After putting herself through college, including work as a bartender, she took a job with Electronic Data Systems Corporation. Equal Employment Opportunity Commission. However, in response to a rebellion from activist investors at Bed Bath and Beyond who were unhappy with the performance of the company, she was one of five new independent members who agreed to go on that Board. About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping the world. In 2008 he became the company's CEO. Over the complete history of the Fortune 500, which dates back to 1999, there have only been a total of 18 Black CEOs leading America's Fortune 500 companies. [16] Ramon A. Gutierrez. So, too, is skin color important, especially for Latinx. The Rise and Fall of Labor Unions In The U.S. Interlocking Directorates in the Corporate Community, The Power Elite's Foreign Policy in WWII & Vietnam, The Rise and Fall of Diversity at the Top, 2005-2015, Can Corporate Power Be Controlled? But despite decades of work on diversity in corporate America, progress has been limited and has even reversed at the executive level: Today there are only four black Fortune 500 CEOs, a drop from . A 2018 Boston Consulting Group study suggests that greater diversity on leadership teams improves financial performance and innovation. As the nation gets less white and more diverse, corporate America will need to adapt to better serve that changing market. In 2021, 6.9% of companies were led by female CEOs, and 15.1% had female CFOs. More than four-in-ten multiracial Black people (44%) live in households that are headed by married couples as of 2019. Yet corporate America's top ranks look nothing like the country they serve. A separate look at the New CEOs for each group reveals very different patterns between the groups, and in some cases, within the groups. There were twice as many white women Fortune 500 CEOs in 2020 as there were in 2010. Olajide (Jide) Abayomi was born in Ibadan, Nigeria. [22] Fifteen years later, in a book about the intense pressure applied by parents from privileged families to get their children into elite colleges, Lois Weis, Kristin Cipollone, and Heather Jenkins, applied the concept of flexible immigrants to elite boarding schools, arguing that international students from wealthy backgrounds in their home countries might be outsiders in some ways, but ultimately they fit into prep school culture because "they are fundamentally 'class insiders'" (p. Born in India, he is the son of a general in the Indian army who moved around a lot during Banga's childhood. More than 4 million members of this population were born outside of the U.S., meaning 10% of single-race Black people are foreign born. Even with this hefty compensation package, Williams was paid much less than many other CEOs. There is no shortage of minority candidates who can compete for these jobs, Dick Parsons, former CEO of Time Warner and chairman of Citigroup, told USA Today. Last month,Jide Zeitlinstepped downas CEO of Tapestry, which owns the Coach and Kate Spade fashion brands, leaving four Black CEOs in the Fortune 500, none of them women, down fromseven in 2014, according to Fortune Media. The study was funded by Disney, Pfizer and other major corporate players. As is the case when Fortune boards choose Asian CEOs, when they choose Latinx CEOs they are likely to select men and women who have grown up in the global elite. When, 18 months later, Arnold was posted to Pakistan, Arnold and Marian offered to take five-year-old Jide with them. Let's dive in and take a closer look at these leading Black American CEOs. https://lnkd.in/gPMk7DDh Two weeks after she resigned as CEO, the company declared bankruptcy. Nike, via YouTube. The immigrant groups from a wide range of Asian countries included under that label do not share a common language, national heritage, or immigration pattern. The numbers aren't much better on the rungs of the ladder leading to that role. She stayed with Xerox, working her way up through the management ranks. He earned both his Bachelor of Science in business administration and his Master of Arts in communication from Marquette University. For decades, corporate America has failedto hire, promote and fairly pay Black men and women, stalling many from rising above middle management, says Ella L.J. 2015. Florida comes in a close second with 3.8 million, and Georgia comes in third, with 3.6 million. Survey Reveals Top Concerns of HR Executives in America, Page 1. (+1) 202-857-8562 | Fax Since then, this number rose by 5% to 41 as of 2021. At the big five tech companies last yearAmazon, Apple, Facebook, Google owner Alphabet and Microsoft there was only one Black executive listed on proxy statements. Andrea Jung, a Chinese American born in Canada, was the CEO of Avon from 1999 through 2012 (Avon was #308 in 1999, and #234 in 2012). Sometimes Jide's mother brought her little boy with her, and he hit it off with the Zeitlins' daughter who was about the same age. Foreign born refers to persons born outside of the United States to parents neither of whom was a U.S. citizen. ISS 2021 Proxy Voting Updates Address Racial, Ethnic, Gender Diversity., BoardProspects. A third identify as unaffiliated (33%), while smaller shares identify as other Christian denominations (2%) or follow non-Christian faiths (6%). San Francisco, CA pays an annual average wage of $177,036, the highest in the US. The reality is that we have to get past the talking, said Smith, co-author of Our Separate Ways," which examinesthe career trajectories of Black and white female managers. When Don Thompson assumes his new title as CEO of McDonald's. Like Geisha Williams, and like so many CEOs who leave their jobs for one reason or another, she was given a nice parting gift, in her case a golden parachute of $5.4 million with the likelihood of additional bonuses as part of her severance.