He earned both his Bachelor of Science in business administration and his Master of Arts in communication from Marquette University. U.S. Black population (which is inclusive of the following three demographic subgroups). People with different backgrounds and experiences often see the same problem in different ways and come up with different solutions, increasing the odds that one of those solutions will be a hit, the authors noted. We have called them "The New CEOs" to emphasize that they are not, like the old CEOs, white males. Nike, you have the power and the means to be the change that you promote in your seductive campaigns in support of the Black community, and it starts from within your own organization, he wrote. 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). And thats going to be hard," hesaid. Last month, Netflixhired prominent Black executive Bozoma Saint John as its chief marketing officer. Roger Ferguson Jr. became the CEO of TIAA-CREF in 2008 (it was #86 on the Fortune list that year). Over half (57%) of the multiracial Black population was below the age of 20 in 2019, and 3% were 65 or older. The black CEOs on our list come from all corners of the country and lead public and private companies across all sectors of the economy. It helps to explain why the wealth gap in this country has gotten so much worse in the last 40 years, Rogers said. The trajectories for white women and people of color as CEOs are summarized in Figure 1. The majority indicated that they thought of themselves as "Mexicans," "Puerto Ricans," "Cubans," or whatever their country of family origin.[17]. 2015. / MoneyWatch. Let's dive in and take a closer look at these leading Black American CEOs. 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. The company website lists an 18-member executive team with one Black member: Maxine Williams, the companys chief diversity officer. Ten years ago, in 2011, there were 12 women in the Fortune 500 CEO role ( 2.4% ). Affirmative action is a series of policies that aims to increase the opportunities provided to underrepresented members of society. 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). Even small changes to senior teams can generate gains, the study found. Daniel Kurt is an expert on retirement planning, insurance, home ownership, loan basics, and more. The most common ethnicity of chief executive officers is White (81.1%), followed by Hispanic or Latino (7.0%), Asian (6.8%) and Black or African American (3.2%). By the 10th Century, hanging from gallows was the most frequent execution method. 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. Broader analysis shows that more than half (54%) of Black households earn less than $50,000, while 46% make $50,000 or more. The History and Politics of Hispanic and Latino Panethnicities," in The New Latino Studies Reader: A Twenty-first Century Perspective, ed. Raines' father was a janitor, and Ward's father was at times a postman, at times a janitor, and he grew up in a small house with no running water. Lets Close the Gap on Board Diversity., Compliance Week. This entire, rancorous debate should refocus on three words: Black Success Matters. Kenneth Frazier became CEO of Merck in 2011 (#53 that year). Cook and Glass speculated that women and minorities are more likely to accept positions leading troubled companies because they see it as their only chance. 23-24 and 233. [24] Richard Zweigenhaft. Additionally, roughly 460,000 members of this population were born outside of the country, meaning that almost one-in-five Black Hispanics (19%) are foreign born. When the first African-American Fortune 500 CEOs were appointed back in 1999, there was considerable media coverage. From these statistics, the percentage of women in CEO roles has steadily increased since 2000, albeit slowly. For African-Americans, the flow through the pipeline was indeed minimal, with only 2.6% (seven males, one female). The father of Heyward Donegan, Rite Aid (#150) was an executive at IBM, and her mother became an Episcopalian priest when Heyward was 14. The peak year for representation. Among all U.S.. McKinsey & Co. Delivering ThroughDiversity, Page 1 (Page 3 of PDF). Others had fathers who were well-educated professionals, who owned businesses, or who were executives in large companies. For example, the U.S. Bureau of Labor Statistics, which collects data across the entire economy, reported that in 2021, Latinx/Hispanic individuals comprised only 7.4% of all chief executives. Not counting the one interim appointment (Claire Babrowski at Radio Shack in 2007), and those who were still CEOs in 2020, the average length they were CEOs of Fortune-ranked companies was 6.1 years, with a range from 33 (Marian Sandler at Golden West from 1973 to 2006) to a few who lasted less than a year (Debra Crew at R. J. Reynolds in 2017, and Melissa Miller at Alliance Data Systems in 2019). The white women who have been appointed since 2015 seem to be quite similar to the white women CEOs appointed before them: they are very well-educated, tend to be from privileged backgrounds, almost all are married and have children, and many were, or still are, athletes. California is the top state of residence for multiracial Black people, with over 350,000. [8], Nazzic Keene took a much less traditional path to corporate power than Muhtar Kent. 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. The graph in Figure 1 indicates that the number of white males has decreased from 96.4% in 2000 to 85.8% in 2020. Nobody should be able to look at a man being killed on camera because someone is kneeling on his neck as an agent of the state and not be moved by that, said Adia Harvey Wingfield, sociology professor at Washington University in St. Louis whose research focuses on racial and gender inequality in professional occupations. [1] Dennis Gilbert. 