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. 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. [23] Lois Weis, Kristin Cippoloni and Heather Jenkins. And why do they accept these especially challenging jobs? Born in India, he is the son of a general in the Indian army who moved around a lot during Banga's childhood. 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 Theseregulatory filings show compensation for the top executives, amongother corporate matters, to help shareholders make informed decisions at stockholder meetings. 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). 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. Sen's father was a highway engineer. Parsons says he's old enough to "have been at this place before" in the late 1960s and early 1970s. Corporations are hunting for Black executives to serve on boards of directors and for recommendations for top openings. Get browser notifications for breaking news, live events, and exclusive reporting. MORE IN THIS SECTION HBCUs and HSIs Benefitted She attended a Catholic high school, and received her BA in engineering from NYU. Just as it became clear that the distinction between East Asians and South Asians was important as we looked at pathways to the CEO office, so, too, does it appear that the umbrella term Latinx masks an important distinction. More than 100 candidates from underrepresented groups were hired with no quotas. This is an increase from 2000, when 250,000 people, or roughly 16%, among the multiracial non-Hispanic Black population were foreign born. Its important to mention that there has been a growth in the share of people in the United States not just Black Americans who identify as multiracial in recent years. 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). The average Fortune ranking for the Latinx CEOs was 268, and the median ranking was #250. Texas is home to roughly 250,000 multiracial Black people, while Florida has roughly 240,000. Almost all of those for whom I could find information were, or had been, married, and most had children. The average age of an employed chief executive officer is 52 years old. However, the number of Black CEOs remained virtually the same, oscillating around four to seven CEOs for the past 18 years. 2014. This group consists of people with varied racial and ethnic identities and experiences. 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. 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%). Yet, only 16 percent of nonprofit CEOs in New York are people of color. So, too, has the number of Black CEOs remained flat (between 2% and 3.5%). 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 median household income for Black Hispanic households is $48,900, meaning half of households with a Black Hispanic householder earn more than that and half earn less in 2019. Boston Consulting Group. 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 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. 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. The graph in Figure 1 indicates that the number of white males has decreased from 96.4% in 2000 to 85.8% in 2020. 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. See also: Sapna Maheshwari, 2020, "Tapestry CEO resigns, acknowledging past relationship," New York Times, July 21 (https://www.nytimes.com/2020/07/21/business/tapestry-jide-zeitlin-resigns.html); and William Cohan, 2020, "The bizarre fall of the CEO of Coach and Kate Spade's Parent Company," Pro Publica, July 22 (https://www.propublica.org/article/the-bizarre-fall-of-the-ceo-of-coach-and-kate-spades-parent-company). [18] I had missed one: Ren Jones, the CEO of M&T Bank (#462). 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. 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. Among racial and ethnic minority groups, only Asian American executives came close to their relative share of the U.S. population, with 6.8% of top leadership roles. Crist|Kolder Associates. 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. In Figures 4 and 5, below, I have graphed the percentages of women and African-American CEOs, Senators, and members of the House of Representatives (I have not done this for Latinos and Asian-Americans because so many of the CEOs in those two categories have been foreign-born; they would, however, show similar patterns). 100-101. ", Follow reporter Jessica Guynn @jguynn. They became his legal guardians, and later adopted him. [32] Richard L. Zweigenhaft and G. William Domhoff. Spanish is spoken by 2% of the multiracial Black population in the United States. Amazon Donates $10 Million to Organizations Supporting Justice and Equity., Spencer Stuart. Three of the four women come from privileged or relatively privileged backgrounds. Similarly, at telecommunications company Verizon, athird of Verizon's nine board members are Black. Of course, the addition of new directors from underrepresented groups is hampered by persistently low boardroom turnover. Black CEOs will lead just .8 percent of America's top companies once Thompson steps down. They note that only two of the women and minority CEOs in their sample, but 24 of the white men, had been appointed in the previous year or so, and that this may have decreased the average tenure for both groups, but especially that of the white men. Fewer than a quarter (24%) live in non-family households. 