[14]. Since then, this number rose by 4% to 41 as of 2021. Roughly four-in-ten Black Hispanic people (42%) live in households headed by married couples in 2019. Copyright 2022 CBS Interactive Inc. All rights reserved. [12] At least one person claims that Ursula Burns should count as a Latina because her mother was Panamanian. This marks an increase of 21% over 2000, when the population was roughly 33.7 million. What matters is sustained action.. And thats going to be hard," hesaid. Looking at income another way, almost half of households with a multiracial Black householder (47%) make less than $50,000, and 52% make that sum or more. White men may have lost power, but they continue to be the dominant group in the corporate elite they held 96.4% of the Fortune 500 CEO positions in 2000, and they held 85.8% in 2020. Consider the five white women who first became CEOs of companies that appeared on the Fortune 2020 list (some were appointed in late 2019 or during 2020, and others had been CEOs for a while but their companies first made the list in 2020). Again, this yielded information on 22 of these 25 companies, this time for 200 people. The other African-American woman, Mary Winston, served as interim CEO of Bed Bath and Beyond for less than a year, from May 2019 through November 2019 (#258 in 2019). Fifteen have MBA degrees, four have PhD's (from Rice, UVA, Cal Tech, and the University of Valencia), two have law degrees, and one has a medical degree. Roughly a third (32%) of the single-race Black population in the U.S. were either members of Gen Z or age 6 or younger, meaning they were 22 or younger in 2019. [30], As part of the research for the 2011 edition of The New CEOs, we looked up the leadership teams of a sample of companies on the Fortune list, companies selected from throughout the Fortune 500, because we knew from previous research that the larger companies were more likely to have promoted diversity within their ranks than the smaller companies. Other top metropolitan areas for this subgroup include Washington D.C., Los Angeles and Philadelphia. Black Americans are diverse. Before looking at the patterns for each of the groups who make up the New CEOs, it is helpful to keep the larger picture in mind by noting that it is still the case that almost 90% of the Fortune 500 CEOs are white males. Figure 1: New CEOs by year: 2000 through January 2014 After five years in Pakistan, and three years in the Philippines, Marian was accepted into a PhD program at MIT in biochemistry, and Jide moved with the family to Cambridge, MA. The goal of DEI is to hire a diverse workforce, give workers a voice, and include workers in business happenings. Almost all of those for whom I could find information were, or had been, married, and most had children. The number of women in the House rose from 101 in 2019 to 118 in 2021 (that is, from 23.2% to 27.1%), and in the Senate it dropped from 26 to 24. Broader analysis shows that more than half (54%) of Black households earn less than $50,000, while 46% make $50,000 or more. It is notable that of the 17 Asian-Americans who have become Fortune 500 CEOs since 2010, only 4 have been East Asian, and 11 have been South Asian. One reason black professionals are struggling to scale the corporate ladder, according to the study: a lack of face time with senior leaders, which hinders building personal relationships with those within a company who oversee promotions. If we take a closer look at those we consider part of the global elite, and also factor in those born in the USA but whose parents were from ruling class families in China or Cuba, then class background becomes even more apparent as a predictor of who makes it to the top of the corporate world. Arnold and Marian wanted their daughter to have someone to play with, and they liked Jide and saw how bright he was, so they suggested to Jide's biological mother that Jide live with them and attend the same school as their daughter. (Last year, after the 2019 list was published, Mary Winston served as interim CEO of Bed Bath & Beyond for several months.) We have called them "The New CEOs" to emphasize that they are not, like the old CEOs, white males. While 41 is a record, it still means that just over 8% of Fortune 500 companies have women at the helm. One of the African-American men, James Bell at Boeing in 2005, was an interim appointment who served for less than a year (#25 in 2005). The father of Josue Robles, Jr. (the CEO of United Services Automobile Association from 2007 to 2015, #122 in 2015) came to the USA from Puerto Rico with only a fourth grade education and worked in steel mills for 35 years (Robles' mother had a ninth-grade education). The first woman to lead a big Wall Street bank, she, too is a flexible immigrant (and she is married to a flexible immigrant and a third culture kid, Alberto Piedra, Jr., a Cuban-born banker whose father left Havana in 1959 and became the U. S. ambassador to Guatemala, so he spent some of his childhood in Havana, some in Washington, D.C., and some in Guatemala). 100-101. Greater equity does more than keep stakeholders happyit can also improve the bottom line, according to a body of research on the subject. After he earned a BA from Brown University, he worked for a decade or so as an investment banker, and then became the CEO of Expedia, an online travel and meta-search engine, and by 2016 he was one of the highest paid CEOs in the country (he also received more than $90 million in stock options that year). In these fact sheets, we refer to several generations. Among all U.S.. Doug Ducey stacks containers at border, Killer Mike: "I believe in being able to do it all", Blacks miss out on top jobs in U.S. companies, New study suggests there aren't enough blacks in top executive positions, Black female entrepreneurs look for ways to improve diversity in Silicon Valley. Building a, Left and Right in Thinking, Personality, and Politics, Alternative Theories: Pluralism, State Autonomy, Elite Theory, Marxism, C. Wright Mills, Floyd Hunter, and 50 Years of Power Structure Research, Teaching about Corporate Power (London et al. If you are still running a plantation internally, or if you are still running your company like the 1960s, consider this your wake-up call, she said. The annual list ranks 500 of America's largest companies, which generated $13.8 trillion in revenue, or two-thirds of the U.S. economy. If a CEO does not value diversity, if there is no accountability, there will be no meeting of internal goals and there will be no change, Owens said. 2014. "The Fortune 500 Just Lost its Second Latina CEO," Fierce Boss Ladies, January 16; https://fierce.wearemitu.com/fierce-boss-ladies/fortune-500-lost-second-latina-ceo-geisha-williams/, [13] Michael Hiltzik. Georgia and Florida are home to the next largest populations of this population, with roughly 3.3 million single-race Black people each. She attended the prestigious Hackley School and received her BA from UVA. He was born in Iran to a very wealthy family that owned a diversified conglomerate that included pharmaceuticals, chemicals, food, distribution, packaging, trading, and various other services. Some have worked at the largest companies in the Fortune 500 (for example, Mary Barra, who has been CEO of General Motors since 2014, Carly Fiorina, who was CEO at Hewlett Packard from 1999-2005, and Virginia Rometty, CEO at IBM from 2012 through April 2020) and others at the smallest companies. A USA TODAY analysis shows thatwhile corporationsand boardrooms have added African Americans over the decades, the executive suitehas not, even at companies that havediverse boards. In 2007 she left to work at PG&E. "The number of black CEOs in the Fortune 500 remains very low," Fortune, June 1; https://fortune.com/2020/06/01/black-ceos-fortune-500-2020-african-american-business-leaders/, [19] Sapna Maheshwari. Carol Tome, UPS (#43), grew up in Jackson, Wyoming, where her father owned a bank. You can learn more about the standards we follow in producing accurate, unbiased content in our. CORRECTION: A previous version of this story listed Marvin Ellison as CEO of J.C. Penney. Affirmative action is a series of policies that aims to increase the opportunities provided to underrepresented members of society. The median age of this population group in 2019 was 22, making Black Hispanics the second-youngest group included in this analysis, and notably younger than the U.S. population, which had a median age of 38. These changes, in turn, may impact how many people identify as Black (or any other race). As can be seen, the percentages remain quite small. He went to the elite Washington prep school, Sidwell Friends, and then to Harvard, from which he received his BA, a JD, and a PhD (in economics). I have seen people taking a stand and at least taking a side. Definition, How It Works, and Example, What is the C Suite? 