The analysis of 1,641 U.S.-based and publicly traded companies between 2016 and 2022 strongly indicates that a diversity benefit exists and that companies are incentivized to be attentive and proactive in capturing it. The key findings of this research are as follows:

• There is a diversity benefit. Across the full data set, higher percentages of BIPOC (non-White) management are positively correlated with increases in enterprise value growth rate, free cash flow per share, income after tax, long-term growth mean, 10-year price change, mean return on equity (ROE), return on invested capital (ROIC), and 10-year total revenue compound annual growth rate (CAGR).

• All statistically significant relationships between BIPOC management and financial performance were positive in the Communication Services, Consumer Discretionary, Consumer Staples, Financials, Health Care, and Information Technology sectors.

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