The biggest increase, not surprisingly, was for white women, from 18.8% a decade or so ago to 23.2% in 2020, with a higher percentage in the larger companies (27%) than in the smaller ones (19%). List of chief executive officers - Wikipedia List of chief executive officers The following is a list of chief executive officers of notable companies. The other African-American woman, Mary Winston, served as interim CEO of Bed Bath and Beyond for less than a year, from May 2019 through November 2019 (#258 in 2019). The average rank for the East Asian CEOs was #326, and the median rank was #336. 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. 1992. Pictured (l-r) Edie Fraser, CEO and founder, Women Business Collaborative, Anna Mok, President/CEO, Ascend Leadership, Kimber Maderazzo, CEO, C-200 and Lorraine Hariton, CEO, Catalyst. CGRP-82, Available at SSRN: https://ssrn.com/abstract=3587498, [35] Alison Cook and Christy Glass. 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). 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). "Above the glass ceiling: When are women and racial/ethnic minorities promoted to CEO?" This has received a wide range of criticism leveled against it. 2014. Opinions expressed by Forbes Contributors are their own. The father of Heyward Donegan, Rite Aid (#150) was an executive at IBM, and her mother became an Episcopalian priest when Heyward was 14. From these statistics, the percentage of women in CEO roles has steadily increased since 2000, albeit slowly. They not only bring global understanding and typically the ability to speak languages other than English, they are comfortable moving in elite circles in any country. However, in response to a rebellion from activist investors at Bed Bath and Beyond who were unhappy with the performance of the company, she was one of five new independent members who agreed to go on that Board. In 1963, Katherine Graham took over The Washington Post, the newspaper her father had founded, after her husband committed suicide. In the 2021 fiscal year, approximately 29 percent of all Peloton bike users in the United States were aged between 25 and 34, while only two percent were aged 65 or older. The vast majority are located in the USthe birthplace of the MBA . "Ex-CEO Geisha Williams steered PG&E into bankruptcy, but still got a big raise," Los Angeles Times, April 29; https://www.latimes.com/business/hiltzik/la-fi-hiltzik-pge-ceo-raise-20190429-story.html. Class Warfare: Class, Race, and College Admissions in Top-Tier Secondary Schools, Chicago: University of Chicago Press, pp. Neither the data in the twenty-year trends nor the data on who now is (or is not) in the pipeline to the CEO office provide reason for optimism, Adding to this grim perspective, some research indicates that women and men of color who ascend to CEO positions in the Fortune 500 are faced with even greater uphill odds than their white male counterparts. 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. 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. 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. In 2014, there were 24 companies on the Fortune 500 list run by a woman. As Ramon Gutierrez explains in an essay titled "What's in a Name? She was not raised as a Jew, nor have Jide and Tina raised their two sons as Jews. In 2018, the median compensation of CEOs in U.S. mid-sized companies was approximately $5.3 million, while that of Canada and Europe were $3.2 million and $4.5 million, respectively. Likely due to variation in the global corporate governance landscape, European CEO pay trends were more volatile across the years involved in the study, and . 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 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. They're among countless chief executives who have risen to the top after graduating from business school. The number of women CEOs at the Fortune 1000 level was 27 in 2014. 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. But will a better pipeline of women in leadership actually increase the number of women in CEO positions? Ten years ago, in 2011, there were 12 women in the Fortune 500 CEO role ( 2.4% ). 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. A 2021 Ipsos report surveyed 27 countries to peg the global LGBTQ+ population at 9%. "The number of black CEOs in the Fortune 500 remains very low," Fortune, June 1; https://fortune.com/2020/06/01/black-ceos-fortune-500-2020-african-american-business-leaders/, [19] Sapna Maheshwari. [1] The other one third were from middle- or working-class backgrounds. We all focus on male CEOs standing up to take action and be advocates, she said, referring to women in the workforce. Black CEOs have had to overcome significant barriers to reach the C-suite. In 2008 he became the company's CEO. CEOs often receive restricted stock or options as a significant part of their compensation, the value of which can fluctuate. Although I was unable to ascertain the class background for many of the Latinx CEOs (some don't say, others were complicated by families who had to leave, or chose to leave, the country of origin), I estimate that about 60% were from privileged backgrounds, and the other 40% were either from middle or working class backgrounds. [WBC] have set a goal for the Fortune 500 to be at 15% [women] by 2025 and right now we are only on track for 10% thats not good enough, says Hariton. With Adobe,. [38] Seval Gndemir, Andrew M. Carton, and Astrid C. Homan. A weekly update of the most important issues driving the global agenda. The study, conducted by three women, shows men and women view the consequences of professional advancement and positions of power differently and therefore shape their career progression around those assumptions. Then, because I suspected that larger companies were more likely to include diversity in their leadership teams, I looked at those executives in the companies ranked between #251 and #275 that included photos and biographical information. 7. 