Warner Music Group Set to Go Public With a Board Lacking in Diversity

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Warner Music Group Set to Go Public With a Board Lacking in Diversity
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Warner Music Group will join a slew of publicly-traded music companies with a glaring lack of diversity on their executive boards

For many corporate boards, the lack of turnover and election processes can present obstacles for increasing diversity. According to WMG's IPO, each board director will hold office until his or her successor has been "duly elected and qualified, or until his or her earlier death, resignation or removal." And when new directorselected, they are likely to have served in executive leadership positions, a pool that often excludes women and minorities.

This is beginning to ever-so-slightly change. When WMG goes public, it will join the S&P 500, where all companies have at least one female board member, as of July. And the percentage of women joining boards reached a new high in 2019, with 45% of new Russell 3000 stock market index board seats filled by women, according to a May analysis of board diversity trends from ISS Analytics, the research arm of Institutional Shareholder Services.

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