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. Since 2000 alone, the number of black immigrants in the U.S. has risen 71%. Before the turn of the century, and therefore before the flow of new Fortune 500 CEOs began, two social scientists put forth concepts that now may help us to predict future CEOs: "third culture kids" and the "flexible immigrant. For example, Vikram Pandit, the CEO at Citibank from 2007 through 2012 (#8 in 2007, #20 in 2012), holds BS and MA degrees (both in electrical engineering) and a PhD (in finance) from Columbia, and George Kurian, the CEO at Netapp since 2015 (#428 in 2015, #478 in 220), has a BA (in electrical engineering) from Princeton and an MBA from Stanford. Companies with above-average diversity in their management teams generated significantly more income from products launched within the past three years than less diversified companies. When it comes to educational attainment, almost a quarter (23%) of all Black adults ages 25 and older have a bachelors degree or more. 2014. "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. [1] The other one third were from middle- or working-class backgrounds. When asked who the important mentors have been in his life, Mauricio Gutierrez, who became the CEO of NRG in 2015 (#196 in 2015, #324 in 2020), said that he got the best advice from his father, who was the CEO of a company in Mexico (the advice: first listen to others, but then be willing to make a decision). The term Hispanic has been favored by some, especially on the East Coast; others prefer Latino, especially on the West Coast. Therefore, it was not until 1999, when Franklin Raines became CEO of Fannie May (#26) and Lloyd Ward became CEO of Maytag (#379), that there were Black CEOs of Fortune 500 companies. Since that time, many academics have explored this phenomenon, with mixed results. A majority (69%) of single-race Black adults identify as Protestant. [5] However, these different groups often remain wary of one another because of historic enmities between their native countries. The first was Ursula Burns, the CEO of Xerox, from 2009 to 2016 (Xerox was #147 in 2009, and #150 in 2016). A substantial majority of the multiracial Black population speaks English very well or only speaks English at home (82%), while almost half (48%) speak only English at home as of 2019. There were five African-American CEOs in 2004, and there were five in 2020. Three-in-ten Black Hispanic people (30%) lived in female-headed households and 5% lived in households headed by male householders. Merck CEO to step down: Kenneth Frazier is leaving, becomes executive chairman. He grew up in a small town in Massachusetts, went to Boston College, and then earned an MBA from the University of Rochester. For example, a group of Silicon Valley leaders launched The Board Challenge, which calls for companies to appoint a Black director within the next year. He spent a summer working in the AP photography department, and he continued to take photographs, and publish them under a pseudonym, even as he rose through the ranks as a banker at Goldman Sachs. Companies across the country have been speaking out against racism, but less than 2% of top executives at 50 largest companies are Black. It turns out that to have a level playing field, you have to go out and search for candidates who can compete. 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. As can be seen in Figure 3, the patterns have been quite different for African-American, Asian-American, and Latinx CEOs. Asian-Americans, however, showed a decrease, from 7.8% to 6.4% (more South Asians than East Asians we did not code for that in 2011), and Latinos showed a sharp drop from 4.2% to 1.4%.[34]. Ajay Banga has been the CEO at Mastercard since 2010. Six years later, the worlds most valuable company,has one Black board member and an all-white top-five executive tier, led by CEO Tim Cook,who announced a $100 million commitment to racial justice in June. This is a casual form of fashion trend. ICE Limitations. To live up to all those statements since May 25, he said companies must network outside their comfort zone. More recently, many have adopted the term "Latinx" to acknowledge that not all people fall under the gender binary of male and female. This stark racial divide has a cascading effect, stagnating income levels and helping worsen the race, class and wealth gap that is yawning even wider during the COVID-19 pandemic. Besides English, roughly half (51%) of this population speaks Spanish. Diversity, equity, and inclusion (abbreviated as DE&I or DEI) refers to programs and policies that encourage participation and representation from diverse groups. Reinsurance Group of America: 222: January 1, 2017: Yes Beth E. Ford: Land O'Lakes: 232: August 1, 2018: No Judith F. Marks: Otis Worldwide: 254: April 3, 2020: Yes . In 2004, Michelle Ryan and Alexander Hasslam, two British academics, coined the term "glass cliff" to refer to their findings that women who had been appointed as CEOs were more likely than men to have taken over companies that had experienced especially poor performances during the previous months. Take the Pledge. Seven of the nine were born outside of the USA, and the other two were first-generation Japanese Americans born in this country. The Black population, either alone or in combination with one or more races, in the United States in 2019. Netflixs website now shows her as the only member of its management team of eight who is not white. 