21% of all S&P 500 directors in 2021 were from underrepresented racial and ethnic groups (Black, Asian American, Latinx/Hispanic, Native American, Alaska Native, or multiracial). Crist|Kolder Associates Volatility Report 2021. Ajay Banga has been the CEO at Mastercard since 2010. Only the South Asian CEOs in my sample had an average tenure longer than the average tenure for CEOs which, according to Fortune magazine, was 6.9 years in 2015. The four East Asian women all have Chinese American backgrounds. The two longest-serving held their positions for 11 years: Paul Diaz, a Cuban-American lawyer who was the CEO of Kindred Health Care from 2004 to 2015, and George Paz, a Mexican American accountant who became the CEO of Express Scripts from 2005 to 2016. This marks a 29% increase since 2000, when there were roughly 36.2 million Black Americans. When Marvin Ellison takes the reins of J.C. Penney in August, that share will grow to 1 percent. A few, including two of those who founded or co-founded companies, Wang and Huang, came from privilege, and a few clearly came from poverty. [37] The averages for the Asian and the Latinx CEOs were perhaps higher than those for white women and African-Americans because either they or their fathers were more likely to have founded the companies they led. Besides that, younger multiracial people are more likely to identify with multiple racial or ethnic identities, on forms or otherwise. These nine CEOs include well-established corporate leaders, as well as up-and-comers who are just beginning to make waves. Black lives matter. Over half (57%) of the multiracial Black population was below the age of 20 in 2019, and 3% were 65 or older. 2014. The fertility rate among single-race Black women in the U.S. ages 15 to 44 was 6.0% in 2019. After leading one of its companies, Old Navy, she became the CEO in March 2020 (#199 on the Fortune list). The 22 South Asian CEOs include 20 men and two women. Blacks have thrived in America for centuries. Intermountain Healthcare names Robert Allen president and CEO. And: Ruth Hill Useem and Richard D. Downie. To reach a point of 20% of Fortune 100 seats held by minority women would take until 2046 at the current rate of change. Craig Arnold, Eaton The CEO of power management company Eaton began his career at GE in the early 1980s. Of course, the addition of new directors from underrepresented groups is hampered by persistently low boardroom turnover. The lone Black CEO among the top 50 companies reviewed by USA TODAY is Kenneth Frazier of Merck, the pharmaceutical giant. It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. (+1) 202-419-4300 | Main As can be seen in Figure 3, the patterns have been quite different for African-American, Asian-American, and Latinx CEOs. website. 30.7% The percentage of the employed Black population age 16 and older working in management, business, science and arts occupations in 2019. An additional 23% were Millennials, meaning roughly 58% of all Black Americans were age 38 or younger in 2019. She went to James Madison University, where she got a degree in finance and business administration. She then surprised her Brahmin parents by coming to the USA to study at the Yale School of Management (as she put it, "It was unheard of for a good, conservative, South Indian Brahmin girl to do this"),[6] and that led to jobs, first with the Boston Consulting Group, and then Motorola, before she went to work at Pepsico and began a climb through management ranks that led to the CEO office in 2006. 1. 2019. There is a reason why so many Americans don't trust to government to use their tax dollars wisely. As can be seen in the far right column of Table 1, the number of white women and people of color appointed each year gradually increased to a peak in 2011, when there were 13, and then to another slightly higher peak in 2019, when there were 17. 23-24 and 233. With this appointment, Ford became the second openly gay Fortune 500 CEO, Tim Cook of Apple having been the first when he came out as a gay man in October 2014 (#5 in 2014, #4 in 2020) In April, 2019, James Fitterling became the third, and the first male board-appointed out CEO when he became CEO at Dow (#78 in 2020). Born in Puerto Rico, her mother was Puerto Rican and her father was an Anglo from New York; like many Latinas, and especially those with one Anglo parent, her appearance is that of a white woman. Additionally, a study by Boston Consulting Group concluded that greater minority representation at the top also leads to more innovation. Sen's father was a highway engineer. 2016, "What's in a Name? "Verizon is fiercely committed to diversity and inclusion across all spectrums because it makes us and the world better,"Verizon Chairman and Chief Executive OfficerHans Vestberg said in a statement. Among the relatively few who will emerge are men and women with multicultural backgrounds, who are multilingual, and who can move comfortably in the global elite. Facebook has pledgedtoemploy 30% more Black people in leadership positionsover the next five years. New York City is the metropolitan area with the largest share of the nations single-race Black population, with roughly 3.1 million. I have been married 9 yrs to good man. Today there are only 4 . Others had fathers who were well-educated professionals, who owned businesses, or who were executives in large companies. Efforts like these seem to be bearing fruit. But they only represent 8% of white-collar professionals, a number that has stayed steady since 2013, according to a study by the Center for Talent Innovation, a nonprofit research group. "With blacks making up 10 percent of college graduates, you would think there. Almost four-in-ten (38%) have completed some college and 30% have, at most, graduated from high school or its equivalent. They dont get looked period.. Many of these CEOs are helping to pave