| Over the past year, the lack of racial, gender and ethnic diversity in American boardrooms has exploded as a governance issue. While many voices have raised concerns on board diversity, activist investors were among the first critics, and have been some of the most influential. The author, a partner at activist investment firm Barington Capital Group, explains why. |
| The Business Roundtable (BRT) statement, which claimed to move away from traditional shareholder primacy, was widely seen as a major shift in corporate philosophy when released in 2019. The authors' analysis of the evidence, however, suggests that BRT signatories did not intend, and should not be expected, to make significant changes in the treatment of stakeholders. |
The lack of diversity (and especially black talents) in corporate America has been a source of concern for years. In 2020, with nationwide protests over racism and inequity, these voices are shaking up attitudes in the C-suite and boardrooms
Ursula Burns has a vitae that gives her authority on both sides of this divide. Former board chair and CEO of Xerox, her current board roles include Uber, Nestle, ExxonMobil and Teneo. She was a black female corporate pioneer, with deep insights on the ways our corporate and economic system make it difficult for black talents to advance in top executive roles, and into the boardroom.
Burns has joined with other black business leaders (including Fontis Partners' Gabrielle Sulzberger) and such groups as Teneo, the Ford Foundation, and the Executive Leadership Council to launch the Board Diversity Action Alliance. The Alliance has a simple, but daring goal: convince major corporations to pledge to increase black board membership, and commit to regular disclosure on their boards' diversity makeup.
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