“The best decisions are made with a diverse collection of ideas and thoughts and perspectives, and every company benefits from having that,' said Bonnie Gwin of Heidrick & Struggles.
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As companies look to shore up their futures, having a board with diverse skills, backgrounds and experiences becomes more important, experts agreed. Hariton said that today’s “well-run” companies are “trying to mirror their populations. In beauty, “there’s an argument” that boards should include more than 50 percent women, she said.
The least diverse board from the Equilar beauty analysis is Inter Parfums, which is 10 percent women with zero ethnic diversity. LVMH’s board also has no ethnic diversity, Equilar’s analysis showed, though it does have 44 percent women. Beiersdorf, Coty and L’Oréal’s boards also have little representation for people of color, and ranked in the single digits, percentage wise, in Equilar’s analysis.
“When we were trying to figure out the women, it came quite easily, it wasn’t difficult,” Wong said. Olaplex’s customers and employees are overwhelmingly women, Wong said. “We wanted the board to reflect that.” “What really surprised me was these two lists — independently sourced — did not have any overlap. There were no same names on both lists. I was looking, but not looking so, so hard, and I found 20 candidates who are capable and qualified … I use that as an example to say, it’s very possible,” said Lauder, of identifying qualified female candidates.
“The best boards think about this as a set of strategic skills and experiences and voices and they do planned board succession over time. They are continually thinking about, ‘what do we need to add in to meet this moment and to meet the coming moments,’” Gwin said. Several female beauty executives — with and without CEO titles — currently hold board seats. For example, Tracey Travis, executive vice president and chief financial officer of the Estée Lauder Cos.
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