the way for others in minority communities to succeed. Leading business and diversity scholars warn against placing too much stock in Black representation on boards, which they say is too often window dressing to conceal the lack of diversity in the executive suite. Its investor relations site lists an all-whitemanagement team of seven, including CEO Mark Zuckerberg and his lieutenant, Sheryl Sandberg. Of the racial and ethnic minority groups, Asian Americans, who comprise 5.9% of the. While the needle didnt move much for these groups from 2020 to 2021, the overall trend has been positive for Latinx/Hispanic and Asian American CEOs since 2004 (the first year that the study examined). In some cases, the original groupings that we used decades ago no longer suffice, for now we can see that those born into some subgroups are much more likely than those born into others to become Fortune 500 CEOs. While a graduate student at Columbia, Burns participated in a summer internship for minorities at Xerox, and when she completed her degree she went to work for that company. This is an increase from 2000, when 2.4 million people, or roughly 7%, among the Black population were foreign born. Financial Times, April 15. 2020. Part of this is due to expansions in how the Census Bureau asks about ethnic and racial identity. Business and diversity scholars say the executive suite is still one of Americas most exclusive and impenetrable clubs, withthe corporate hierarchy most closely resemblinga plantation: Heavily white at the top. Merck CEO to step down: Kenneth Frazier is leaving, becomes executive chairman. Bernardo Hess, the Brazilian-born CEO of Kraft Heinz from 2015 through 2019 (#115), is the son of a father who was an executive with Bechtel and a mother who was a teacher. "These results suggest," the authors conclude, "that East Asians hit the bamboo ceiling because their low assertiveness is incongruent with American norms concerning how leaders should communicate. Texas is home to the largest number of Black people of any state, with around 3.4 million single-race Black people. The 2021 S&P 500 Board Diversity Snapshot from Spencer Stuart, a leadership consulting firm based in Chicago, looked at proxy statements from 493 S&P 500 companies filed from May 28, 2020, to May 13, 2021. What Is DEI and Why Is it Important for Your Company Culture?, Ford Foundation. Fully 11 of the 20 African-American CEOs have been at companies in the top 100, including Franklin Raines, CEO at Fannie Mae from 1999-2004, Stanley O-Neal at Merrill Lynch from 2002-2007, Kenneth Chenault at American Express from 2001-2017, and Kenneth Frazier, CEO at Merck since 2011. But where did it all start? But, she says, it's a lot easier to black out your Instagram profile for a day than to look inward, "particularly when many of the people at the top of these workforces are white men who havent had to wrestle with these issues and havent, as we know from history, been motivated to do the difficult work of really trying to change these issues.. "Citigroup's Fraser to Be the First Woman to Lead a Big Wall Street Bank," New York Times, September 10; https://www.nytimes.com/2020/09/10/business/citigroup-ceo-jane-fraser.html, [26] Kate Kelly. Daniel Kurt is an expert on retirement planning, insurance, home ownership, loan basics, and more. Former American Express CEO Ken Chenault said "there are thousands of black people who are just as qualified or more qualified than I am," commenting on a report that found that less than 1% of Fortune 500 companies are led by an African-American CEO. The results can be seen in Table 2, below. Internally, many organizations are making a concerted effort to diversify their ranks. Other top metropolitan areas include Atlanta, Washington, D.C., Chicago and Philadelphia. Within that group, Black executives made up at least 20 percent of . Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. The company executives page on Nikes website recently went through its own makeover. Money is important but its not going to solve this problem all alone. After various positions, mergers, and acquisitions, she emerged as the newly appointed CEO. 2020. See What Census Calls Us for more details on how the racial and ethnic categories have changed throughout the years. When it comes to educational attainment, almost a third (32%) of multiracial Black adults ages 25 and older have earned a bachelors degree or higher as of 2019. And there is no shortage of minority candidates who can compete for these jobs, Parsons said. Flexible Citizenship: The Cultural Logic of Transnationality, Durham, NC: Duke University Press. The peak year for representation. The History and Politics of Hispanic and Latino Panethnicities," in The New Latino Studies Reader: A Twenty-first Century Perspective, ed. 5 Anterior (a) and lateral (b) view of the cleft skull of an 18- to 23-year-old man . This time, I started by looking at the 22 companies in the top 25 that provided photos and biographical information. In 2019, there were 46.8 million people who self-identified as Black, making up roughly 14% of the countrys population. Honeywell. There have been 41 Latinx CEOs of Fortune 500 companies since 2000: 39 men and two women. So what is he supposed to do as a Black businessman who has served as a member of several companies boardrooms? The average Fortune ranking for the Latinx CEOs was 268, and the median ranking was #250. Jung's father was an architect, and her mother was chemical engineer (and a pianist). From hip hop of New York to the California surfers and skaters. The Victoria's Secret model dated Leo for 10 months from 2011 to 2012 but they are said to have broken up due to their conflicting, busy . Thousand Oaks, CA: Sage. Ford and her wife, Jill Schurtz (a West Point graduate, and a lawyer), are raising three teen-age daughters. There have been only two African-American women CEOs of Fortune companies. [18] Phil Wahba. I know what you are wondering (well, as someone who has been studying Jews in the corporate elite for 40 years, I was wondering): is Jide Zeitlin Jewish? Other top metropolitan areas include Miami (100,000), Boston (100,000) and Los Angeles (70,000). Very few African Americans make it within striking distance of the executive suite, two or three salary grades below Fraziers senior team. Read our research on: Election 2022 | Economy | Abortion | Russia | COVID-19. When she graduated, she went to work for Florida Power and Light, and stayed with that company for 24 years. Former Froedtert Health president and CEO William Petasnick dead at 76. But even on his watch, progress is elusive. Two black CEOs have stepped down in recent years Kenneth Chenault of American Express and Ursula Burns of Xerox leaving Kenneth Frazier of Merck , Marvin Ellison of J.C. Penney and Roger. The most common ethnicity of chief information officers is