Good morning, Broadsheet readers! The Scholastic successor grapples with her new ownership, First Lady Jill Biden visits a church important to her faith, and boards of directors have an ah-ha moment. Have a thoughtful Tuesday.
– On board. The share of female directors in the S&P 500 has slowly ticked up in the last decade, from 16% to 28%, but representation of Black and Latinx directors remains low at 5% and 3%, respectively.
Those are two of the trends PwC’s 2021 Annual Corporate Directors Survey digs into, and the findings are somewhat encouraging:
More than 9 out of 10 directors say their board has taken action to address its own diversity in the past two years; for a majority of directors—69%—that’s meant replacing a retiring director with someone who increases the group’s diversity.
Racial diversity—a clear problem area for boards—is climbing up the agenda. “Racial/ethnic diversity” is the top attribute respondents are looking for in their board’s next director, beating out industry expertise, operational expertise, and gender diversity.
A vast majority of directors agree that diversity “brings unique perspectives to the boardroom” (93%), “improves relationships with investors” (90%), and “enhances board performance” (85%). But even with those results, 58% of directors say diversity is driven by political correctness, a six point increase from 2020.
As a whole, the survey suggests directors understand the benefits of boardroom diversity. So why isn’t it improving faster? Directors blame a too few qualified candidates (45%), long-serving directors who won’t retire (39%), and an over-reliance on directors’ own networks to find candidates (38%).
The survey did unearth what PwC calls a “seismic shift” that suggests boards will keep up the work that’s underway. Only 33% of directors now say boardroom diversity will improve naturally; down from 71% in 2020, which signals long overdue recognition that the problem of too little diversity in boardrooms isn’t going to solve itself.
Claire Zillman
claire.zillman@fortune.com
@clairezillman
The Broadsheet, Fortune’s newsletter for and about the world’s most powerful women, is coauthored by Kristen Bellstrom, Emma Hinchliffe, and Claire Zillman. Today’s edition was curated by Emma Hinchliffe.
ALSO IN THE HEADLINES
- Tribunal says. A World Bank tribunal found that the organization failed to protect two young employees who filed sexual harassment allegations against a high-ranking official, Rodrigo Chaves, who is now running for president of Costa Rica. The institution demoted, but didn't fire, Chaves, who denies the allegations. WSJ
- DOJ and Texas. The Justice Department asked the Supreme Court yesterday to block Texas's six-week abortion ban on an emergency basis. Hours later, 24 attorneys general weighed in, asking the Court to side with DOJ. The Supreme Court asked Texas to respond to the action by Wednesday. Fortune
- Joining in prayer. On Sunday, First Lady Jill Biden visited Brookland Baptist Church in South Carolina. Robin Jackson is the wife of the church's pastor, and the first lady credits Jackson for reviving her faith in God five years after Beau Biden died of brain cancer. Jackson offered to become Biden's "prayer partner" and, over the past two-and-a-half years, brought Biden back to her faith. Washington Post
- Reading list. When Scholastic chairman and CEO M. Richard Robinson Jr. died in June, Iole Lucchese received 53.8% of the publisher's Class A stock. The succession plan was unexpected. In her first interview since gaining control of the company where she worked for years, Lucchese says the experience was "overwhelming." New York Times
MOVERS AND SHAKERS: Wells Fargo EVP and head of home lending Kristy Fercho is the new chairman of Mortgage Bankers Association. The Mom Project hired Saana Rapakko Hunt as chief product officer and Rocki Howard as chief people and equity officer. Perfect Day CMO Allison Fowler joins the board of Copper Cow Coffee. Cambridge Associates named Melinda Wright global head of diversity, equity, and inclusion. Dawn Hudson is stepping down as CEO of the Academy of Motion Picture Arts and Sciences after her current term ends. Google VP of brand marketing Adrienne Lofton joins the board of Alaska Air Group. Melissa Harris-Perry will be the permanent host and managing editor of The Takeaway on WNYC.
IN CASE YOU MISSED IT
- Email chain. A decade before the Microsoft board received a letter from an employee detailing an affair with founder Bill Gates, leading to his departure from the board, company executives had dealt with a similar situation. Two corporate leaders told Gates to stop sending flirtatious emails to a Microsoft employee in 2008, the WSJ reports. A spokeswoman for Gates says the claims are false. WSJ
- Sinema's style. NYT fashion critic Vanessa Friedman analyzes Sen. Kyrsten Sinema—through her clothes. Anyone who observed Sinema's fashion and beauty choices, Friedman writes, could have some inkling that she might identify as a "maverick"—as seen now in her holdout status on the Biden administration's major bill. New York Times
- Chicago champions. The Chicago Sky won the franchise's first-ever WNBA championship on Sunday, beating the Phoenix Mercury 80-74. The win cemented the legacy of Candace Parker, who led the team to victory as she won what was her second championship. (Phoenix's Diana Taurasi, meanwhile, fell short of victory herself but called Parker "the most talented player I've ever been on the court with.") ESPN
ON MY RADAR
The past, present, and future of body image in America Vox
Pregnancy doesn't have to feel like a perpetual guilt trip Vice
Who doesn’t know the difference between sex and rape? The Last Duel has an answer Washington Post
PARTING WORDS
-ESPN host Malika Andrews on bonding with NBA players—and advancing her career—during the NBA bubble
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