OutNEWS – Announcement Goes Public at the Exchange

I’ve been involved with OutQUORUM for 10 years, ever since KPMG helped launch this initiative as a founding sponsor.

As I look back and reflect on where we started and where we are now, it’s important to note that a decade ago the conversation around LGBTQ+ inclusion on corporate boards was virtually non-existent. I remember the first time I mentioned it to a recruiter and received a puzzled look and a question about why LGBTQ+ diversity should be disclosed or even considered. Todd and his team have tirelessly worked to change that, making the business case over and over to anyone willing to listen, offering recommendations and templates for policies, and advocating for public disclosure of board diversity metrics, on the theory that what gets measured gets done. 

Fast forward to today. The KPMG Board Leadership Center tracks public company board diversity disclosures through our KPMG Diversity Disclosure Benchmarking Tool, powered by Esgauge. We track representation. We also track companies that disclose a board matrix that includes a spot for openly LGBTQ+ directors whether or not they have an LGBTQ+ director on the board, since the disclosure itself places the question squarely in front of these companies every year. At present, 40% of companies in the Russell 3000 include this disclosure, a big change given that 98% did not even address the question publicly at all when we first started tracking three years ago.   The LGBTQ+ community offers a tremendous wealth of board-ready talent, willing and able to increase the numbers in the boardroom beyond the current 1%.

As someone who has spent over a decade focusing on board leadership and board composition, I know how important a diverse and inclusive board is as a matter of good governance.  Especially in the current political climate, visibility of LGBTQ+ professionals at the highest levels of leadership and in the boardroom could not be more important. In the interest of good governance and for the benefit of up and coming LGBTQ+ business leaders (including my own wonderful children),  I am delighted to stand with Out Leadership to continue to move the conversation forward.

Sincerely,

Susan Angele
Senior Adviser
KPMG Board Leadership Center

Here’s what you need to know this week…

#1 

Out Leadership’s OutQUORUM Board Diversity Initiative is driving dramatic change.

By 2023, 112 Fortune 500 companies, or 22.4%, had adopted LGBTQ+ inclusive board diversity policies. That was more than 4 times the number from the previous year and an incredible 56 times the number since we launched OutQUORUM. The past few years have seen a dramatic rise in LGBTQ+ inclusive board diversity policies, underscoring the impact of our work.

In 2016, we launched BoardFit in partnership with KPMG the first program designed to prepare LGBTQ+ candidates to add value to corporate boards. That same year, Out Leadership created the world’s first and largest database of board-ready LGBTQ+ candidates and worked with the four largest pension funds in the United States to expand the diversity definition of their investment mandates to include LGBTQ+ for the first time in history. In 2017, Out Leadership and KPMG published the first-ever LGBTQ+ inclusive board diversity guidelines, focused on US corporations.

In 2020, Out Leadership member firm Goldman Sachs’ CEO David Solomon announced a board diversity mandate for their IPO clients, including LGBTQ+ in their definition of board diversity. In 2021, the SEC approved the Board Diversity Rule from Nasdaq, which cited our OutQUORUM research seven times in its letter to regulators. That same year, OutQUORUM publicly mapped the board diversity policies of the entire Fortune 500. In 2023, a United States Appeals Court upheld the validity of the Nasdaq Board Diversity Rule.

Last year, OutQUORUM began analyzing the board diversity policies of the Fortune 1000, the FTSE 350, the Hang Seng Index, the NASDAQ, and the ASX 200. Our OutQUORUM research is sponsored by KPMG and Egon Zehnder.

Out Leadership’s LGBTQ+ Board Diversity Guidelines, developed through our OutQUORUM board diversity initiative, call for greater LGBTQ+ representation in corporate boardrooms. Recognizing the value of diverse leadership, these guidelines urge companies to include LGBTQ+ identity in their board diversity metrics, alongside gender and racial diversity. Since its inception, Out Leadership has expanded LGBTQ+ inclusion, influencing major corporations like Nasdaq to adopt board diversity rules.

