Why Are There Still So Few Black CEOs?

Stalled Progress

The number of CEOs of Fortune 500 companies who are minorities or women has inched up in the past 20 years, with Black CEOs making only tiny gains.

White

Asian

Black

Hispanic

Women

2000

2010

2020

Note: Data are through August 2020 and may include CEOs who left during the year.

Source: Richard Zweigenhaft, Guilford College

Opportunity for leadership and promotion is not equally distributed;

“Black professionals face greater obstacles early in their career, are viewed more critically than their colleagues and frequently lack the relationships that are pivotal to advancement”;

Unadulterated racism;

Companies often emphasize diversity recruitment but fall short on retention efforts and advancement; 

Many companies tended to see diversity as “nice to have, but not a must have,” although in recent months based in large part on the Black Lives Matter movement, more corporations seeking assistance with board recruitment have specifically mentioned diversity as a priority.

On the issue of unadulterated racism, “One 2019 study of racial bias in hiring in the sciences found Black applicants for postdoctoral positions were rated as being less competent, hireable or likable than their white, Latino or Asian peers.  A 2014 study in which people were asked to evaluate identical legal writing samples found that people consistently found more errors and judged the writing as being poor when they were told the author was Black.  A 2017 study examining callback rates for Black job applicants found discrimination levels haven’t improved in the past 25 years.”

One common refrain from white leaders for failing to diversify corporate leadership is that the talent pool is too shallow.  This age-old adage is belied by the facts.  From the article:  “When it comes to Black advancement, one popular argument among many white executives is that there is a “short supply” of talent. . . .  In reality, . . . the pool of highly educated, experienced Black professionals has never been greater.  In 2019, 26% of Black people age 25 and older in the U.S., or seven million people, had completed at least four years of college, up from 15% in 1999, according to federal data. Among white[s] . . ., that figure was 36%, or 63 million, up from 26% in 1999.  More than 13% of master’s degrees were given to Black graduates during the 2016-17 academic year, up from 9.4% in 2000-01.”

The largest takeaway from firms that successfully diversify their corporate board is commitment.  Making a commitment to add diverse talent requires affirmative effort and the research indicates that diversity grows corporate profits.

hat tip to Will McGrath, 3L Arkansas Little Rock Bowen School of Law