Corporate Board Diversity Reporting Drops by 40% Amid Legal and Political Pressures

Public disclosure of racial and ethnic composition on corporate boards has plummeted across the US, reversing years of progress in transparency.

According to a new report from The Conference Board, the share of Russell 3000 companies reporting director race and ethnicity fell 40% from 2024 to 2025. In the S&P 500, the decline was 32%. The steep drop follows a 2024 court ruling that struck down Nasdaq’s board diversity disclosure rule and coincides with broader political and legal pressures discouraging public diversity commitments.

“Boards are pulling back from standardised reporting,” said Andrew Jones, Principal Researcher at The Conference Board. “This raises serious questions about the durability of recent gains in board diversity.”

Women now hold record representation on corporate boards, yet the pace of new appointments is slowing. Between 2022 and 2025, the share of newly appointed women directors fell by 9% in the Russell 3000 and 7% in the S&P 500. Analysts suggest that boards may be emphasising technical skills and risk management over demographic diversification.

RACE & ETHNICITY REPORTING

The decline in racial and ethnic disclosures is dramatic. In the Russell 3000, reporting dropped from 85% in 2024 to 45% in 2025. In the S&P 500, disclosure fell from 98% to 66%. Even compared with 2022, when reporting levels were already high, the decline is stark.

Corporate boards are aging slightly. Directors aged 66–70 now account for 22% of Russell 3000 boards and 26% of S&P 500 boards, up from 19% and 22%, respectively, in 2021. Meanwhile, mandatory retirement policies are becoming less common, suggesting boards are increasingly relying on performance assessments rather than fixed age limits.

“Boards appear to value institutional knowledge and continuity during uncertain times. But the trend also raises questions about succession planning and the development of a diverse pipeline of directors,” said Brian Campbell from The Conference Board Governance & Sustainability Center.

Expertise in technology, cybersecurity and human capital is increasingly highlighted on boards, while traditional areas such as strategy and law have declined slightly. Lawrence A. Cunningham from the University of Delaware noted: “Boards are embracing specialisation, especially in tech and cyber, but strategy remains dominant. Legal expertise is declining, likely reflecting a deregulatory environment.”

FEWER BOARD RENEWALS

Boards are appointing fewer new directors. In the Russell 3000, new directors fell from 13.3% of all board seats in 2022 to 8.6% in 2025. The S&P 500 saw a smaller decline, from 8.8% to 8.6%. Umesh Chandra Tiwari of ESGAUGE said this reflects consolidation after a period of board renewal, as companies stabilise amid political and market uncertainty.

Policies limiting directors’ service on multiple boards have grown, rising from 44% to 56% in the Russell 3000 and 68% to 85% in the S&P 500 since 2020. “Complex sectors like finance and utilities often adopt stricter caps due to heavier oversight demands,” noted Richard Fields of Russell Reynolds Associates.

IMPLICATIONS FOR ORGANISATIONS

The sharp decline in board diversity reporting signals a potential setback for corporate transparency and accountability. Organisations may face increased scrutiny from investors, employees and stakeholders who view diversity disclosure as a measure of governance quality and long-term risk management.

Without consistent reporting, companies could struggle to benchmark progress, identify gaps in leadership representation, and sustain the gains made in gender, racial and ethnic diversity. Experts warn that this retreat may also slow the pace of inclusive leadership, making it more difficult for boards to cultivate a broad pipeline of talent equipped to navigate complex and rapidly evolving business challenges.

The report, produced with ESGAUGE, Russell Reynolds Associates, KPMG and the John L Weinberg Center for Corporate Governance at the University of Delaware, analyses data from proxy statements and public filings through October 10, 2025. It highlights trends in board composition, expertise and governance standards across America’s largest companies.

Download the full report here.

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