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. : Meaning and Positions Defined, Americas most influential companies are placing a greater emphasis on racial equity. Class Warfare: Class, Race, and College Admissions in Top-Tier Secondary Schools, Chicago: University of Chicago Press, pp. 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. 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. This chart shows the number of companies with ethnically and racially diverse CEOs from 2004 to 2021. Therefore, ironically, both his parents are now Jewish, but he is not. Even small changes to senior teams can generate gains, the study found. Thats the next step. "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. Almost three-in-ten (28%) make $75,000 or more, including 18% that make $100,000 or more. Click here for a downloadable spreadsheet of these findings. 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. There had been as many as seven for a few years, and the number dipped to three and four in some years. The company website lists an 18-member executive team with one Black member: Maxine Williams, the companys chief diversity officer. 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. The lone Black CEO among the top 50 companies reviewed by USA TODAY is Kenneth Frazier of Merck, the pharmaceutical giant. After leading one of its companies, Old Navy, she became the CEO in March 2020 (#199 on the Fortune list). 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). When Kamala Harris became Vice-President, the number of African-Americans in the Senate dropped briefly from three to two, but in her role as Vice-President she then swore in Raphael Warnock, a Black man who won the run-off election in Georgia, and the number of African-Americans in the Senate was again three. And we have expanded our list from 100 senior managersour number in 2009 and 2012to 300 top executives. This time, I started by looking at the 22 companies in the top 25 that provided photos and biographical information. Regionally, the highest concentration of Black people in the U.S. in 2019 is in the South. This marks a 29% increase since 2000, when there were roughly 36.2 million Black Americans. 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). Roughly three-in-ten single-race Black people (33%) live in households with female heads of household, and 6% live in male-headed households. 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. In a statement, Netflix told USA TODAY that in the past three years in the U.S., it has made strides, increasing the number of Black American vice presidents from three to nine and the. 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). 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 . By the 10th Century, hanging from gallows was the most frequent execution method. It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. 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 most populous metropolitan area of residence for all Black people in 2019 is New York City, with 3.8 million. Employed Persons by Detailed Occupation, Sex, Race, and Hispanic or Latino Ethnicity, Page 1. 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). 124,004 The number of Black-owned employer businesses in the United States in 2017. Further analysis shows that half of Black Hispanic households earn less than $50,000, while 49% make over $50,000. Understanding Organizational Barriers to a More Inclusive Workplace, How Diverse Leadership Teams Boost Innovation, The Female CEOs on This Years Fortune 500 Just Broke Three All-Time Records. Additionally, roughly one-in-five multiracial Black people (22%) live in non-family households. Roughly a quarter (24%) live in the Midwest, one-in-five live in the West and 16% live in the Northeast. Its not that corporate America is lacking for Black executive talent, says Barry Lawson Williams, a retired Black businessman who has served on more than a dozen public company boards. At the same hearing, Bank of America CEO Brian Moynihan highlighted his company's diversity data. CORRECTION: A previous version of this story listed Marvin Ellison as CEO of J.C. Penney. Equal Employment Opportunity Commission. Definition, How It Works, and Example, What is the C Suite? This compensation may impact how and where listings appear. 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. There is a reason why so many Americans don't trust to government to use their tax dollars wisely. 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. Ultimately, he revealed his actual identity to her, and the relationship ended. 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. http://whorulesamerica.net/power/diversity_update_2020.html. For Black people, that ratio is 105 to 1. 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. 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. . Barbara Smith, CEO of Commercial Metals (#491), was one of nine children, but she reports that her grandfather and her father owned "several" businesses. Netflixs website now shows her as the only member of its management team of eight who is not white. Wat, however, grew up in real poverty. 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. 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. An additional 24% were Millennials, meaning 75% of the Black Hispanic population was 38 years of age or younger that year. 2016. This population has grown from roughly 1 million in 2000 to 2.4 million in 2019, marking a 145% increase. But how to break through the Black ceiling? None of the 13 East Asian CEOs has led a company in the top 100 (the East Asian CEO who led the highest-ranking Fortune company was Richard Hamada, CEO of Avnet from 2011 through 2016 it was #132 in 2011, and #102 in 2016). The final sample of twenty-five companies included such well-known names as Bank of America, General Electric, MasterCard, Staples, Verizon, and Western Union.