White (82.0%), followed by Hispanic or Latino (6.6%), Asian (6.5%) and Black or African American (3.0%). Within the group of households with incomes over that sum, more than a quarter (27%) make $75,000 or more, including 17% that make $100,000 or more. Companies must also create a diversity hiring strategy specifically for black employees. For Once, Dont Do It., About Amazon. There have been 35 men and women we are including in this umbrella term Asian-Americans who were CEOs of Fortune 500 companies between 2000 and 2020. MORE IN THIS SECTION HBCUs and HSIs Benefitted 1992. This is an increase from 2000, when 250,000 people, or roughly 16%, among the multiracial non-Hispanic Black population were foreign born. Over the complete history of the Fortune 500, which dates back to 1999, there have only been a total of 18 Black CEOs leading America's Fortune 500 companies. About 65% of blacks in the study said they have to work harder to advance, compared with only 16% of white employees. When it comes to educational attainment, almost a quarter (23%) of Black Hispanic adults ages 25 and older have earned a bachelors degree or higher as of 2019. Kenneth Frazier became CEO of Merck in 2011 (#53 that year). Therefore, they assert, East Asians, like women, face the challenge of a glass cliff, but for different reasons: whereas women are perceived as more likely to be warm, more effective in managing people and in defusing conflict, East Asians are perceived as more likely to be self-sacrificing, and, as a result, more likely to promote within-group harmony and cooperation. A few mention that they love scuba diving and at least one is a "certified" scuba diver (Tricia Griffith, CEO of Progressive, #86 in 2020). More than a third (38%) of households that Black people live in are headed by married couples as of 2019. For Black people, that ratio is 105 to 1. Last year, 9.9% of its vice presidents were Black, according to Nike, which also recently announced a $100 million commitment to the Black community from Michael Jordan and Nikes Jordan Brand. For example, a 2021 report from executive recruiting firm Crist|Kolder Associates, which examined 682 S&P 500 and Fortune 500 companies, found that: According to the latest U.S. Census Bureau data, Latinx and Hispanic people represent the largest racial or ethnic minority group in the United States, comprising 18.5% of the total population. See Raquel Reichard. The general fertility rate among Black women ages 15 to 44 is 5.9%. This fact sheet is a profile of the demographic, geographic and economic characteristics of the U.S. Black population in 2019. The five African-American CEOs in office in 2020 reveal the varied socioeconomic backgrounds that can lead to these positions, but also the importance of education. Only 1 of the 3 Black CEOs on the Fortune 500 is a woman. And while changing the look of boardrooms is important and challenging in itself, tackling the lack of minority leadership in the C-suite is an even bigger hurdle. Americans could be in for a tax refund shock next year, An alarming number of 2022 homebuyers are already underwater, Identical twins accused of cheating on a test awarded $1.5 million. At the end of that article the correction read as follows: "An earlier version of this article misstated the number of Black chief executive officers in the Fortune 500. Asian American Panethnicity, Philadelphia: Temple University Press. 62-63. Many of the Latinx Fortune 500 CEOs born outside the USA come from privilege, and therefore it is important to keep in mind the key variable of socio-economic class (even though it is often difficult to ascertain). 2020. More than 4.6 million Black people in the U.S. were born outside the country as of 2019, meaning that 10% of the Black population was foreign born. Regionally, Black Hispanic people are largely concentrated in the Northeast and South (72% in total). The question is whether such progress will be sustained over time. He is very light-skinned based on his photograph alone I would not have spotted him as an African-American (nor would I have done so by his name, Ren). The Center for Talent Innovation's "Being Black in . The number of women running businesses on the Fortune 500 list hit 41 in 2021, an all-time high. Some were college athletes. HR Policy Association, via Internet Archive. Last month, Netflixhired prominent Black executive Bozoma Saint John as its chief marketing officer. In 2019, 51% of the Black Hispanic population in the U.S. were members of Gen Z or under the age of 7. What about the wife he met at Harvard, Tina Goldberg? Impact of George Floyds Murder and Black Lives Matter Movement on Board Diversity., USA Today. Black CEOs will lead just .8 percent of America's top companies once Thompson steps down. When she was eight, Moammar Ghadaffi's Free Officers' Movement overthrew the Libyan government in a coup d'etat. Lanham, MD: Rowman & Littlefield, p. 68. The peak year for representation. Most speak both Spanish and English, and some emphasize in their biographical sketches that they speak more than two languages. I thought this was the beginning of a wave of African American executives coming into the C-suite, Parsons said. One snapshot of the racial stratification in private industry can be seen in the ratio of those at the top compared withthose at the bottom. Although there is little research on how much companies spend on diversity recruitment in total, individual companies like Google andIntel report spending hundreds of millions annually to diversify their staff. Smaller shares of adults within this population subgroup identify as Catholic (11%), other Christian denominations (4%) or non-Christian faiths (6%). The median age of single-race Black people in 2019 was 35, three years younger than the full U.S. populations median age of 38. E-mail: bschrotenb@usatoday.com, Less than 2% of top executives at the 50 largest companies are Black. And the overall number is down from 7 Black Fortune 500 CEOs almost a decade ago. Like Hayward Donigan, the white woman who became CEO of Rite Aid in 2020, he attended the elite Hackley School in Westchester County outside of New York City (tuition in 2020: $44,000). These 72 well-educated white women include many who have degrees from Ivy League schools (four from Harvard, three from Princeton, three from Penn), Stanford (five), Wellesley (three), and the University of Chicago (two), as well as many who attended the flagship state schools where they grew up (including the University of Texas in Austin, the University of Wisconsin in Madison, and the University of Washington in Seattle). In "The CEO Life Cycle," the recruiting firm Spencer Stuart discusses the results of a data-driven study that reveals a common pattern in how CEOs perform . Fewer than one-in-five live in the West (17%), and 0ne-in-ten live in the Midwest (10%) as of 2019. Just