Q3 2024 Equilar Gender Diversity Index

Percentage of Women on Boards Plateaus in Third Quarter

December 10, 2024

Amit Batish

Following a milestone achievement during the second quarter of 2024, the latest update from Equilar’s Q3 2024 Gender Diversity Index (GDI) reveals that the growth of women on Russell 3000 boards has stalled. For the second consecutive quarter, women hold 30.1% of board seats across the Russell 3000, representing a plateau in progress.The GDI needle remained at 0.60, where 1.0 represents gender parity on boards.

Despite the slight slowdown in Q3, achieving the 30% milestone was viewed by many as a victory. The 30% mark was a result of years of steady advancements in gender diversity initiatives, including corporate governance reforms, investor pressure and legislative efforts in some jurisdictions. “Thirty percent has long been a point of interest, based on research indicating that inclusion increases once members of underrepresented groups pass this threshold,” said Susan Angele, Senior Advisor at KPMG’s Board Leadership Center. 

While diversity advocates applaud Russell 3000 companies for achieving this threshold, Angele explains there is more than meets the eye. “Gender diversity on boards can continue to be assessed through a number of lenses,” said Angele. “Given that the 30% figure is an average, are there still boards that fall below the threshold, and what will it take for them to catch up? To what extent have boards reached gender parity or above? To what extent are women serving in board leadership roles such as committee chair, lead director or board chair?” 

One of the key indicators to measure the state of gender diversity on boards is the percentage of new board appointments that are filled by women. During the third quarter, 31.2% of new Russell 3000 board directors were women, a 14.2% drop from the 36.4% reported in Q2 2024. Over the course of the last several quarters, this figure has fluctuated greatly, indicating that any acceleration in the overall presence of women on boards may vary by quarter moving forward. 

Year	New Board Appointments Filled by Women
Q3 2023	36.5
Q4 2023	39.1
Q1 2024	30.6
Q2 2024	36.4
Q3 2024	31.2

The most striking statistic in the Q3 analysis is the rise in the number of all-male boards within the Russell 3000. The number of companies with no women on their boards increased from 59 in Q2 to 69 in Q3 — a 17% jump. While 69 boards represent a small fraction of the total Russell 3000 universe, the increase is noteworthy, particularly at a time when DEI initiatives have come under scrutiny by activists.

“As companies consider their policies and practices in light of the current politicization of DEI, the consistent theme that I hear when I talk to board members is that in a world of increasing diversity, companies that understand how to harness the value of diversity will be the companies that win in the market for talent and customers,” said Angele. “This business imperative continues to be important to many investors as well, as they work to assess the quality of the boards and management of the companies in which they invest.”

Heading into 2025, trends in board diversity will certainly be worth keeping a close eye on. While Russell 3000 boards are far more diverse than they were when Equilar began tracking the GDI in 2016, it’s clear that movement has slowed down significantly. Whether this trend carries into 2025 remains to be seen, but diversity advocates will be monitoring closely.

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