Only 4% of Fortune 500 companies have Asian directors

Of these 105 board directors with Asian descent, 22 live and work in Asia and hold board seats at 21 Fortune 500 companies.

The majority of 2011 Fortune 500 companies, representing America's largest and most powerful companies, have yet to fill their boards with directors from Asia Pacific.

Capturing growth and market share in high-growth Asian markets is currently at the very top of global board agendas. Yet according to research conducted by CTPartners over April to May 2011, only 4% of Fortune 500 companies have appointed directors from some of the world’s fastest growth regions to their global boards, according to a CTPartners report.

Briefly, this year’s recently announced 2011 Fortune 500 list of companies shows that:

• 105 directors of Asian descent hold an accumulated total of 121 board seats in 104 companies.
• Of these 105 board directors, 22 live and work in Asia and hold board seats at 21 Fortune 500 companies
• These 22 directors are based in China (9), Japan (5), India (4), Hong Kong (2), Singapore (1) and Taiwan (1), and include academia, entrepreneurs and senior executives. More financial institutions (6) have recruited these Asian executives than other businesses.
• The 2010 Fortune 500 companies surveyed over April 2011 also had 22 directors from Asia, there was no increase or decrease in the total number with the new list of Fortune 500 companies

Internationally, corporations have been undertaking significant expansion into Asian markets, particularly in China and India. Foreign direct investment (FDI) in China rose to a record $105.7 billion in 2010, 17.4 percent from a year earlier, according to the Ministry of Commerce. FDI in India rose to $187 billion last year, according to India’s Ministry of Commerce and Industry.

“Asia Pacific covers some 30 markets comprising over five billion people speaking over 2,000 languages. The complexities and unique characteristics of the various Asian markets pose great challenges to global boards that lack sophisticated and hands-on understanding of the Asian marketplace and customer dynamics. Cultural differences exist in markets like the US or Europe, but they are not as diverse as they are in Asia,” says Kathryn Yap, Managing Partner, CTPartners in Singapore.

“Board directors with experience in working or managing teams in the Asia Pacific will understand the talent dynamics of the current Asia Pacific marketplace well enough to recognize the unique hiring opportunities that exist in today’s business world. This is not to mention the important business and official relationships and networks they bring to the table. In addition, they will also be able to better balance global policies and processes with the specific regional needs and differences of Asia Pacific,” added Paul Aldrich, Managing Partner CTPartners in Hong Kong.