(The Hill) — Recent findings reveal a decrease in boardroom diversity within S&P 500 companies, dipping to its lowest point in over ten years.
Global advisory firm Spencer Stuart’s latest analysis indicates that the representation of diverse groups in corporate boardrooms has been waning since it reached a peak of 72 percent in 2021. Additionally, the influx of new directors to these boards has dropped to levels not seen since 2006.
Currently, directors from diverse backgrounds occupy 49.3% of board seats, slightly lower than the 49.6% record set in 2024, as reported by Spencer Stuart.
George Anderson from Spencer Stuart shared with Reuters that boards are adjusting to evolving legal, regulatory, and political landscapes.
A significant 2023 Supreme Court ruling, which deemed race consideration in college admissions unlawful, coupled with the Trump administration’s sustained criticism of diversity, equity, and inclusion (DEI) initiatives, has prompted many companies to withdraw from such programs. This sentiment was echoed in a March White House fact sheet, labeling DEI efforts as “racially discriminatory” and adding “real costs on the American people.”
President Donald Trump’s executive order on DEI initiatives called them “illegal” and stated they “not only violate the text and spirit of our longstanding Federal civil-rights laws, they also undermine our national unity” and “American values.”
Companies – including Meta, Google and some Wall Street banks – abandoned DEI initiatives in the wake of Trump administration attacks.
Other companies have taken a different approach, such as Costco, which rejected demands from the National Center for Public Policy Research to report the risks of maintaining its DEI policies.
“We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed,” the company said in a statement about the proposal, urging shareholders to vote against it.
The Spencer Stuart analysis was conducted on data collected between May 1, 2025, and April 30, 2026. The data included draws on the latest proxy statements from 488 companies.