Recruiters and analysts say political, legal and investor pullbacks on DEI are reshaping U.S. board hiring even as overall board diversity remains near record highs.
Appointments of women and racial minorities to S&P 500 boards have fallen to their lowest level in more than a decade as U.S. President Donald Trump escalates his campaign against diversity, equity and inclusion programs and major investors retreat from earlier pressure on companies to diversify. New data from Spencer Stuart shows 40% of the 364 new independent directors named to S&P 500 boards in the year ended April 30 were women or racial minorities, down from a peak of 72% in 2021 and 2022 and the lowest share since 2014, when it was 39%. Overall board diversity remains high, with diverse directors holding 49.3% of S&P 500 seats, slightly below a record 49.6% in 2024 and 2025, but recruiters warn those gains could prove hard to sustain if current hiring patterns continue. Recruiters and analysts told Reuters boards are responding to changing legal, regulatory and political pressures, while searches have shifted toward current and former CEOs, a pool that is less diverse. Spencer Stuart said CEOs accounted for 37% of new directors this year, the highest level in 15 years. PeopleReturn data also shows fewer companies publicly citing diversity in board recruitment: 12% of S&P 500 companies now disclose using some form of diversity criteria, down from 23% in 2025 and 48% in 2024. The human resources analytics firm said board diversity peaked at nearly 50% this year. The pullback comes after Trump administration actions targeting DEI and after the 2023 Supreme Court ruling against considering race in college admissions triggered broader legal challenges to corporate diversity policies. Under Trump, the Equal Employment Opportunity Commission (U.S. workplace discrimination regulator) has been directed to root out what the administration calls illegal DEI practices. Trump also issued executive orders restricting certain DEI programs among federal contractors and in the federal government, saying last year that "our country will be woke no longer." Reuters reported the administration is threatening hefty fines for companies that do not comply. Corporate and investor behavior has shifted in parallel. Goldman Sachs dropped its requirement that companies it took public have at least two diverse board members, citing "legal developments." PeopleReturn CEO Josh Ramer said BlackRock, Vanguard and State Street have backed away from earlier board diversity expectations, easing pressure on large companies. In the C-suite (top executive ranks), women and racial minorities made up roughly 22% of S&P 500 CEOs last year, down from 23% a year earlier, according to Spencer Stuart. While conservative shareholder proposals seeking to weaken DEI have gained little support, interviews with recruiters, investors and analysts suggest companies are nonetheless placing less emphasis on diversity in board and executive recruitment.