2014. They are well-educated, with degrees from schools all over the world and from elite schools in the USA, including Harvard, Yale, Dartmouth, Stanford and Georgia Tech. In the months leading to the November 2020 election, Uber successfully spent hundreds of millions of dollars to convince voters to overturn a California law that would have required the company to classify their drivers as employees instead of independent contractors. [22] Fifteen years later, in a book about the intense pressure applied by parents from privileged families to get their children into elite colleges, Lois Weis, Kristin Cipollone, and Heather Jenkins, applied the concept of flexible immigrants to elite boarding schools, arguing that international students from wealthy backgrounds in their home countries might be outsiders in some ways, but ultimately they fit into prep school culture because "they are fundamentally 'class insiders'" (p. There has been an increase in the number of women who sit as board chairs and as chairs of audit committees as a result. 9-10; and G. William Domhoff, 2020, The Corporate Rich and the Power Elite in the Twentieth Century: How They Won, Why Liberals and Labor Lost (New York: Routledge), Chapters 1-5. 2019. 2020. The first was Ursula Burns, the CEO of Xerox, from 2009 to 2016 (Xerox was #147 in 2009, and #150 in 2016). [4] She began her career as a CPA at Arthur Anderson and then became the chief financial officer at a number of major corporations. 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 survey was conducted by Catalyst, one of the partner organizations for the Women Business Collaborative that compiled the Women CEOs in America Report. [28][29] There was a small increase in the number of Blacks in the House of Representatives, from 52 (12%) to 58 (13.3%). See Lawrence Mishel and Jori Kandra, 2020. The 1,700 participants of a Weber Shandwick study guessed that 23 percent of CEOs at large companies were women. 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). He became the CEO of Uber in 2017, a company that first made the Fortune 500 list in 2020. According to a recent study, 22% of the world's top CEOs have MBA degrees. The report draws on data and includes the most comprehensive breakdown of women in corporate leadership in the U.S. Collaborative, a non-profit founded to accelerateequal position, pay and power for all businesswomen beginning in the corporate board room. Latino Voices: Mexican, Puerto Rican, and Cuban Perspectives on American Politics (Boulder, CO: Westview), 13-14. Report Women CEOs in America Report, at the National Press Club, Washington, DC on Oct. 14, 2021. Research shows that sound corporate governance practices are linked with better performance, including higher market valuations. Only 1% of the Fortune 500 CEOs are African-Americans, 2.4% are East Asians or South Asians, and 3.4% are Latinx. I was unable to obtain information about the class backgrounds for some of the white women CEOs in 2020, but for those I could I conclude that about two-thirds are from privileged or relatively privileged backgrounds where the parents were well-educated professionals, and in some cases, quite wealthy. Enrique Salem, a Latino who was born in Colombia and was the CEO of Symantic from 2009 through 2012 (#391), told a reporter for Financial Times, "To be honest, most people can't tell I'm Hispanic. In that capacity, using the alias of "James Green," he set up a studio and took photos of many women (it is alleged in the article that subsequently was published that some were nude photographs). See the full list of the highest-paid CEOs, here. Based then on the appointments of New CEOs from 2000 through 2020, based on the very small number of New CEOs in the pipeline leading to the CEO office, and based on the academic research that suggests that those New CEOs who are appointed face more daunting challenges than their white male counterparts, and that they have shorter tenures as CEOs than do their white male counterparts, I can only conclude that the future does not look bright when it comes to diversity among Fortune 500 CEOs. Key Takeaways In 2022, only six companies on the Fortune 500 list had a Black CEO. 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. After various positions, mergers, and acquisitions, she emerged as the newly appointed CEO. Jenny Johnson, CEO of Franklin Resources, believes the flexibility of working from home gives women the opportunity to do work on a more fragmented schedule. While Carly Fiorina and other women have led the way in modern corporate leadership, the Women Business Collaborative and other similar groups will keep pushing on those glass ceilings. When she graduated, she went to work for Florida Power and Light, and stayed with that company for 24 years. 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. Born in India, he is the son of a general in the Indian army who moved around a lot during Banga's childhood. http://whorulesamerica.net/diversity/diversity_update_2020.html. "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. [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. 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. 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. Indian-born Silicon Valley CEOs are also part of a four million-strong minority group that is among the wealthiest and most educated in the US. Lorraine Hariton, CEO of Catalyst, said companies need to build up the pipeline of women they already have. If we take a closer look at those we consider part of the global elite, and also factor in those born in the USA but whose parents were from ruling class families in China or Cuba, then class background becomes even more apparent as a predictor of who makes it to the top of the corporate world. 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. Sen's father was a highway engineer. Headquarters: New York, NY. [8], Nazzic Keene took a much less traditional path to corporate power than Muhtar Kent. All of these arguments point to an increase in the pipeline of women for the CEO position. 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). There had been as many as seven for a few years, and the number dipped to three and four in some years. 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 four East Asian women all have Chinese American backgrounds. 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. If I not only omit the two outliers but also omit the four New CEOs whose appointments were interim (one white woman, two African-Americans and a Latino), each of whom served for only for one or two years, the difference approaches but is not significant (t=1.73, df=99, p<.08). 