2014. 124,004 The number of Black-owned employer businesses in the United States in 2017. One of Nikes board members, John W. Rogers Jr., said that Nike CEO John Donahoe has transformed his team after taking over in January. In all, 20 African-Americans were Fortune 500 CEOs between 2000 and 2020, 18 men and two women (neither of whom was still in office in 2020). The November 2020 election did not lead to major changes in these patterns, though there was a marked increase in the number of Republican women elected to the House of Representatives (from 13 to 29). Marvin Ellison, Lowe's. Image source . The success of Tristan Walker and other Black entrepreneurs and executives in the tech world helped propel Robinson. https://lnkd.in/gPMk7DDh Most interestingly, these concepts also apply to Jide Zeitlin, who was born in Nigeria but was adopted by an American family, spent three years of his childhood in Pakistan and then five more in the Philippines, and then came with his new family to Cambridge, Massachusetts, where he attended the prestigious Milton Academy, went to Amherst, and did graduate work at Harvard. Definition, How It Works, and Example, What is the C Suite? What matters is sustained action.. In nine empirical studies, using a variety of methods and samples, they looked especially at three possible explanations for why this "bamboo ceiling" seemed to affect East Asians much more than South Asians. The median age of multiracial Black people in 2019 was 16, making this the youngest subgroup of the Black population and significantly younger than the U.S. population (which had a median age of 38). Texas is home to the largest number of Black people of any state, with around 3.4 million single-race Black people. Employed Persons by Detailed Occupation, Sex, Race, and Hispanic or Latino Ethnicity, Page 1. We have to be willing to take the position that, if we're not racist, we need to challenge a process, a system, a custom that allows African Americans to advance, not at the same rate as everybody else, Frazier said in the Harvard interview. When she stepped down as CFO at Family Dollar, she decided, as she puts it, to "semi-retire." Apples larger leadership team of 16 has one Black executive, according to its website. On 2/12/21 at 5:30 AM EST. See also Suzanne Oboler, 1995, Ethnic Labels, Latino Lives (Minneapolis: University of Minnesota Press); Renee Stepler and Anna Brown, 2016, Statistical Portrait of Hispanics in the United States, Pew Research Center, April 19; and G. Christina Mora, 2014, Making Hispanics: How Activists, Bureaucrats, and Media Constructed a New American (Chicago: University of Chicago Press). In 2012, there were six black Fortune 500 CEOs. 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. In addition to being a moral imperative, research suggests that increased diversity helps companies succeed financially. Besides English, other commonly spoken languages by this part of the population ages 5 and older include French or Haitian Creole (2%), Spanish (1%) and Amharic and other Ethiopian languages (1%). 2020. 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). E-mail: bschrotenb@usatoday.com, Less than 2% of top executives at the 50 largest companies are Black. First published on December 9, 2019 / 5:32 PM. Another metric that helps reveal the long-term patterns is the number of new Fortune 500 CEOs appointed each year (as opposed to the number who were in office in a given year). Market data provided by ICE Data Services. The average Fortune ranking for the South Asians has been 239, and the median ranking has been #242. Two Black women were among the group. Jung's father was an architect, and her mother was chemical engineer (and a pianist). 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. 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. As can be seen in Figure 1, the slow increase in New CEOs, from a total of 19 in 2000 to 71 in 2020, has been accompanied by a corresponding steady decrease in the number of white male CEOs. Perhaps even more important in terms of rising to the very top of U. S. corporations, they share a class and educational background with the privileged white men who sit on the boards of Fortune 500 companies who appoint them as CEOs. When Don Thompson assumes his new title as CEO of McDonald's. Very few African Americans make it within striking distance of the executive suite, two or three salary grades below Fraziers senior team. The mean Fortune ranking for the 20 African-Americans was #188, and the median was #82, both of which were far lower than for any of the other groups. Just four black CEOs run Fortune 500 companies in America, and they are speaking out about racial inequality following the death of George Floyd. Lanham, MD: Rowman & Littlefield, p. 68. Born in Madras in 1955, she majored in physics, chemistry and mathematics at Madras Christian College. Black CEOs will lead just .8 percent of America's top companies once Thompson steps down. 3 generations share their truth about being black in America. In the five-month period prior, they only hired 38. She was born in a small town in southeast China to a family with no education. The general fertility rate among Black women ages 15 to 44 is 5.9%. 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). 