On 4 December 2020, KPMG’s Global Head of Private Equity, Robert Ohrenstein, joined a CEO Roundtable led by FCLTGlobal that brought together leaders in private equity, institutional investing, advisory services and the public markets, with the aim of identifying practical, achievable goals to improve diversity and inclusion in private equity-backed companies’ boards of directors.
Recent research, including The Long-term Habits of a Highly Effective Corporate Board (2019), shows that diversity at the board level adds meaningful long-term value for companies and their stakeholders.
Evidence on the increased effectiveness of diverse boards led Nasdaq to announce a proposed rule requiring listed companies to have one woman and one other diverse board member – or explain why they were not complying. This proposed rule follows Goldman Sachs’ decision to underwrite only initial public offerings in the US and Europe of private companies that have at least one diverse board member – which will increase to two in 2021.
While most attention has focused on public companies, the influence of private capital has grown substantially. Private equity-controlled companies significantly outnumber public companies.
The CEO Roundtable session consisted of several breakout group discussions focused on key drivers of change, including:
- Sourcing and Fostering Talent
- Investor Influence
- Actions for Private Equity companies
- Lessons from public markets
Our value and commitment
Diversity and inclusion are at the core of KPMG’s values. We are committed to advancing this important initiative, alongside our own inclusion and diversity at KPMG. We look forward to continuing our collaboration with FCLTGlobal and industry leaders to progress further the action items discussed during the session. In particular, KPMG will work with FCLTGlobal to establish diversity criteria for external board appointed advisors.
Find out more details and the key action items in FCLTGlobal’s summary of the discussion.