The guidelines recommend that companies disclose board demographics annually through a matrix format, capturing data on gender, ethnicity, sexual orientation, and other identity factors. This transparency improves decision-making and drives better business outcomes, as diverse boards are proven to enhance corporate performance. Institutional investors, such as BlackRock and State Street Global Advisors, increasingly support these diversity efforts, using their voting power to push for inclusive boards​

Out Leadership’s LGBTQ+ Board Diversity Guidelines are a turnkey solution to advance LGBTQ+ equality today. All your company has to do is adopt the guidelines. Our guidelines are available for the United States, United Kingdom, Australia, and Hong Kong.

#3

Out Leadership to Announce Major Board Diversity Initiative at London Stock Exchange in November

As part of this event, we will also release our 2024 OutQUORUM report, offering the latest data on LGBTQ+ inclusion in corporate boardrooms. Last year’s findings showed a 387% increase in Fortune 500 companies with LGBTQ+ inclusive board diversity policies, but also revealed that just 0.7% of board seats are held by LGBTQ+ individuals. With these numbers in mind, this year’s event will focus on the future, driven by our groundbreaking announcement.

This moment promises to shape the conversation around diverse leadership, with corporate leaders gathering to discuss how LGBTQ+ inclusion contributes to stronger business outcomes and more effective governance. Stay tuned for what is sure to be a pivotal step forward in advancing meaningful board diversity.

Out Leadership will unveil groundbreaking new research at the Senior Leader Research Launch and Networking Reception on Thursday, November 21st, as part of the second installment of this year’s Return on Equality™ Summit for Corporate Impact. This exclusive in-person event will showcase critical insights on board diversity and LGBTQ+ representation in corporate governance. Senior executives will have the first look at data that promises to shape the future of inclusive leadership in boardrooms worldwide.

Running from November 18-21, 2024, the summit brings together LGBTQ+ senior executives and corporate leaders to explore the future of board diversity. It kicks off on Monday, November 18th, with a virtual session, “Board Diversity: The Impact of LGBTQ+ Representation at the Top,” discussing the business benefits of inclusive leadership.

On Thursday, November 21st, participants can attend OutQUORUM’s Board Fit Workshop, a hybrid session aimed at preparing senior executives for corporate board roles. This interactive workshop, part of OutQUORUM’s talent accelerator program, equips LGBTQ+ leaders with the tools needed for board positions.

With a combination of virtual and in-person sessions, the summit offers a space for leaders to engage with key research and strategies for advancing LGBTQ+ inclusion in corporate leadership.

#5

Select spots remain for the Canada Summit.
Register now!

Our first ever Canada Summit starts in just over a week! Make sure to register now.
For the first time in Out Leadership history we are taking our iconic summit offerings to Toronto. After last year’s enthusiastic response to the OutNEXT workshop and reception, Out Leadership is thrilled to collaborate again with RBC to bring you a complete Summit with Out Leadership’s exclusive signature events listed below. If your company is based in Toronto or has offices there, be sure to sign up.

Allyship Workshop
Tuesday, 29 October, 2024
8:30-10:00 AM EDT

Join us for an exclusive workshop on LGBTQ+ allyship, inspired by the insights from Out Leadership’s groundbreaking AllyUp™ research.

VIP Reception
Wednesday, 29 October, 2024
5:30-8:30 PM EDT

This exclusive reception will bring together LGBTQ+ and allied leaders to discuss critical topics like marriage equality, trans rights, LGBTQ+ talent, the role of OutWOMEN+ in the workplace, ESG strategies, and our latest LGBTQ+ board diversity research.

OutWOMEN+ Breakfast 
Wednesday, 30 October, 2024
8:30-10:00 AM EDT

Join Out Leadership and TD for an exciting networking reception featuring a vibrant gathering of OutWOMEN+. This event offers the perfect opportunity to connect with LGBTQ+ professionals in a lively, welcoming atmosphere.

OutNEXT Salon
Wednesday, 30 October, 2024
1:30 PM-8:00 PM EDT

You’re invited to an exclusive half-day OutNEXT Salon, where emerging LGBTQ+ leaders from across Canada can come together to learn, connect, and grow. OutNEXT, proudly sponsored by RBC Capital Markets and Citi, is the premier global talent program designed specifically for LGBTQ+ professionals.

Member allocation: 3-5 per member company

We have a few spots remaining for some of the events, which are reserved exclusively for our member firms and their invited client guests. If you would like to join, please register below. (We do have a waiting list for partner organizations as well as non-member firms who we will invite if those spots are not claimed.)