Seattle-area tech companies are joining a national movement to increase the diversity on U.S. corporate boards of directors by adding Black members.
Companies including Accolade, Amperity, Heritage Environmental Services, RealSelf and Zillow are pledging to appoint at least one Black director to their boards within a year’s time.
The effort, which officially kicks off Wednesday, is called The Board Challenge. It was started by Altimeter Capital, Valence and theBoardlist. More than 40 companies have come out in support.
We can't let this moment pass us by without taking action. We've launched a pledge for U.S. boards of directors to add a Black director within a year.
Learn more about #TheBoardChallenge: https://t.co/JN0sVOgIJe pic.twitter.com/DDPv66R3Lj
— The Board Challenge (@boardchallenge_) September 9, 2020
Backers of the initiative, which include the NAACP and National Urban League, cite data showing an underrepresentation of Black board members, and the economic benefits of bringing more diversity to these roles.
- Among Fortune 500 companies, 9% of board members are Black men or women, reports theBoardlist.
- Of S&P 500 companies, 37% lacked any Black directors, according to Black Enterprise.
- Diverse boards are 43% more likely than non-diverse boards “to achieve financial performance above the national industry medium for companies in the top quartile vs. bottom quartile,” according to a 2018 report by McKinsey & Company.
Zillow Group CEO Rich Barton said in a blog post that the real estate platform was currently interviewing Black candidates for its board.
“The perspectives and ideas we listen to, and the voices we elevate, will determine the future of our industries, our companies, and ultimately our world,” Barton said. “It’s obvious that Black people are underrepresented in corporate boardrooms and other positions of leadership and power. It is something we don’t talk about enough. The Board Challenge is an opportunity to talk about it more and do something about it. We are in.”
Other Northwest companies already have at least one Black member on their boards, including Nordstrom and Redfin. Those corporations are joining the effort as a Charter Pledge Partners.
