Everyone knows by now that CHROs are the rising stars of the C-suite. So it should come as no surprise that HR leaders are making gains in the boardroom as well.
The number of board directors at Russell 3000 companies with CHRO experience increased from 0.9% in 2022 to 1.1% in 2023, according to a new report from Equilar, an executive intelligence firm. Those numbers are still small, but show a 22.2% increase.
“It’s clear that companies value the presence of HR leaders and the expertise they bring to the table, including DEI, talent development and advancing corporate culture,” Amit Batish, Equilar’s senior director of content, tells Fortune.
But the picture of CHRO boardroom gains gets a bit fuzzier when it comes to appointing first-time board members. The number of new directors with CHRO experience actually declined between 2022 and 2023, decreasing from 2.6% to 1.8%—a 30.8% drop.
Equilar is careful to avoid any direct cause and effect explanation for that kind of discrepancy. But Batish does note that the drop in first-time board directors with CHRO experience coincides with a pullback in HR spending, DEI, and corporate culture initiatives.
“While it would be speculative to directly link the slowdown in appointing directors with CHRO experience to these developments, it’s certainly a trend worth monitoring,” he writes.
Notably, this survey was taken before the DEI backlash we’ve witnessed in 2024, in which companies including Ford, Lowe’s, John Deere, Harley Davidson, Jack Daniel’s, and Tractor Supply have walked back their inclusion initiatives. So what should we expect moving forward? “We could see a slowdown in CHRO board appointments,” says Batish. But he adds that “it’s too early to tell, and it’s a potential trend we’ll keep an eye on in the near future.”
And considering the growth we’ve seen for the CHRO role over the past few years, he wouldn’t be surprised if the number of CHROs on boards continued on an upward trajectory, especially considering how important an emphasis on employees, talent development, and culture have become.
“Boards are aware that as these issues become more prominent, they need that expertise in the boardroom in order to stay ahead of the evolving landscape,” he says. “Therefore, it would not be surprising to see the percentage of directors with CHRO experience to continuously grow over the next 5 to 10 years.”
Azure Gilman
azure.gilman@fortune.com