four black CEOs run Fortune 500 companies in America, and they are speaking out about racial inequality following the death of George Floyd . Apples larger leadership team of 16 has one Black executive, according to its website. A diverse workforce allows companies to benefit from a variety of perspectives. This marks a 29% increase since 2000, when there were roughly 36.2 million Black Americans. [18] I had missed one: Ren Jones, the CEO of M&T Bank (#462). The 13 East Asians include nine men and four women. No Black or Hispanic women head Fortune 500 companies, while three Asian American women serve as CEOs. Men's streetwear has been in style since the 1990s. They found support for the "glass cliff" effect: women and men of color were significantly more likely than white men to have been appointed as CEOs at companies with weak performances. Today there are three: Kenneth Frazier of Merck, Roger Ferguson of TIAA and Marvin Ellison of home improvement giant Lowe's. Roughly a third (32%) have completed some college, and 45% have, at most, graduated from high school or equivalent. The Black population has grown by more than 10 million since 2000, when 36.2 million of the U.S. population identified as Black, marking a 29% increase over almost two decades. Hewlett Packard Enterprise. The center's study comes at a time when America continues to lose black CEOs and companies are spending millions of dollars trying to diversify their staff, often to little avail. [8], Nazzic Keene took a much less traditional path to corporate power than Muhtar Kent. This is a casual form of fashion trend. [34] These data are quite similar to those found in a Stanford Business School study of diversity in the C-Suites of Fortune 100 companies. And while Black people make up about 13.4% of the country, only six were CEOs in 2021, up from five in 2020. Those from the immigrant groups that made up the Latinx population in the United States those Mexican Americans, Cuban Americans, Puerto Ricans, and those from other islands in the Caribbean have had a very different experience than those born into elites in other countries, the Spaniards and those of Spanish descent who grew up wealthy in various South American countries (and, in terms of growing up wealthy, we could include many who fled Cuba in this group). So, too, has the number of Black CEOs remained flat (between 2% and 3.5%). Her name definitely sounds Jewish, and Goldberg is on the list of Distinctive Jewish Names that we have used in our research over the years to estimate the number of Jewish directors on Fortune 500 boards, but she is a false positive: her father was Jewish, but not a practicing Jew, and her mother was not Jewish. For example,Microsoft CEOSatya Nadellasays he plans to tie the promotion of senior executives to their diversity efforts. While the number of Latinx/Hispanic and Asian American CEOs at S&P 500 and Fortune 500 companies has grown over the past decade, Black representation remains stagnant. The 35-year-old founder and CEO of Walker & Co. Brands says he's grateful for progress. Many are engineers with undergraduate and graduate degrees in chemical engineering, electrical engineering, and mechanical engineering. And why do they accept these especially challenging jobs? Frazier is Black. Other than those currently in office, the average length of time as CEO for the South Asians who were CEOs of companies on the Fortune 500 list was 6.4 years. This is a list of Women CEOs of the Fortune 500, based on the magazine's 2022 list (updated yearly). 04:49 - Source: CNN Top business . The CEO-to-regular-worker ratio increased from 293-1 to 320-1 (it was 21 to 1 in 1965, and 61-to-1 in 1989. For example, Mary Dillon, the CEO of Ulta since 2013, a company that made the Fortune list in 2018 (at #471), is married to a biochemist who quit his job to stay home and take care of their three children. http://whorulesamerica.net/power/diversity_update_2020.html. The South is the region with the highest concentration of the single-race U.S. Black population in 2019, with a roughly six-in-ten majority (59%) of the total. Within the 682 companies in the study, people of color held 73 CFO positionsan all-time high representation of 11%. Hismajority-minority-led company makes a modern personal care line for people of color andmerged withProcter & Gamble in 2018. What Is DEI and Why Is it Important for Your Company Culture? When I emailed the Wall Street Journal reporter to alert her to the error I had made, I also noticed that at the end of the Fortune magazine article there was a correction indicating that the author of that article also had initially missed that Ren Jones is black ("Correction: This story originally omitted the CEO of M&T Bank in its list of Black CEOs"). A majority (69%) of single-race Black adults identify as Protestant. All five of the top executive officers are white, a common reality in corporate America more than 55 years after the Civil Rights Act. She was born in a small town in southeast China to a family with no education. Still, the white men, who make up about 35% of the population, continue to be very much over-represented, and the gap between them and the New CEOs is still immense. Glass cliff refers to the tendency of groups to put women in power during times of crisis or downturn when the chance of failure is more likely. Crist|Kolder Associates Volatility Report 2021.. For example, a separate analysis by McKinsey found that companies that ranked highest in ethnic and cultural diversity were 33% more likely to lead their industries in profitability. [38] Follow-up studies they performed indicated that evaluators perceived East Asian CEOs as more likely than white men to be self-sacrificing and believed that they were more likely to be effective in periods of decline than periods of success. 2014. [4] She began her career as a CPA at Arthur Anderson and then became the chief financial officer at a number of major corporations. 