A seat at the table… Despite a national reckoning on race and equity, corporate America has been slow to diversify its C-suites. The tide’s slowly turning: last year there were a record 20 Black chief financial officers at S&P 500 companies. But there are still only four Black CEOs in the Fortune 500, and more than 90% of the 50 most valuable public companies in the US don't have any black C-suite execs, including Walmart, Costco, and T-Mobile.
Self-fulfilling prophecy… Last year, over 400 S&P companies used the words “diversity,” “equity,” or “inclusion” in their annual filings. But creating racial equality in the upper ranks of a workforce is about more than quota-filling and good PR. Board members make some of the most critical decisions in any big company. And they’re traditionally responsible for picking their successors, who have been primarily white men.
- Bottom up: Last year, Black workers made up 12% of entry-level employees in the private sector, and only 7% of managers.
- Singled out: Corporate hiring bias and concerns about being the only employee of color on an all-white leadership team can make it hard for Black candidates to gain the experience needed to advance.
It’s a matter of principle and money… when it comes to fostering diversity in the boardroom. One study found that publicly traded companies with more people of color on their boards saw nearly 2% higher stock returns than those who didn’t. Companies have to invest in a diverse talent pipeline, especially in early career, to break the cycle. Now, historically Black colleges and universities are stepping in: Morgan Stanley has pledged $25M to give HBCU students the opportunity to train and network within the company and gain access into the finance biz.