30% of all S&P 500 directors in 2021 were women. Nike ran a video on social media in which the apparel giant asked the audience not to pretend theres not a problem in America.. The total Black Hispanic population is young and growing. I made a mistake in having a relationship with this woman and I dealt with that in my personal life at the time."[3]. For example, Christine Leahy, CEO of CDW (#178 in 2020), played lacrosse and field hockey at Brown, and 6'2" Gail Boudreaux, the CEO of Anthem (#29), was an all all-Ivy League basketball player three years in a row at Dartmouth and won four straight Ivy League shot put titles. It is very difficult to get information about the class backgrounds for some of them, so generalizations must be made with caution. There were five African-American CEOs in 2004, and there were five in 2020. 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. New York City is the metropolitan area with the largest share of the nations single-race Black population, with roughly 3.1 million. In some cases, companies also list other top-paid officers who recently left. 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. Read our research on: Election 2022 | Economy | Abortion | Russia | COVID-19. Today there are three: Kenneth Frazier of Merck, Roger Ferguson of TIAA and Marvin Ellison of home improvement giant Lowe's. In April 2020 she took a leave of absence for undisclosed health reasons. In addition, in this paper I'll compare these 151 New CEOs who have made it to the top of these giant, very hierarchical, corporations, with the similarly "new" members of Congress, the white women and people of color who have been elected to the Senate and the House. Journal of Applied Psychology. [3] Jide Zeitlin's letter posted on LinkedIn can be seen here: https://www.linkedin.com/pulse/my-story-jide-zeitlin/. The pipeline, therefore, does not provide encouragement. That's four black leaders among. Definition, Statistics, and Impact, Racial Bias in Medical Care Decision-Making Tools, Discrimination in Insurance Underwriting Guidelines, The Insurance Industry Confronts Its Own Racism, What Is Redlining? The page was updated to reflect Nikes current Executive Leadership Team, the company said in a statement to USA TODAY, noting the recent promotion of two of those executives. I thought this was the beginning of a wave of African American executives coming into the C-suite, Parsons said. In all, 20 African-Americans were Fortune 500 CEOs between 2000 and 2020, 18 men and two women (neither of whom was still in office in 2020). 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. This year, after George Floyd, a Black man, died under the knee of a white policeman in Minneapolis, Nike announced a $40 million commitment to the Black community, declaring that it will "never stop striving to role model how a diverse company acts. Nike even has three Black directors on its governing board of 12. They concluded: "Minority leaders face challenges that begin at the point of promotion and go beyond underrepresentation. Although Clifton Wharton, an African-American man, was the CEO of TIAA from 1987-1992, TIAA did not make the Fortune list until 1998, when he no longer was CEO. The Black population of the United States is growing. Powered and implemented by FactSet. Black lives matter. The average Fortune ranking for the Latinx CEOs was 268, and the median ranking was #250. It also has added two Black members to its board since last year. So, too, in late July, when Jide Zeitlin resigned as CEO of Tapestry, did the author of a July 22 New York Times article make the same mistake. A third identify as unaffiliated (33%), while smaller shares identify as other Christian denominations (2%) or follow non-Christian faiths (6%). [37] Are these differences statistically significant? The numbers aren't much better on the rungs of the ladder leading to that role. 201-202).[23]. In addition, there are people with multiple racial identities in their family history who do not describe themselves as multiracial. The increases for white women and African-Americans are quite small, and the decreases for Asian-Americans and Latinos indicate that the executive ranks right below the CEO continue to be filled mostly with white men. Artemis 1 moon ship returns to Earth with picture-perfect splashdown, Suspect in 1988 Lockerbie bombing now in U.S. custody, Family of American held in Iran urges Biden to do more to secure release, Alexandra Pelosi on her parents' lives in the political realm, Schiff says Jan. 6 committee's probe "far out ahead" of Justice Department, Elon Musk targets Dr. Anthony Fauci in viral tweet, Arizona Gov. "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. Investopedia requires writers to use primary sources to support their work. In 2021, women earned 90% of what men earned. 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. The goal of DEI is to hire a diverse workforce, give workers a voice, and include workers in business happenings. 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. Texas is home to roughly 250,000 multiracial Black people, while Florida has roughly 240,000. Crist|Kolder Associates Volatility Report 2021. Business. This fact confirms Black power, perseverance . 