Trump anti-DEI campaign reduces board diversity

U.S. President Donald Trump's intensified campaign against diversity, equity, and inclusion (DEI) programs has led to a significant decline in appointments of women and racial minorities to S&P 500 boards, reaching the lowest level in over a decade. New data from Spencer Stuart shows that only 40% of new independent directors in the year ended April 30 were diverse, down from a peak of 72% in 2021-2022. The Trump administration has issued executive orders restricting DEI programs for federal contractors and tasked the United States — United States Equal Employment Opportunity Commission with rooting out alleged illegal DEI practices. Major asset managers BlackRock, Vanguard, and State Street have retreated from their previous diversity requirements for boards. IBM agreed to pay $17 million to settle allegations of discriminatory hiring practices. Companies like Goldman Sachs, Johnson & Johnson, and American Express have also scaled back diversity commitments. The shift reflects changing legal, regulatory, and political pressures, with conservative activists like Robby Starbuck celebrating the rollback. Shareholder proposals to weaken DEI have received minimal support.