FEATURE STORY

Yesterday, Bloomberg Businessweek published an in-depth story, “Boardrooms Need Diversity, Yet Latinos Are Fighting for Seats,” about the dearth of Latinos in America’s corporate boardrooms and the efforts of the Latino Corporate Directors Association (LCDA), along with allies, to “boost the representation of Latinos in the boardrooms of a nation where they're already the largest ethnic group."

Below are highlights from the article; read the full story here: http://bloom.bg/3os9Cno

As framed by the article, “Latinos have been one of the most underrepresented groups, particularly in California, among the most aggressive jurisdictions in trying to increase diversity in corporations. Hispanics make up almost 40% of the state’s population but hold just 2.1% of board seats at companies based there, according to data gathered by LCDA and corporate data provider Equilar.”

And while significant efforts are building by large institutional investors, pension funds, ISS, Nasdaq, among others, “LCDA is working to make sure Latinos don’t get left behind.”

In September the group joined with organizations including the U.S. Hispanic Chamber of Commerce, the League of United Latin American Citizens, [MALDEF, ALPFA, NHMC,] and UnidosUS, the largest Hispanic nonprofit advocacy group, to launch Latino Voices for Boardroom Equity [representation at decision-making tables is a priority for the Latino community.]

The message is simple: Given “the economic strength” of the Hispanic community, it is in the “interest of your stakeholders and shareholders” to appoint a Latino or Latina as a director. The request is accompanied by data highlighting how Latinos contributed an estimated $2.6 trillion to U.S. gross domestic product in 2018 and have consistently been increasing their consumption spending over the past decade. Latinos are “a vibrant and growing employee and customer base,” the group said—not only the biggest minority but also one that’s adding one million people each year.

These types of efforts are just what might be needed to create more diverse boards, according to Institutional Shareholder Services (ISS), which provides investors with governance and diversity data on companies. Brett Miller, ISS’s head of data solutions for ESG, believes California’s law will result in an uptick in women, Black, and Latino directors. But it might not be a consistent increase.

ISS will start reporting this year on the racial and ethnic diversity among companies’ directors and chief executives. Next year it will begin recommending votes against boards that aren’t diverse. “But if you don’t understand your stakeholders, whether that’s your community or your customers, it’s going to affect your bottom line,” Miller says.

Yet Esther Aguilera, chief executive officer of the Latino Corporate Directors Association (LCDA), knows that many companies view diversity as simply a numbers game, with some failing to make sure that a range of different minorities is considered when a director slot gets filled. “Some companies might want to say that they have checked the box and they are done,” says Aguilera. “That’s where our effort comes in.”

During the last four months of 2020, the group sent about 240 letters to publicly traded companies. It expects to send 400 more through January. The Latino Voices for Boardroom Equity campaign asked for a meeting with each company’s CEO, or a representative of its board. With its first round of letters, the group wanted to make a statement. It selected nine companies from across a wide swath of industries with strong Latino customer bases. Three of those businesses also profit off Latino culture and serve as gathering places for the community: restaurant chains El Pollo Loco, Del Taco, and Chipotle. But among the trio’s 25 board members, not a single one is Latino.

>Read More: http://bloom.bg/3os9Cno

BOARD APPOINTMENTS

Congratulations to Monica Lozano on her appointment to Apple’s Board of Directors

LCDA and the Latino Voices for Boardroom Equity congratulate

Apple's Board in recognizing the business and social imperative of Latino/a board leadership.

Lozano commented, “I’ve always admired Apple’s commitment to the notion that technology, at its best, should empower all people to improve their lives and build a better world. I look forward to working with Tim, Art, and the other board members to help Apple carry those values forward and build on a rich and productive history.”

Learn More: http://apple.co/35eZ0Av

Over the last two months, we have seen an uptick in the number of Latino board appointments. Visit the LCDA LinkedIn page for 20 more board-appointment features.

LCDA WELCOMES OUR NEWEST MEMBERS