The State of Diversity on Boards 2023

In 2020, Goldman Sachs launched the Board Diversity Initiative - mandating that it would only take a company public in the US or Western Europe if it had at least one diverse board member. In 2021, they increased this to two diverse directors, one of which must be a woman. Since then, they've taken 295 companies public with their policy and have facilitated their 75th diverse board member placement.  

At the helm of this initiative is Ilana Wolfe, Head of Corporate Board Engagement at Goldman Sachs, leading their director programming and engagement efforts, as well as working closely with clients to source, identify and recommend talent for their corporate boards and has been with the leading global investment bank for over 17 years. Ilana also serves on the Nasdaq Center for Board Excellence’s Insights Council, helping to shape its strategy and insights, while working with other members to identify and address critical board governance matters.

theBoardlist serves as one of Goldman Sachs' partners in discovering new diverse talent so it was fitting to have our CEO, Megan Wang sit down with Ilana for a fireside chat about what they are both seeing in the current state of diversity on boards. 

Here are some key takeaways from the discussion: 

‍The Importance of Networking. There are many tools and resources board candidates can use to expand their knowledge base and network. Acquiring certification, or extended education is one tool for building confidence so that you have enough understanding of governance to show up confidently when you’re making connections, and expanding your network. There is also good old fashion networking by attending industry events or speaking at conferences to build a peer network that can help personally build upon your reputation. And, Megan and Ilana both agreed that before you do any sort of networking, candidates should always be backed up by their online presence.  By conducting a personal brand audit, you can ensure that any resulting organic searches happening can easily identify you and help build upon that reputation and trust.

‍Running a Skills Matrix & Gap Assessment is Critical for Building Better Boards. Understand where your board lacks specific expertise, and use it to inform your talent sourcing requirements. For talent partners looking to help companies expand their consideration set, looking at current operators with more focused areas of expertise help address specific gaps and also help bring more currency of knowledge to the board. Check out our Board Matrix template for further guidance.‍

Board Diversity Is Ever Evolving, And You Should Be Too. Ilana reminded us that in 2015, there were more men on corporate boards named John, Robert, William or James than there are women on boards altogether.  Today, 8 years later, female CEOs finally outnumber those named John.  While not a direct comparison, we can see that progress towards equality in the executive suite is slow, but continues to be made. Companies should be planning ahead to create opportunities earlier on in private company lifecycles, and candidates should also start early in their careers to build out their candidacy.‍

Your Role on a Board is Not an Operator, It Is an Advisor. Board candidates should have a broad strategic mindset which is key to being a good director. You may not be an expert in all areas, but having a general knowledge of the various factors and developments that are impacting companies and asking the right questions to ensure the company is thinking about it in the right way is imperative as a good board member. Ilana gave the example when interviewing for a board role to consider the company’s future goals and larger industry outlook, which will help demonstrate your strategic lens and thinking.

Recommended Reading: Make the Most of Your Board Interview‍

For more timely insights and in-depth analysis, watch the replay of the May 2023 State of Diversity on Boards event. The full replay is available for a limited time, but tBL Plus members can enjoy exclusive on-demand access to theBoardlist community event replays.

Visit theBoardlist Community Events calendar to stay up to date on upcoming events.