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. If anything, the ranks of those who have occupied the corner office appear to bethinning. As one of just a handful of Black women to ever serve as a Fortune 500 CEO, Burns says the slow progress that's been made around gender and racial diversity puts corporate America at the last. There are 134,000 Black-owned businesses in the United States, employing 1.3 million people. Lets Close the Gap on Board Diversity. Today, Frazier, 65, also is chairman of Mercks board of directors and is one of two Black people to sit on the board of ExxonMobil, another top-50 company with all-white leadership amongfive top executives listed on its proxy statement. Some view the 67-year-old Fortune 500 list as a barometer for leadership diversity in the countrys largest companies. In 2020, 7 of the 10 new appointments were white women. The larger implication, however, has to do with the predominant whiteness of Fortune 500 CEOs. as you said, made up of African-American corporate executives, Fortune 1000 . Additionally, a study by Boston Consulting Group concluded that greater minority representation at the top also leads to more innovation. A third (33%) have completed some college and 45% have, at most, graduated from high school or equivalent. When you see someone who looks like you and who speaks like you, its almost like this superpower that encourages you to reach similar heights, he said. Besides that, younger multiracial people are more likely to identify with multiple racial or ethnic identities, on forms or otherwise. "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. 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. How Diverse Leadership Teams Boost Innovation., Fortune. Black Americans are diverse. Consumer brands are often accused of sidestepping controversy. They differ from the white women and the African-American CEOs, but are similar to the Asian-American CEOs, in that many were born outside the United States, and many are bilingual or multilingual. As the nation gets less white and more diverse, corporate America will need to adapt to better serve that changing market. The question is whether such progress will be sustained over time. People see them and want to be them.. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The recruiting platform BoardProspects reported that companies in the Russell 3000 index named 130 Black directors in the five months following Floyds death. Almost three-in-ten (28%) make $75,000 or more, including 18% that make $100,000 or more. New York is the top state of residence for the Black Hispanic population, with roughly 450,000 people. Other top metropolitan areas include Miami (100,000), Boston (100,000) and Los Angeles (70,000). Cisco said that means a 25% increase in representation of Black employees from entry-level through manager level and a 75% increase in representation of Black employees from director to vice president+ by 2023.. Florida comes in a close second with 3.8 million, and Georgia comes in third, with 3.6 million. In 2021, 6.9% of companies were led by female CEOs, and 15.1% had female CFOs. But where did it all start? Longtime PepsiCo CEO Indra Nooyi will step down in October . 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. Thats much tougher than just giving money. 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). The longest time in office was Indra Nooyi, CEO at Pepsico for twelve years, and Rajiv Gupta, the CEO of Rohm and Haas, for ten years, from 1999-2009 (#409 in 1999, #281 in 2009). In June 2020, I spoke with a reporter for the Wall Street Journal who was writing an article on the decline in the number of African-American CEOs in the Fortune 500 in recent years. In order to present detailed data about this group, charts and analysis about the Black population are analyzed through the lens of four different demographic groups: Scroll down or click through the navigation bar on the left to see various demographic and economic characteristics of the U.S. Black population. The analysis presented in these fact sheets about the Black population in the United States uses the latest demographic data available. Get browser notifications for breaking news, live events, and exclusive reporting. Yet, the report from Crist|Kolder Associates found that only 20 Latinx/Hispanic people served as chief executive officers (CEOs) in 2021down from 23 the year before. He said hes called on his team to come up with a plan to advance African Americans and will tie their compensation to results. The Center for Talent Innovation's "Being Black in . 2014. As Ramon Gutierrez explains in an essay titled "What's in a Name? After various positions, mergers, and acquisitions, she emerged as the newly appointed CEO. 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). Intermountain Healthcare names Robert Allen president and CEO. Legal Statement. 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%. When it comes to states of residence, Texas is home to the largest Black population, at about 3.9 million. As can be seen, the percentages remain quite small. CHRISTOPHE ARCHAMBAULT, AFP via Getty Images, Kimberly White, Getty Images for New York Times, ANDREW CABALLERO-REYNOLDS, AFP via Getty Images, Technology company Cisco has no Black members on its board of directors or among its six executive officers, Kenneth Frazier is leaving, becomes executive chairman, predominantly white and Asian male makeup of its workforce, to add new board members Paula Price and Derica Rice, Your California Privacy Rights/Privacy Policy. She was the first in her family to earn a college degree she received her BA in industrial engineering from the University of Miami, and then an MBA from Nova Southeastern. And the overall number is down from 7 Black Fortune 500 CEOs almost a decade ago. Other top metropolitan areas include Atlanta, Washington, D.C., Chicago and Philadelphia. What's Included and History, What Is the Equal Credit Opportunity Act (ECOA)? Why does it matter? By 1985 he was the general manager of Coca-Cola Turkey and Central Asia (living in Istanbul), by 1988 he was the vice president of Coca-Cola International (living in Vienna), and by 1995 he was general manager of Coca-Cola Amatil-Europe. [32] Richard L. Zweigenhaft and G. William Domhoff. 