This bank’s board is 78% female—but don’t credit DEI

Stephanie Mehta's newsletter discusses inclusive leadership, focusing on Piermont Bank's highly diverse board, where women hold 78% of the seats. This contrasts sharply with the average 30% female representation on Russell 3000 boards. Piermont's commitment to diversity stands out amidst a shifting legal landscape impacting affirmative action and diversity initiatives. The bank's diverse board has positively influenced decisions, such as supporting a permanent hybrid work schedule. Piermont's CEO, Wendy Cai-Lee, benefited from a "blank slate" when building the board, as a newly established bank. Despite facing a consent order from the FDIC, Piermont has addressed compliance concerns and hasn't faced pushback for its gender-balanced board. Other banks, such as Citigroup and Amalgamated Bank, also demonstrate significant female board representation. Experts highlight the importance of elevating women to chair or lead director roles for broader impact on company effectiveness. The newsletter encourages readers to share their company's board diversity experiences. Further resources on women in leadership are provided.