Diversity is increasingly deemed of great importance to ensure a full range of perspectives and capabilities. Among the types of diversity is gender. In 2019, for the first time, every S&P 500 board had at least one female director and female directors exceeded 25 percent of the board. Ethnic diversity is also deemed important. As of 2019, ­thirteen percent of S&P 500 directors were from minority groups, as were 20 percent of all new board members. However, the most glaring lack of diversity may be age. Only 6 percent of S&P 500 directors are under the age of 50. The average director is 63, and 21 percent are at least 70. Successful navigation through this period of great change will require the rapid adoption and exploitation of evolving technologies, a dedication to the long-term view, and a mindset capable of identifying and responding to the challenges and opportunities of climate change and other major ESG issues. Bringing a younger perspective into the boardroom would seem imperative. 

Questions 

1. Discuss the value of diversity, in its broadest sense, on boards of directors. 

2. You are forming a new corporation that will be publicly traded in the U.S. It will operate a fleet of huge tankers that will transport crude oil from sources in 11 countries in Asia and Africa to refineries in Europe and North America. What board composition would be appropriate for this company? Explain.