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. Here, in alphabetical order, are nine of the top Black CEOs of 2022. The next wave of women included more who had played sports in high school and some who had played in college. 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. There have been only 18 Black chief executives of Fortune 500 companies since 1999. They are Muhtar Kent, the CEO of Coca-Cola from 2008-2017 (#83 in 2008, #64 in 2017), Nazzic Keene, who became the CEO of Science Application in 2020 (#466), and Dara Khosrowshahi, who became the CEO of Uber when it first made the Fortune list in 2020 (#228). [13], The other Latina is Cheryl Miller, who became the CEO of Auto Nation in July 2019 (#154). Many of the men either founded, or co-founded, their companies. 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). The peak year for representation was 2012, when a still-anemic total of six Black CEOs led corporate America's most prominent companies. Just four black CEOs run Fortune 500 companies in America, and they are speaking out about racial inequality following the death of George Floyd . 1. Ford and her wife, Jill Schurtz (a West Point graduate, and a lawyer), are raising three teen-age daughters. Ramon A. Gutierrez and Tomas Almaguer (Oakland: University of California Press), 20-21. Crist|Kolder Associates Volatility Report 2021.. At 41, Women are still the minority; we'll . The trend clearly shows that over time there have been fewer East Asian CEOs and more South Asian CEOs. Not long thereafter, the CEO announced that he was resigning as CEO and from the Board "immediately." Specifically, diversity refers to the numerous ways that people differ, such as race, ethnicity, nationality, age, gender identity, physical ability, mental ability, socioeconomic status, experience, and education (among others). As of Dec 7, 2022, women were CEOs at 9.4 percent of Fortune 500 companies. 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 . In 2014, Apple made similar adjustmentsto its executive staff page online, adding photos ofexecutives, including two Black women, soon after the release of a report that detailed the predominantly white and Asian male makeup of its workforce. There were five, not four."[19]. Smiths message to corporate America in 2020: Move beyond the hashtag activism. Their international origins, the fact that many have lived all over the world heading up countries or regions for multinational corporations, their ability to speak more than one language, and their general worldliness reminds us that the Fortune 500 are very much a part of a global economy. What about the wife he met at Harvard, Tina Goldberg? See also: Richard L. Zweigenhaft and Kyle Riplinger. Six were born in Spain, five in Cuba (three more were Cuban Americans born in the USA), three in Argentina, three in Mexico, two in Venezuela, two in Brazil, two in Puerto Rico; other countries of origin include Chile, Colombia, Costa Rica, and Morocco. Fewer than a quarter (24%) are part of non-family households. As can be seen in Figure 4, the gradual increase in the number of women CEOs is much less impressive when compared with the higher percentages of women in the Senate and the House (neither of which has begun to approach gender equity). 201-202. Thats the next step. Survey Reveals Top Concerns of HR Executives in America, Page 1. Money is important but its not going to solve this problem all alone. "[20] Perhaps academics like me, various journalists, and others simply have missed that Ren Jones is African-American because he is so light-skinned. When Marvin Ellison takes the reins of J.C. Penney in August, that share will grow to 1 percent. In 2019, there were 46.8 million people who self-identified as Black, making up roughly 14% of the country's population. Allegations about racial exclusivity at the top still have been an issue recently, including in an online letter June 1 from former Nike manager Danny Tawiah. I also did not include two outliers, founders of their companies, who were CEOs for 33 and 24 years, far longer than anyone else in the sample Marion Sandler, co-founder of Golden West Financial, CEO from 1973 to 2006, and Charles Wang, the founder of Computer Associates International, from 1976 to 2000 (so he was CEO only for one year in the time frame I used). Most did their undergraduate work abroad (seven at the elite Indian Institute of Technology) and then came to the USA for graduate work. Proceedings of the National Academy of the Sciences, PNAS March 3, 117 (9) 4590-4600; first published February 18, 2020; https://doi.org/10.1073/pnas.1918896117. Photos (left to right): NRG, Chief Executive, Fortune. 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. Therefore, ironically, both his parents are now Jewish, but he is not. "[24], In September 2020, Citigroup announced that Jane Fraser, born in Scotland and educated at Cambridge University in England before attending the Harvard Business School, was to become their next CEO, starting in February 2021. 