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The DEI Backlash: How Anti-Inclusion Efforts Are Silencing LGBTQ+ Voices in Corporate America



Five years ago, a nonbinary executive of color was proudly appointed to the board of a major corporation. The company not only recognized their professional achievements but also celebrated their gender identity—a milestone for both the executive and the broader LGBTQ+ community.

“My company was proud to identify me as nonbinary,” the executive told USA TODAY. “It gave other employees the confidence to be themselves.” But amid growing political attacks on diversity, equity, and inclusion (DEI), that same executive no longer feels safe. “Now, it’s dangerous to be who you are,” they said. “I’ve always been out, but today I feel particularly vulnerable.”

DEI in Retreat

Once embraced, DEI initiatives are now under intense scrutiny. With anti-DEI sentiment gaining traction in Washington and Republican-led states, corporations are retreating from vocal support for LGBTQ+ rights. High-profile controversies involving brands like Bud Light and Target have sparked boycotts and fueled political backlash, prompting some companies to downplay their DEI efforts.

Before former President Donald Trump’s executive order mandating that federal agencies recognize only two genders—male and female—the nonbinary board member began to sense a chilling shift in corporate culture. They chose to stop self-identifying to protect their position and safety.

Myrna Soto, a veteran board member who is Latina and gay, voiced concern about the growing silence. “The weaponization of DEI is real,” she said. “More people are going to retreat into the ‘I’m not going to tell anybody’ camp. That’s going to set us back.”

Representation Under Threat

While nearly 1 in 10 U.S. adults—and nearly 25% of Gen Z—identify as LGBTQ+, their representation in corporate leadership remains dismal. According to DiversIQ, fewer than a dozen openly LGBTQ+ leaders hold top roles among the country’s 1,000 largest corporations. Only two are transgender.

LGBTQ+ leaders make up roughly 1% of board seats in the S&P 500—a figure that has remained stagnant for years. Outside industries like fashion and entertainment, openly LGBTQ+ executives are scarce, particularly among people of color.

Despite their $1.4 trillion in annual spending power, LGBTQ+ individuals remain significantly underrepresented in the upper ranks of corporate America. Barriers include persistent workplace discrimination, fear of backlash, and the mental and professional toll of being openly queer in an often-hostile environment.

According to Coqual, a think tank promoting workplace inclusion, one-third of LGBTQ+ professionals in the U.S. are not out at work. Globally, fewer than half (43%) say they feel safe being open about their identity on the job.

Progress Reversed

Following the 2020 murder of George Floyd, corporations moved quickly to diversify leadership—though LGBTQ+ inclusion was often secondary. New reporting rules, such as those implemented by Nasdaq, required public companies to disclose board diversity, including sexual orientation and gender identity.

By 2024, over 30% of companies on the S&P 1500 were reporting LGBTQ+ board representation. But that progress was short-lived. In December 2024, the Nasdaq diversity rules were repealed, and disclosures dropped sharply to just 9% in 2025.

“That was the only benchmark we had,” said Fabrice Houdart, founder of the Association of LGBTQ+ Corporate Directors. “Without transparency, we can’t see if we’re making progress.”

Worse still, some major companies, under pressure from anti-DEI activists, have distanced themselves from LGBTQ+ advocacy organizations like the Human Rights Campaign and removed themselves from its equality index.

Houdart warns that companies may now shy away from appointing openly LGBTQ+ leaders—and if they do, they’ll likely avoid publicizing it. “These are the people shaping the future,” he said. “Excluding LGBTQ+ voices guarantees a future of continued exclusion.”

Leaders Speak Out

Despite the setbacks, some LGBTQ+ executives remain determined to hold the line and mentor others rising through the ranks.

Torrence Boone, a Black executive and Vice President at Google, came out at 18 and has never hidden who he is. Raised in a low-income Baltimore neighborhood, Boone went on to graduate from Stanford and Harvard. He climbed the corporate ladder by delivering results and seeking out inclusive, merit-based workplaces.

“Excellence is the strongest ballast against bias,” Boone said. He now serves on the board of Macy’s and continues to advocate for representation. “This backlash has lit a fire. The best companies will continue to recruit and develop diverse talent.”

Rob Smith, 59, came out at 23 and later founded The Phluid Project, a gender-free fashion brand. He believes corporate America won’t reverse course entirely, despite today’s political climate.

“I don’t think we’ll move forward at the same pace,” Smith said. “But I also don’t think we’re going backward. The community is uniting and building a coalition of resistance. We’ve done it before.”

Conclusion

While the path to inclusivity in corporate leadership is facing new challenges, many LGBTQ+ executives remain resilient. They are determined to protect the hard-won progress of recent years and ensure that future generations of diverse leaders can thrive openly and authentically.

As one executive put it: “This is not just about identity—it’s about leadership, visibility, and fairness. And we’re not done fighting.”



Source: usatoday.com

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