Trump’s rollback of DEI is transforming who runs America’s biggest companies, study finds

Trump’s rollback of DEI is transforming who runs America’s biggest companies, study finds During Trump’s second term, appointments of women and racial minorities to S&P 500 boards have dropped to their lowest level in more than a decade - Bookmark - CommentsGo to comments As President Donald Trump ramps up his campaign against diversity, equity and inclusion programs, the number of women and racial minorities being appointed to S&P 500 corporate boards has fallen to its lowest level in more than a decade, raising concerns that years of progress in boardroom diversity could begin to unravel. New research from executive search firm Spencer Stuart, along with interviews by Reuters with board recruiters, investors and human resources experts, points to a sharp shift in hiring trends as companies respond to changing political, legal and business pressures. The report comes after a series of Trump administration moves targeting DEI initiatives. At the same time, major institutional investors that once pushed companies to diversify their boards have scaled back those efforts, while court rulings have prompted many corporations to rethink diversity policies. Spencer Stuart found that just 40% of the 364 new independent directors appointed to S&P 500 boards during the year ending April 30 were women or racial minorities. That's the lowest share since 2014, when diverse candidates accounted for 39% of new appointments. The figure is down sharply from a peak of 72% in 2021 and 2022. Overall board diversity remains close to record highs, with women and racial minorities holding 49.3% of S&P 500 board seats, only slightly below the record 49.6% reached in 2024 and 2025. But recruiters warn those numbers reflect appointments made in recent years following the #MeToo and Black Lives Matter movements. If current hiring trends continue, they say those gains could quickly erode. George Anderson, co-leader of Spencer Stuart's North American Board Advisory Practice, said companies are increasingly prioritizing current and former CEOs, who made up 37% of new directors this year — the highest proportion in 15 years. Because the CEO pipeline remains less diverse, that shift has reduced the number of women and minority candidates joining boards. Companies are also becoming less willing to publicly cite diversity when recruiting directors. According to human resources analytics firm PeopleReturn, only 12% of S&P 500 companies now disclose using diversity criteria in board appointments, down from 23% in 2025 and 48% in 2024. Supporters argue diversity initiatives expand opportunities for historically underrepresented groups while improving corporate governance and decision-making. Trump and other critics contend such policies discriminate against white people and men and undermine merit-based hiring. Kristin Hull, chief investment officer at Nia Impact Capital, said the trend marks a return to male-dominated leadership. "We were making such progress," Hull said. "Now the bro culture is alive and well." Conservative activist Robby Starbuck, who has campaigned against corporate DEI initiatives, welcomed the shift. "They were focused on all the wrong things, and it shows in their earnings," Starbuck said. White House spokeswoman Allison Schuster defended the administration's approach, saying Trump "was resoundingly elected with a mandate to end divisive, racist policies and restore merit and efficiency." The Trump administration has directed the Equal Employment Opportunity Commission to investigate what it calls illegal DEI practices, arguing some programs gave preferential treatment based on race or gender. Many companies had already begun scaling back diversity efforts after the Supreme Court's 2023 ruling ending race-conscious college admissions sparked broader legal challenges to corporate DEI policies. Trump later signed executive orders restricting certain diversity programs among federal contractors and within the federal government, declaring that "our country will be woke no longer." IBM agreed in April to pay $17 million to resolve allegations that it violated Trump's anti-DEI directives by favoring diverse candidates in hiring. The company denied wrongdoing as part of the settlement. Despite the corporate pullback, shareholder support for proposals aimed at weakening DEI remains limited. Conservative-backed resolutions targeting diversity programs received an average of just 1.5% support during this year's proxy season. Recruiters told Reuters companies are placing less emphasis on diversity when filling both board seats and executive roles. Firms that once championed diversity, including Goldman Sachs, have rolled back some of their policies. Goldman last year dropped its requirement that companies going public have at least two diverse board members, citing legal developments, although the bank said it still believes diversity benefits its business. Meanwhile, major asset managers including BlackRock, Vanguard and State Street have softened or eliminated previous expectations that companies maintain diverse boards, reducing pressure on corporate America to prioritize diversity in board appointments. The trend extends beyond the boardroom. Spencer Stuart found women and racial minorities accounted for about 22% of S&P 500 CEOs last year, down slightly from 23% the previous year. "Today we hear more about 'the best person,'" said executive recruiter Jeff Christian, CEO of Christian & Timbers. "There's less currency for being a person of color than there once was." 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