2019. Three-in-ten (30%) live in households whose head is female, and 5% live in male-headed households. The Northeast is home to 15%, another 17% live in the Midwest and 9% live in the West. Unlike the part-time boards of directors that oversee and advise the company leadership, top executives of these businesses are the captains of industry running the economy full-time and making decisions about the ways we communicate and shop, how our banks are run and what kind of information and entertainment we see online. These include white papers, government data, original reporting, and interviews with industry experts. Winston became the interim CEO. 2014. California is the top state of residence for multiracial Black people, with over 350,000. Similarly, in a 2018 archival study of 4,951 CEOs across five decades that builds on glass cliff theory, Gundemir, Carton and Homan found that East Asian-American CEOs were much more likely than white male CEOs to be appointed during periods of decline. What Is the Racial Wealth Gap? In 2021, women earned 90% of what men earned. She was born in 1962 in Tripoli, Libya, to a Libyan father and a white American mother who had grown up in Tucson, Arizona. An affordability index is a measure of a populations ability to afford to purchase a given good or the cost of living in a given area. In a statement, Netflix told USA TODAY that in the past three years in the U.S., it has made strides, increasingthe number of Black American vice presidents from three to nine and the percentage of Black executive-level managers from 0% to 13%. / MoneyWatch. Corporations are hunting for Black executives to serve on boards of directors and for recommendations for top openings. They became his legal guardians, and later adopted him. It also puts corporations at a disadvantage. The term Hispanic has been favored by some, especially on the East Coast; others prefer Latino, especially on the West Coast. However, when Ren Jones was appointed in 2017, the 18th African-American Fortune 500 CEO since 2000, it was not so newsworthy, and therefore easier to miss. She worked there for more than a decade, worked for Ernst and Young, and then was hired by American Management Systems. Subsequently released papers revealed that despite the bankruptcy, and a $6.9 billion loss in revenue in 2018 (compared to a profit of $1.7 the previous year), she received a salary increase of 8.3% "tied to corporate performance," raising her salary for 2018 to $9.3 million. We have learned over the years that our original category of Asian-Americans was far too encompassing. She remained on the Board. The number of Latinx/Hispanic CEOs during the period more than doubled, from nine in 2004 to 20 in 2021. There has been considerable debate and disagreement among scholars and political activists about what general name, if any, should be used to characterize a group whose main common heritage is the Spanish conquest and the Spanish language. It recently set goals to increase the representation of Black employees at all levels of the company. The comparison between African-American CEOs and members of Congress during this same period, as seen in Figure 5, reminds us that in the Senate for the past two decades, there have never been more than three African-Americans. Now, looking at the patterns of the New CEOs over the last twenty years, it becomes clear that some flexible immigrants and third culture kids, especially those born to wealth and privilege in their home countries around the world, have emerged to lead multinational Fortune-level corporations. Thats much tougher than just giving money. A one-sample t-test comparing the average tenure for the 104 New CEOs (5.95 years) with the average tenure of the Fortune 500 CEOs in 2015 (6.90 years) reveals that the difference is statistically significant (t=2.17, df=103, p<.03). While at Harvard he met Tina Goldberg, they married, and have two children. More than 100 candidates from underrepresented groups were hired with no quotas. Why Are There Still So Few Black Executives in America? And Institutional Shareholder Services, an influential advisory firm, announced that its research reports would start calling out large companies that lack racial and ethnic diversity.. Black CEOs: Among Fortune 500 companies, less than 1% of CEOs are black. https://whorulesamerica.ucsc.edu/power/rise_and_fall_of_diversity.html, [25] Emily Flitter and Anupreeta Das. Black people account for about 12% of the U.S. population, but occupy only 3.2% of the senior leadership roles at large companies in the U.S. and just 0.8% of all Fortune 500 CEO positions, according to the analysis by theCenter for Talent Innovation, a workplace think tank in New York City. The single-race Black population is young and growing. If I not only omit the two outliers but also omit the four New CEOs whose appointments were interim (one white woman, two African-Americans and a Latino), each of whom served for only for one or two years, the difference approaches but is not significant (t=1.73, df=99, p<.08). Her father, whom she described to one interviewer as having "street smarts," had no formal education, and the family was unable to enroll her in school until she was seven. Yes. Nearly all 48 issued statements in support of the Black community following Floyd's death May 25, an unprecedented outpouringafterdecades of corporate silence on anti-Black racismand police killings in the United States. Besides English, roughly half (51%) of this population speaks Spanish. Two-thirds (66%) of all Black adults identify as Protestant. The number of African American CEOs dropped from its peak of seven in 2007 to six, the number of Latinos from 13 in 2008 to 10, and the number of Asian Americans from 15 in 2011 to 10. Bank of America, Pfizer and McDonaldseach have two Black board members but also list no Black executive officers. Diversity in the Power Elite: How it Happened, Why it Matters. The average age of an employed chief executive officer is 52 years old. He did his undergraduate work, and a master's degree, in England, served in the Turkish military, and in 1978 came to the United States where he lived with an uncle and went to work for Coca-Cola. [23] Lois Weis, Kristin Cippoloni and Heather Jenkins. 2014. This is an increase from 2000, when roughly 260,000 people, or about 27%, among the Black Hispanic population were foreign born. However, as I have noted, if we were to include the 34 white women Fortune 500 CEOs in 2020 with the white men, then 92.6% of the Fortune 500 CEOs are white. Then, in an educational trajectory that has worked for so many white CEOs who grew up in privileged backgrounds, he went to the elite Milton Academy, to Amherst College (from which he graduated magna cum laude with a double major in Economics and English), and then earned an MBA from Harvard. Whereas the 2011 peak was based on the appointments of five white women, one African-American, three Latinx, one East Asian and three South Asians, the peak in 2019 was largely the result of the appointments of white women: 10 were appointed that year, along with four Latinos, two African-Americans, and one South Asian. Get browser notifications for breaking news, live events, and exclusive reporting. What's Included and History, What Is the Equal Credit Opportunity Act (ECOA)? Thats the next step. Now, like those in that second wave, many of the women in this newest group make clear that having been on teams, or at least being fit, is important to them. More than half of these households (55%) earn less than $50,000, with the other 44% making $50,000 or more. There have been only 18 Black chief executives of Fortune 500 companies since 1999. Kristin Peck, Zoetis (#472) a Georgetown graduate with an MBA from Columbia, is the daughter of a