[31]. The page had shown the photos of 10 people, all white, until mid-July when the photo line-up changed. 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. Since then, this number rose by 5% to 41 as of 2021. What Is the Racial Wealth Gap? There were five, not four."[19]. In all 279 listed executives appear on the 50 proxy statements examined by USA TODAY. 2020. Over the complete history of the Fortune 500, which dates back to 1999, there have only been a total of 19 Black CEOs leading America's Fortune 500 companies. Florida comes in a close second with 3.8 million, and Georgia comes in third, with 3.6 million. In some respects, Americas most influential companies are placing a greater emphasis on racial equity than ever before. The trajectories for white women and people of color as CEOs are summarized in Figure 1. The fertility rate among Black Hispanic women in the U.S. ages 15 to 44 is 5.2%. As chart 1 shows, Blacks' labor force growth outpaced their population growth in the 1976-86 and 1986-96 decades, leveling off and slowing after . While at Harvard he met Tina Goldberg, they married, and have two children. Impact of George Floyds Murder and Black Lives Matter Movement on Board Diversity., USA Today. These changes, in turn, may impact how many people identify as Black (or any other race). 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. Many of these CEOs are helping to pave the way for others in minority communities to succeed. 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. Despite spending millions on corporate diversity efforts, U.S. companies aren't retaining black professionals or promoting them to top positions, causing many of those workers to walk out the doors in frustration, according to a newreport. Roughly one-in-five Black Hispanic people lived in non-family households. Washington, who in 2018 interviewed nearly 60 black female executives about the intersectional invisibility they experienced at work, said they were intentional about coming in with a plan and. But none of the fivetop executives listed on the company's proxy statement is Black. [1] Dennis Gilbert. The numbers aren't much better on the rungs of the ladder leading to that role. 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. Additionally, 130,000 members of this population were born outside of the country, meaning that 4% of the multiracial Black population is foreign born. 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. Of the racial and ethnic minority groups, Asian Americans, who comprise 5.9% of the U.S. population, had the most representation at the CEO level: 40 during 2021 and 41 the year before. Today's Education 65.3: 103-105. 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"). Crist|Kolder Associates Volatility Report 2021. He declined to name the companies he's left. E-mail: bschrotenb@usatoday.com, Less than 2% of top executives at the 50 largest companies are Black. 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. This is an increase from 2000, when roughly 260,000 people, or about 27%, among the Black Hispanic population were foreign born. There have been 41 Latinx CEOs of Fortune 500 companies since 2000: 39 men and two women. 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). Some of the country's most prominent black corporate leaders are weighing in publicly on the protests gripping the U.S., drawing from their own personal histories as they call for unity and seek . The New CEOs: Women, African American, Latino, and Asian American Leaders of Fortune 500 Companies (Lanham, MD: Rowman & Littlefield), pp. Lisa Su, a Chinese American born in Taiwan, became the CEO of Advanced Micro Devices (AMD) in 2014, and was still the CEO in 2020 (#474 in 2014, #448 in 2020). His father, an African-American sergeant in the U. S. Army who served under George Patton in World War II, met and married a Belgian woman. 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. His father, Arnold, is Jewish, but his mother, Marian was not. 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. [38] Seval Gndemir, Andrew M. Carton, and Astrid C. Homan. "Attaining a senior leadership role takes a much longer time to accomplish and the expertise needed to occupy the position is usually either company or industry-specific," said Rosette, professor and senior associate dean at the Fuqua School of Business. [24] Richard Zweigenhaft. Consumer brands are often accused of sidestepping controversy. ", "Its one thing to add a Black member to your board or to promote at least one African American to the (executive suite) so you have numerical cover," Dick Parsons, senior adviser at asset management firm Providence Equity, told USA TODAY. As of mid-2021, just four Black CEOs are heading up companies in the Fortune 500. Their multicultural and often multilingual upbringing provided them with certain advantages, especially when it came to functioning effectively in differing cultures. Improving diversity at the top of the ladder makes our country stronger and provides role models for the next generation, he said. One of Nikes board members, John W. Rogers Jr., said that Nike CEO John Donahoe has transformed his team after taking over in