Tracking the State of Asian Corporate Board Representation: a New Report by Ascend & KPMG
NEW YORK, April 17, 2024 / PRNewswire
More than half of Fortune 1000 boards still did not include a single Asian board member in 2023, according to a new study on the evolving state of Asian representation at the highest levels of business by Ascend - a global network of business professionals and executives working to advance Asian and Pacific Islander (API) inclusion in the workplace - and audit, tax and advisory firm KPMG LLP.
Ascend Foundation, Ascend Pinnacle and the KPMG Board Leadership Center (BLC) launched their initial study of Asian* directors on public Fortune 1000 boards in 2020 and this current report reflects incremental progress.
While the overall percentage of board seats held by Asian executives remains low (6.9%), it represents an improvement from 2020, when only 4.1% of the board seats studied were held by Asians. Currently, 46% of Fortune 1000 boards include an API board member, up from just 31% in 2020. However, at 54% of the Fortune 1000 companies, many APIs still experience an invisible ceiling that keeps them out of the top echelons of the corporate world.
Asians remain the fastest-growing demographic in the US, with a population growth rate of 103% between 2020 and 2023. Asian-American buying power grew by 111% between 2010 and 2020. And with approximately 59% of Asian-Americans in possession of a college degree (compared with 38% of the general population), companies hoping to expand their reach would do well to focus on developing, supporting, and advancing API talent into their C-suites and corporate boardrooms. As Asian buying power grows, forward-thinking organizations will need leaders who are in touch with the experiences, values, and priorities of the API community.
"In the past ten years alone, we've made visible strides in terms of awareness," says Anna Mok, President of Ascend, "but when we look at the top positions, like board seats and the C-suite, we see Pan-Asian presence drop dramatically. Companies still have a long way to go to harness the potential of their API workforce and the market."
"As business leaders develop their strategies and work to attract and retain talent, customers, and suppliers to drive growth, it is imperative that there are diverse voices in the boardroom," says Susan M. Angele, KPMG Board Leadership Center Senior Advisor. "The API community offers important lenses on business and a large pool of boardroom talent. The data in our report promotes visibility, and visibility will help advance inclusion in America's corporate boardrooms."
The full report is available here.
About Ascend Pinnacle and Ascend Foundation
Ascend Pinnacle is part of the broader organization known as Ascend and Ascend Foundation, the largest global network advancing Asian and Pacific Islander (API) professionals in the workplace and corporate boardrooms. Ascend Pinnacle works to establish and engage a network of Pan-Asian corporate board directors who have a common interest in building inclusive boardrooms, mentoring the next generation of senior executives, and elevating awareness of Pan-Asian contributions in corporate governance. The Ascend Foundation is a 501(c)(3) organization that is focused on research, cultivating DEI best practices, and advocating for greater awareness of the challenges facing the API community at work and beyond. In partnership with leading business organizations, the Foundation launches initiatives like the 5-Point Action Agenda, provides student scholarships, and publishes noteworthy reports that aim to increase recognition of API leadership.
For more information, please contact communications@ascendleadership.org.
About KPMG
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 143 countries and territories and has more than 273,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.
About the KPMG Board Leadership Center
The KPMG Board Leadership Center (BLC) champions outstanding governance to drive long term value and enhance stakeholder confidence. Through an array of insights, perspectives, and programs, the BLC—which includes the KPMG Audit Committee Institute and close collaboration with other leading director organizations—promotes continuous education and improvement of public and private company governance. BLC engages with directors and business leaders on the critical issues driving board agendas—from strategy, risk, talent and ESG to data governance, audit quality, proxy trends, and more. Learn more at kpmg.com/us/blc.
Contact: Elizabeth Lynch, elizabethlynch@kpmg.com
* We use the term "Asian" here to include all people of Asian, Native Hawaiian, or Pacific Islander ancestry, who trace their origins to the original peoples of the Far East, Southeast Asia, the Indian subcontinent, Hawaii, Guam, Samoa, and Pacific Island geographic regions.
SOURCE Ascend Foundation
