More women and minorities need to serve on corporate boards, Illinois State Treasurer Michael Frerichs said. Frerichs will use his role as Illinois’ chief investment officer to encourage greater boardroom diversity. A corporate board without women and minorities typically does not reflect its employees and customers. As such, the likelihood is great for missed opportunities and growth, especially in shareholder value. “We know that diversity is good for business. We also know that change is hard, especially inside our nation’s boardrooms,” Frerichs said. “Many corporate leaders agree that diversity will benefit their operations. Our focus is to help them navigate this change.” Women occupy 20 percent of board seats of Fortune 500 companies, and minorities occupy 14 percent, according to 2016 data. Frerichs and other institutional investors are using their corporate relationships and shareholder rights to encourage boardroom change. Joining Frerichs in this endeavor are UAW Retiree Medical Benefits Trust, the Ohio Public Employees Retirement System, the School Employees Retirement System of Ohio, the SEIU Master Trust, the Sundance Family Foundation, Segal Marco Advisors, and Trinity Health.

In addition to gender, race and ethnicity, institutional investors like Frerichs encourage companies to incorporate additional factors in their board diversity policy, including diversity of skill sets, professional backgrounds, and LGBT status. “Institutional investors across the country need to continue building coalitions that push for greater board diversity,” Frerichs said. “By doing so, not only are we fulfilling our fiduciary duty and positioning ourselves for enhanced long-term returns, but we can help foster a business culture that is more attentive to the values and perspectives of the entire community.” For more information on Frerichs’ investing platform, including a description of ESG priorities, actions taken, and a searchable catalogue of proxy votes, visit www.IllinoisRaisingTheBar.com.