January. Last month, Netflixhired prominent Black executive Bozoma Saint John as its chief marketing officer. Since 2000, there have been 151 white women and people of color appointed CEOs at Fortune 500 companies. It turns out that to have a level playing field, you have to go out and search for candidates who can compete. Roughly a third (32%) have completed some college, and 45% have, at most, graduated from high school or equivalent. He earned both his Bachelor of Science in business administration and his Master of Arts in communication from Marquette University. This entire, rancorous debate should refocus on three words: Black Success Matters. She received a BA from Wisconsin and an MBA from Northwestern. [12] The first was Cuban-born Geisha Williams, who became CEO at PG&E in March 2017 and held that position until the end of 2018 (#157 in 2017, #168 in 2018). Of the groups I have looked at, the 20 African-American CEOs are the least likely to have been born to privilege. 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. / MoneyWatch. 1992. website. The Joint Commission to add health equity standards to . 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. 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. Not quite one in five (18.8%) were white women, 7.8% were Asians (mostly men), and 4.2% were Hispanic (mostly men). However, an individuals racial and ethnic self-identification may not be fixed and instead can change over time. Thirty percent of Fraziers senior team is African American. The most striking feature of the line in Figure 3 for African-Americans is how flat it is. In 2021, 6.9% of companies were led by female CEOs, and 15.1% had female CFOs. [9], Dara Khosrowshahi, like Muhtar Kent, is part of a small (but increasing) number of CEOs of Fortune 500 companies who grew up in what can be considered the "global elite." All five of the top executive officers are white, a common reality in corporate America more than 55 years after the Civil Rights Act. Investopedia requires writers to use primary sources to support their work. The share of female CEOs of Fortune 500 companies reached an all-time high of 7.4% in 2020, with 37 women heading major firms. The averages were 4.8 years for the 16 African-American former CEOs, 6.4 for the 8 East Asian CEOs, and 7.1 for the 14 South Asian CEOs (I included the three who did not fall neatly into either East or South in this group for this analysis), and 5.7 for the 24 Latinx former CEOs, an overall average of 5.95 years. So, too, is skin color important, especially for Latinx. Diversity, equity, and inclusion (abbreviated as DE&I or DEI) refers to programs and policies that encourage participation and representation from diverse groups. 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 she stepped down as CFO at Family Dollar, she decided, as she puts it, to "semi-retire." 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. Thousand Oaks, CA: Sage. Its not that they get overlooked. I have seen people taking a stand and at least taking a side. New York City is the metropolitan area with the highest number of multiracial Black residents and is home to roughly 160,000 members. They suggested that their failure to find statistical significance was a result of their having included CEOs who had recently been appointed, and who therefore at the time of their research had very short tenures. Ford and her wife, Jill Schurtz (a West Point graduate, and a lawyer), are raising three teen-age daughters. Jung's father was an architect, and her mother was chemical engineer (and a pianist). The trend then evolved into an haute couture being a huge influence on the industry. When she was eight, Moammar Ghadaffi's Free Officers' Movement overthrew the Libyan government in a coup d'etat. In 2020, 7 of the 10 new appointments were white women. 2.1 million Most speak both Spanish and English, and some emphasize in their biographical sketches that they speak more than two languages. Why Are There Still So Few Black Executives in America?, McKinsey & Co. Understanding Organizational Barriers to a More Inclusive Workplace.. Their findings, coupled with the findings discussed above by Lu, Nisbet, and Morris, help to explain the underlying reasons for an ongoing bamboo ceiling for East Asians. 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. Georgia and Florida are home to the next largest populations of this population, with roughly 3.3 million single-race Black people each. After various positions, mergers, and acquisitions, she emerged as the newly appointed CEO. 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 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. 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. "The Short Tenure and Abrupt Ouster of Banking's Sole Black C.E.O.," New York Times, October 3; https://www.nytimes.com/2020/10/03/business/tidjane-thiam-credit-suisse.html, [27] David Gelles, 2020, "Corner Office: The CEO Who Promised There Would Be No Layoffs," New York Times, November 6; https://www.nytimes.com/2020/11/06/business/corner-office-ajay-banga-mastercard.html, [28] Sharon Austin, 2020, "A Record Number of women will serve in the 117th Congress, including at least 51 women of color," The Conversation, November 17; https://theconversation.com/a-record-number-of-women-will-serve-in-the-117th-congress-including-at-least-51-women-of-color-149736, [29] Center for American Women and Politics, 2021, "Women Serving in the 117th Congress 2021-22"; https://cawp.rutgers.edu/list-women-currently-serving-congress, [30] Ethan Cohen, Liz Stark, and Adam Levy, 2021, "117th Congress: Breaking Down the Historic Numbers," CNN Politics, January 3; https://www.cnn.com/2021/01/03/politics/117th-congress-historic-numbers/. More recently, many have adopted the term "Latinx" to acknowledge that not all people fall under the gender binary of male and female. Florida is home to the second-highest number of this population, with 260,000, and California comes in third with 240,000. For information on distinctive Jewish names, see Richard L. Zweigenhaft and G. William Domhoff (2018), Diversity in the Power Elite, Ironies and Unfulfilled Promises (3rd Edition), Lanham, MD: Rowman & Littlefield, pp. 165-176. 