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. These are defined by their birth years and ages in 2019 as follows: There were 46.8 million people in the U.S. who identified as Black in 2019. Only 1% of the Fortune 500 CEOs are African-Americans, 2.4% are East Asians or South Asians, and 3.4% are Latinx. Some corporations reacted to Floyds death in May by setting public goals and timetables. Also this month, Bank of America pledged $1 billion to help communities address economic and racial inequality; Goldman Sachs created a $10 million fund for racial equity; and the CEOs of JPMorgan Chase, Citigroup, and Wells Fargo have also made statements denouncing racism and discrimination. They have cultural backgrounds that are quite different from the "East Asians," the Chinese Americans, Japanese Americans and Korean Americans who were central to the Asian-American category that was created in the late 1960s and widely used for the next several decades. Florida is home to the second-highest number of this population, with 260,000, and California comes in third with 240,000. Diversity in the Power Elite: How it Happened, Why it Matters. 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. 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. The New CEOs, p. 200 for the list of the 25 companies. [9] Carten Cordell. Others, however, have revealed either no information or only bits and pieces. Chief information officers are most in-demand in New York, NY. It also includes Hispanics or Latinos who say their race is Black. Most speak both Spanish and English, and some emphasize in their biographical sketches that they speak more than two languages. Chenault (who was only the third black CEO to run a Fortune 500 company) was eventually joined by Don Thompson at McDonald's, Ursula Burns at Xerox, Roger Ferguson at TIAA-CREF, Kenneth Frazier. All five of the top executive officers are white, a common reality in corporate America more than 55 years after the Civil Rights Act. That executive, David Drummond,left Alphabet in January, according to the company'sproxy statement. Click here for a downloadable spreadsheet of these findings. 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. Su's father was a statistician and her mother an accountant. 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. "Nazzic Keene will soon lead the massive contractor she helped create," Washington Business Journal, June 28; https://www.bizjournals.com/washington/news/2019/06/28/nazzic-keene-will-soon-lead-the-massive-contractor.html, [10] Kari Paul and Julia Carrie Wong, 2020, "California Passes Prop 22 in a Major Victory for Uber and Lyft," The Guardian, November 4; https://www.theguardian.com/us-news/2020/nov/04/california-election-voters-prop-22-uber-lyft. It didn't take very long for Benzinga to identify dozens of the top African-American heads of big-name American firms, despite an overall lack of representation in the higher levels of business. "Companies are missing out on amazing talent at the top of their organizations, and black professionals are not given the opportunity to fulfill their aspirations," Julia Kennedy, the center's executive vice president, said. [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. Download this app from Microsoft Store for Windows 10 Mobile, Windows Phone 8. Stakeholder capitalism is a system in which corporations are oriented to serve the interests of all their stakeholders. These changes, in turn, may impact how many people identify as Black (or any other race). They also found that when they were replaced, women and minority CEOs were especially likely to be replaced by white males (which they call the "savior effect").[35]. Roughly 45% of the Black Hispanic population was below the age of 20, and 5% were 65 or older. 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. Wat, however, grew up in real poverty. The impact of organizational performance on the emergence of Asian American leaders. Meet the 16 Hispanic CEOs of top S&P 500 Companies While this represents a positive trend, the number is still small. 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. It recently set goals to increase the representation of Black employees at all levels of the company. 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. Six of the 20 South Asians have been CEOs of companies in the top 100, including Vikram Pandit, CEO at Citigroup from 2007-2012, Satya Nadella, CEO at Microsoft since 2014, and Sundar Pichal, CEO at Google since 2015. There have been 41 Latinx CEOs of Fortune 500 companies since 2000: 39 men and two women. As we showed in an empirical study that used the photographs of white, African-American, Asian-American, and Latinx CEOs, published as an appendix in The New CEOs, Kyle Riplinger and I found that college students rated the photos of the Latino Fortune 500 CEOs as much closer in skin color to the whites than to the Asians or African-Americans. Fully 28 (or 38%) have MBA degrees, five have JD degrees, and others have masters or PhD degrees. 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. 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. How many times do you have to hear how women of color, men of color are being ostracized in your company? But several assumed an advocacy role in the wake of George Floyds killing in 2020. 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. See Lawrence Mishel and Jori Kandra, 2020. Inclusion is the extent to which team members feel a sense of belonging and value within an organization. So what is he supposed to do as a Black businessman who has served as a member of several companies boardrooms? 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). It also puts corporations at a disadvantage. Today, there are five Black CEOs in the 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). An additional 24% were Millennials, meaning 75% of the Black Hispanic population was 38 years of age or younger that year. Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports. When his venture capital-backed company hit hard times, Robinson, 37, went without a salary to keep Hingeto afloat long enough to sell it. News provided by The Associated Press. [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. Barbara Smith, CEO of Commercial Metals (#491), was one of nine children, but she reports that her grandfather and her father owned "several" businesses. He left Coca-Cola to work in Turkey for six years, and then returned in 2005 where he was responsible for all of Coke's operations outside North America. Latino Voices: Mexican, Puerto Rican, and Cuban Perspectives on American Politics (Boulder, CO: Westview), 13-14. The average age of an employed chief executive officer is 52 years old. 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. The median household income for Black households in 2019 is $44,000, which means half of households headed by a Black person earn more than that and half earn less. [8] The British Raj, or the rule by the British Crown that lasted from 1858 to 1947, often called British India, included what is now considered India, Pakistan, Bangladesh, and Burma. Black CEOs: Among Fortune 500 companies, less than 1% of CEOs are black. According to Equilar, a clearinghouse for corporate leadership data, 29.6% of companies on the S&P 500 do not have at least one Black board member. Last week, Merck CEO Kenneth C. Frazier announced his plans to retire in the spring. In all 279 listed executives appear on the 50 proxy statements examined by USA TODAY. Third-culture kids. In total, the Amazon community gave $27 million to 12 organizations that the Black Employee Network (BEN) helped choose. 2019. 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. NEW YORK (CNNMoney) -- The United States government has a black chief executive. Finally, Jennifer Johnson, CEO of Franklin Resources (#493) is the granddaughter of the founder of the company; her father was the CEO for many years, then her brother became CEO, and now she has succeeded her brother. "The 14 longest-serving CEOs of the Fortune 500, Fortune, May 5; https://fortune.com/2015/05/05/14-longest-serving-ceos/. This marks a 29% increase since 2000, when there were roughly 36.2 million Black Americans. The issue is they dont know em, and they dont have a vehicle to get comfortable with people in the candidate pool.. Flexible Citizenship: The Cultural Logic of Transnationality, Durham, NC: Duke University Press. He is not. Roughly one-in-five (21%) are unaffiliated with any particular religion, while smaller shares of adults identify as Catholic (6%), other Christian denominations (3%) or non-Christian faiths (3%). [17] Rodolfo de la Garza, Louis De Sipio, F. Chris Garcia, John Garcia, and Angelo Falcon. 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. 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. Part of this is due to expansions in how the Census Bureau asks about ethnic and racial identity. Its Time for Action. In 2007 she left to work at PG&E. That is, they were from the upper 15% of the class structure as defined by Dennis Gilbert in his book, The American Class Structure in an Age of Growing Inequality, 9th Edition. But according to its most recent proxy statement, none of its top five executive officers is Black. And there is no shortage of minority candidates who can compete for these jobs, Parsons said. 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. A diverse workforce allows companies to benefit from a variety of perspectives. The terms Black population and Black people are used interchangeably in these fact sheets. She helped her working mother raise her two younger sisters, and then she attended the University of Arizona where she majored in information technology in an emerging academic department called the Department of Management Information Systems. But 99% of the nation's largest businesses do not. 2019. This is an increase from 2000, when 2.4 million people, or roughly 7%, among the Black population were foreign born. She worked there for more than a decade, worked for Ernst and Young, and then was hired by American Management Systems. Just four black CEOs run Fortune 500 companies in America, and three of them are speaking out about racial inequality following the death of George Floyd. In 2016, in an article that I wrote which drew on these concepts of third culture kids and the flexible immigrant, I made what turned out to be a good prediction, when applied to Jide Zeitlin: "future black Americans who become CEOs might turn out to be immigrants from elite backgrounds in the West Indies or Africa. In order to update this earlier work on the pipeline, I once again turned to the photos of the leadership teams of Fortune 500 companies. In one of the most comprehensive studies of what they call "glass cliff theory," Alison Cook and Christy Glass looked at all CEO transitions over a 15-year period. Among the privileged are those whose fathers founded the companies they now lead (for example, Joseph Molina was the CEO of Molina Healthcare from 2012 through 2017 [#156 in 2017], a company his father, a Mexican-American physician, had founded, and Jose Mas became the CEO of Mastech in 2018 [#428], a company his Cuban-American father founded). Facebook has pledgedtoemploy 30% more Black people in leadership positionsover the next five years. A separate look at the New CEOs for each group reveals very different patterns between the groups, and in some cases, within the groups. 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