search, that highlights how the number of Latinos on Fortune 1000 company boards has scarcely moved over the last three years, from 2.3% to 2.7%. The percentage of directors serving on F1000 boards who are Latina is just 0.85%.
"At a time where nearly one in five (18.3%) U.S. residents are Latino, it's striking that 77% of boards in the F1000 don't have a single Latino/a represented," noted Esther Aguilera, CEO of LCDA.
Roel Campos, LCDA Board Chair and former SEC Commissioner, added, "Latinos accounted for 82% of the growth in the U.S. labor-force between 2010 and 2017 and GDP among Latinos has grown at a faster rate – from $1.7 billion in 2010 to $2.3 billion in 2017 – than the overall U.S. economy. It's clear that while Latinos are a driving force fueling America's economy, this population remains an under-tapped asset for corporate boards."
For more information about LCDA please go to www.latinocorporatedirectors.org
ABOUT THE LATINO CORPORATE DIRECTOR'S ASSOCIATION
The Latino Corporate Directors Association (LCDA) is a leading, national organization promoting C-level and board diversity to maximize business success. LCDA serves as an advocate and resource to corporate boards, search firms, private equity, and institutional investors interested in gaining access to exceptional Latino board talent. Our program areas focus on growing the supply of high-caliber boardroom candidates and providing quality corporate governance programming for experienced and aspiring directors.
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SOURCE The Latino Corporate Directors Association