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. In April 2020 she took a leave of absence for undisclosed health reasons. Born in Madras in 1955, she majored in physics, chemistry and mathematics at Madras Christian College. 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. We also reference original research from other reputable publishers where appropriate. Moreover, they were by far less likely to correctly identify the ethnicity of the Latinos than those in any of the other groups, frequently misperceiving them as white. They concluded: "Minority leaders face challenges that begin at the point of promotion and go beyond underrepresentation. 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). Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. 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%). 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). 2019 CBS Interactive Inc. All Rights Reserved. 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). "[20] Perhaps academics like me, various journalists, and others simply have missed that Ren Jones is African-American because he is so light-skinned. 2014. It has grown from roughly 1.5 million in 2000 to 3.7 million in 2019, marking a 144% increase. His single mother commuted into Lagos to clean the house of Arnold Zeitlin, a journalist with the Associated Press, and his wife, Marian, whose father was the chair of the chemistry department at the University of Pittsburgh. "The rise and fall of diversity at the top: The appointments of Fortune 500 CEOs from 2005 through 2015," Who Rules America? Interestingly, although there have been relatively few African-American Fortune 500 CEOs, and the number at any given time has remained flat, a higher percentage of the African-American CEOs have been at larger rather than smaller Fortune 500 companies than any of the other groups in my sample. Marvin Ellison became the CEO of J. C. Penney's in 2015 (#250), and then became the CEO of Lowe's in 2018 (#42). Hower, the employment-to-population ratio for Black Americans has since gone up and stood at 57.7% in January 2022. 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. Legal Statement. 5 Anterior (a) and lateral (b) view of the cleft skull of an 18- to 23-year-old man . 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. [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. 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. 2019. 30.7% The percentage of the employed Black population age 16 and older working in management, business, science and arts occupations in 2019. In 2021, women earned 90% of what men earned. 1976. Since July 30, two other companies that didn't have any Black board members or top executives listed on their proxy statements announced they were adding Black board members. The study was funded by Disney, Pfizer and other major corporate players. Ren, now 55, is the youngest of their six children. 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. Today there are only 4 . 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. 04:49 - Source: CNN Top business . The 22 South Asian CEOs include 20 men and two women. In 2019, the single-race non-Hispanic Black population was the largest demographic subgroup of U.S. Black people, numbering 41 million fully 87% of the total Black population. Muhtar Kent is a Turkish American born in New York City when his father was the Turkish consul-general. The trend clearly shows that over time there have been fewer East Asian CEOs and more South Asian CEOs. McKinsey & Co. Delivering ThroughDiversity, Page 1 (Page 3 of PDF). Procter & Gamble announced last week the appointment of new board member Debra Lee, the former CEO of BET Networks. So, too, do these concepts apply to Dara Khosrowshahi, whose wealthy family left Iran for France and then USA, who attended the Hackley School and then Brown and Harvard, or Nazzic Keene, who spent her first five years in Libya but then spent much of her childhood in Tucson, Arizona. Nike, which had about 22% Black employees last year, said it continues to "sharpen our focus on hiring more Black leaders across all levels at the company.". Fortune reported in February 2014 that just over 4 percent of Fortune 500 . 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. When someone thinks about streetwear, they usually think of brands such as Supreme or A Bathing Ape. 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). For diversity advocates, there are some recent signs of progress at the boardroom level, in no small part due to the national discussion of racial disparities in the wake of Floyds murder in 2020 and the rise of the Black Lives Matter movement. What matters is sustained action.. 