media executive father and an interior decorator mother (her wedding announcement, like that of Heyward Donegan, appeared in the New York Times). They concluded that one of the three, low assertiveness, but not the other two, prejudice against Asians, or the amount of motivation that they had, was the key reason for this difference. In May of 2017, I wrote a Forbes blog celebrating 28 awesome Black women, and started a list on our website that could be useful for The company's ads,which famously encouraged America to "Just Do It," have celebrated disabled athletes, female participation in sports and Colin Kaepernick, the outcast NFL player who protested racial injustice in 2016. [37] Are these differences statistically significant? Consumer brands are often accused of sidestepping controversy. The term "Asian-American" first appeared in 1968 in an effort to develop pan-Asian organizations to resist discrimination and ensure a fair share of social services at the local level. They are well-educated, with degrees from schools all over the world and from elite schools in the USA, including Harvard, Yale, Dartmouth, Stanford and Georgia Tech. They are victors. Theseregulatory filings show compensation for the top executives, amongother corporate matters, to help shareholders make informed decisions at stockholder meetings. In 2019, the compensation of the CEOs at the top 350 firms averaged $21.3 million, an increase of 14% from 2018. He received his BA from Penn State and went on to earn a JD from Harvard. All five were from privileged backgrounds. It now shows an expanded photo line-up of 16, including three Black executives who had been with Nike since at least 2019 but were not previously listed on that page as top executives. She has a BA in mechanical engineering from Kettering University, and an MA from Stanford. The multiracial population pyramid shows that this population is young and growing. Amazon, Microsoft, JPMorgan and Walmart also are among the companies that have a Black board member but no Black executive officers listed among their top five on their proxy statements. Click here for a downloadable spreadsheet of these findings. Many are married to high-powered executive husbands, but notably, some have reported that their husbands gave up careers to take care of the children. In 1981, when he became the CEO at Coca Cola (#56 on the list that year), Cuban-born Roberto Goizueta became the first Latino CEO of a Fortune 500 company. Of the 83 women who have been CEOs of Fortune 500 companies since 2000, 72 have been white women. Along the way, he was on the board at Milton, and on the board at Amherst College from 1993 to 2013 (he was the Chair of that board from 2005 to 2013). The term Black Hispanic is used to refer to those who self-identify as Black and Hispanic or Latino, as well as those who self-identify as multiracial Black and Hispanic or Latino. In that capacity, using the alias of "James Green," he set up a studio and took photos of many women (it is alleged in the article that subsequently was published that some were nude photographs). But now, 20 years later, the New CEOs are not so new, and there are enough of them so that it is possible to step back and look at the patterns that have emerged over these two decades. Are white women and people of color more likely to have made it to the top of the corporate world or through the electoral process? For example, a recent survey by McKinsey & Co. found that minority employees were more likely to report being excluded from social activities with co-workers or having to correct false assumptions that colleagues made about their personal lives. . Then, because I suspected that larger companies were more likely to include diversity in their leadership teams, I looked at those executives in the companies ranked between #251 and #275 that included photos and biographical information. The concepts of third culture kids and flexible immigrants apply to many of the CEOs we have described, including Muhtar Kent, who was born in New York City to a Turkish ambassador, educated in England and then served in the Turkish military before his ascent through Coca-Cola's corporate hierarchy. Daniel has 10+ years of experience reporting on investments and personal finance for outlets like RothIRA.com, AARP Bulletin, and Exceptional magazine, in addition to being the "Bank of Dad" column writer for Fatherly.com. Bristol Myers Squibb said it was expanding its board from 12 to 14 to add new board members Paula Price and Derica Rice, both of whom are Black. Figure 1: White male CEOs and "New CEOs" in the Fortune 500, 2000-2020, Table 1: New "New CEOs" (new appointments), by year, 2000-2020, Figure 3: Women, African-American, Asian-American, and Latinx CEOs, 2000-2020, Figure 4: Women CEOs, Women in the U.S. Senate, and Women in the U.S. House of Representatives, 2000-2020, Figure 5: Black CEOs, Black members of the U.S. Senate, and Black members of the U.S. House of Representatives, 2000-2020, Table 2: Potential "New CEOs" in the Pipeline, 2011 and 2020, Continuing Corporate Dominance (No, the Corporate Elite Is NOT Fractured), An Investment Manager's View on the Top 1%, How Corporate Moderates Created Social Security. In addition to being a moral imperative, research suggests that increased diversity helps companies succeed financially. It helps to explain why the wealth gap in this country has gotten so much worse in the last 40 years, Rogers said. Today, stubborn patterns of exclusion and discrimination are still keeping Black executives from reachingthe top rungs despite the heights climbed by trailblazers such asformer Xerox CEO Ursula Burns, the first Black woman CEO in the Fortune 500, and ex-American Express CEO Kenneth Chenault, who ran the credit card giant for 16 years. The Options Clearing Corporation (OCC) works with regulators and acts as the issuer and guarantor for options and futures contracts. For example, Charles B. Wang, born in Shanghai in 1944, founded Computer Associates International in 1996, Jerry Yang, born in Taiwan in 1968, was the co-founder of Yahoo, Robert Huang, born in 1945 in Taiwan, founded Synnex, and Jen-Hsun ("Jensen") Huang, born in 1963 in Taiwan, founded Nvidia. The vast majority of the Black population as of 2019 speaks English very well or only speaks English at home (96%), while almost nine-in-ten (89%) speak only English at home. Black CEO One of Four on Fortune 500 . Indra Nooyi, the CEO of Pepsico from 2006 to 2018 was the first South Asian woman to become a Fortune 500 CEO (Pepsico was #63 in 2006, #45 in 2018). Over a third of the U.S. Black population (35%) was 22 years or younger in 2019. Purpose, What Is Affirmative Action? I told her that slightly more than a decade earlier there had been as many as seven, but there were at that moment only four. 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