US S&P 500 corporate DEI shifts

Corporate diversity, equity, and inclusion (DEI) initiatives in the S&P 500 are facing significant shifts due to political and regulatory pressures. Research indicates that appointments of women and racial minorities to S&P 500 boards have fallen to their lowest levels since 2014, dropping from a peak of 72% in 2021–2022 to 40% of new independent directors in the year ending April 30, 2026. This decline is attributed to political pressure following a January 2025 executive order directing federal agencies to investigate and compel the elimination of DEI programs.

Some corporations dismantled their initiatives due to fears of regulatory repercussions, such as hostile tax auditing or unfavorable treatment from the Federal Trade Commission. While some companies faced consumer boycotts and declining foot traffic after dismantling DEI infrastructure, such as Target Corporation, others like Costco, Apple, and Delta Air Lines maintained their commitments.

A study co-authored by Jacob Grumbach of the University of California, Berkeley, suggests that maintaining DEI programs has no significant impact on a company’s revenue or stock price. The research indicates that firms resisting the executive order performed similarly to those complying in terms of market returns, suggesting that maintaining these programs within legal limits does not appear to cause financial harm.