2016, "What's in a Name? C-Suite is a widely-used informal term used to refer collectively to a corporation's most important senior executivesas in CEO, CFO, and COO. Many are runners, and at least one has completed numerous triathlons (Kristin Peck, CEO of Zoetis, #472 in 2020). This led Jackson Lu, Richard Nisbet, and Michael Morris to write an article titled "Why East Asians but not South Asians are underrepresented in leadership positions in the United States." As the nation gets less white and more diverse, corporate America will need to adapt to better serve that changing market. Affirmative action is a series of policies that aims to increase the opportunities provided to underrepresented members of society. 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.. Many of the men either founded, or co-founded, their companies. [21] See, for example, Ruth Hill Useem, 1966, "The American Family in India," The Annals of the American Academy of Political and Social Science, 368 (1), 132-145; https://doi.org/10.1177/000271626636800113. She has a BA in mechanical engineering from Kettering University, and an MA from Stanford. Perhaps the most unusual story is that of Jide Zeitlin, who became the CEO of Tapestry in September 2019 (#485), but ten months later, in July 2020, he resigned abruptly. [20] Emma Jacobs. Meanwhile, Amazon pledged $10 million to nonprofits focusing on justice and equity. Employee donationsand the companys 100% matchraised an additional $17 million. That means that black CEOs make up a tiny fractionjust 1%of the. Third-culture kids. 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. Again, this yielded information on 22 of these 25 companies, this time for 200 people. Its investor relations site lists an all-whitemanagement team of seven, including CEO Mark Zuckerberg and his lieutenant, Sheryl Sandberg. 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. A reporter was soon to break a story about this affair, and Zeitlin decided to try to control the narrative by telling the story himself in a letter to the Board of Directors that he posted on LinkedIn. Best Programs Improving Diversity and Inclusion in Financial Services. "We are especially concerned about the lack of awareness we discovered among white professionals.". 2021 S&P 500 Board Diversity Snapshot.. One is that it is hard to keep track of those we have called the New CEOs in part because the numbers are ever-changing, and in part because there now have been so many that it is not big news. In addition, the racial and ethnic categories used by the U.S. Census Bureau can change as the way the nation sees itself changes. Today, there are five Black CEOs in the Fortune 500. In these fact sheets, we refer to several generations. 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. 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. Email: jguynn@usatoday.com, Follow reporter Brent Schrotenboer @Schrotenboer. Blacks have thrived in America for centuries. When, 18 months later, Arnold was posted to Pakistan, Arnold and Marian offered to take five-year-old Jide with them. It also puts corporations at a disadvantage. Market data provided by ICE Data Services. 2020. Hewlett Packard Enterprise. In 2008 he became the company's CEO. But hope is not a strategy, said Walker, who joined the board of Foot Locker in January and the board of Shake Shack in June. "CEO compensation surged 14% in 2019 to $21.3 million," Economic Policy Institute, August 18; https://epi.org/204513, [14] Matthew Arrojas. She remained on the Board. Over a third of the U.S. Black population (35%) was 22 years or younger in 2019. Furthermore, just as we had found previously that the larger corporations were more likely than smaller ones to have African-Americans on their boards of directors,[32] so too did we find that the largest companies were more likely to have black managers or executives at the highest levels. 1992. Additionally, these three states are home to some of the urban areas with the highest shares of single-race Black people. Among all U.S.. . [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. 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. The New CEOs: Women, African American, Latino, ad Asian American Leaders of Fortune 600 Companies. According to the company, 3% of Apple leadership is African American and it plans to take "significant new steps on diversity and inclusion. Foreign born refers to persons born outside of the United States to parents neither of whom was a U.S. citizen. "It's embarrassing because there are thousands of black people who are just as qualified or more qualified than I am who deserve the opportunity, but haven't been given the opportunity," retired American Express CEOKenneth Chenaulttold the researchers behind the study. https://lnkd.in/gPMk7DDh Companies must also create a diversity hiring strategy specifically for black employees. Why Are There Still So Few Black Executives in America? There were 4.2 million black immigrants living in the U.S. in 2016, up from 816,000 in 1980, according to a Pew Research Center analysis of census data. Read our research on: Election 2022 | Economy | Abortion | Russia | COVID-19. Nike, via YouTube. But where did it all start? 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. In some cases, companies also list other top-paid officers who recently left. There had been as many as seven for a few years, and the number dipped to three and four in some years. 2021-04-11. 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). 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