2020. AD Less than 2% of top executives at the 50 largest companies are Black (1:24) Companies across the country have been speaking out against racism, but less than 2% of top executives at 50 largest. [20] Emma Jacobs. 2020. 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. 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). It is notable that of the 17 Asian-Americans who have become Fortune 500 CEOs since 2010, only 4 have been East Asian, and 11 have been South Asian. Despite this, the Women Business Collaborative argues that companies should strive to have more women CEOs because diversity in leadership is critical to the success of companies. 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. [25] If we were to look beyond the American-based companies in the Fortune 500, we would find even more flexible immigrants. 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. 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). In interviews, these women often emphasized how important being on teams had been for their development as leaders. In 2019, the compensation of the CEOs at the top 350 firms averaged $21.3 million, an increase of 14% from 2018. 2016, "What's in a Name? 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. Ramon A. Gutierrez and Tomas Almaguer (Oakland: University of California Press), 20-21. At just 23 years old in 2007, Zuckerberg became the youngest self-made billionaire in history. In 2007 she left to work at PG&E. 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. (Photo by Justin Sullivan/Getty Images), Co-sponsors/panelists present the 2nd Annual. 2020. Karen Lynch taking over the lead at CVS Health in February of 2021 made the company the biggest in Fortune 500 history to ever be led by a woman. [5] Yen Le Espiritu. The two longest-serving held their positions for 11 years: Paul Diaz, a Cuban-American lawyer who was the CEO of Kindred Health Care from 2004 to 2015, and George Paz, a Mexican American accountant who became the CEO of Express Scripts from 2005 to 2016. They concluded: "Minority leaders face challenges that begin at the point of promotion and go beyond underrepresentation. At 41, Women are still the minority; we'll . 370 Responses. I decided to look at this issue for those New CEOs who were chief executives of Fortune 500 companies between 2000 and 2020, but I did not include those who were still in their positions heading into 2021 (because their tenure was not over). There have been 41 Latinx CEOs of Fortune 500 companies since 2000: 39 men and two women. LGBTQ+ CEOs have done much in this regard, but there is still much to do. Indian chief executive officers (CEOs) head some of the biggest companies in the world when ranked by market capitalization, with a presence that's heavily felt in the technology (tech) sector.. Start your day with ANC's rundown of news you need to know (14 July 2023) 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]. Despite the progress, Hariton said the pace of change is still too slow. When she was eight, Moammar Ghadaffi's Free Officers' Movement overthrew the Libyan government in a coup d'etat. For example, Mary Dillon, the CEO of Ulta since 2013, a company that made the Fortune list in 2018 (at #471), is married to a biochemist who quit his job to stay home and take care of their three children. "[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. It could even be due to the fact that empathy isnt a trait that companies value. 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). Excluding those who were still in their positions in 2020, the other 24 Latino CEOs were in their CEO jobs for an average of 5.7 years. Their multicultural and often multilingual upbringing provided them with certain advantages, especially when it came to functioning effectively in differing cultures. The New CEOs, p. 137. So, too, is skin color important, especially for Latinx. See Raquel Reichard. Roger Ferguson Jr. became the CEO of TIAA-CREF in 2008 (it was #86 on the Fortune list that year). 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. In our larger project, in which we have looked at diversity in the power elite, we also have tracked diversity in the political elite, and this has included especially the executive branch, but also both the Senate and the House of Representatives. That is what I plan to do in this report. (l-r) CEO Jenny Johnson of Franklin Resources and. This is a list of Women CEOs of the Fortune 500, based on the magazine's 2022 list (updated yearly). As can be seen in Table 3, for the 42 white women who had been CEOs and stepped down by the end of 2020, the average tenure was 6.0 years. 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). In fact, all Fortune 500 companies have diversity programs centered around women to give them additional visibility opportunities that their male counterparts dont receive. His father, who had no college degree, became a waiter, and his mother found work as a clerk at a trucking company. The next wave of women included more who had played sports in high school and some who had played in college. Carly Fiorina was the first woman to lead a, Fortune Top-20 company when she became CEO of Hewlett-Packard. In 2018, the average CEO's compensation from the top 350 US firms was $17.2 million. 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). "Tapestry C.E.O. [38] Follow-up studies they performed indicated that evaluators perceived East Asian CEOs as more likely than white men to be self-sacrificing and believed that they were more likely to be effective in periods of decline than periods of success. "We are seeing women and minorities on boards ticking up, and boards have a lot to do with who becomes CEOs," says Lorraine Hariton, CEO of Catalyst, a nonprofit consulting and research firm focused on women in the workplace. 2014. With this appointment, Ford became the second openly gay Fortune 500 CEO, Tim Cook of Apple having been the first when he came out as a gay man in October 2014 (#5 in 2014, #4 in 2020) In April, 2019, James Fitterling became the third, and the first male board-appointed out CEO when he became CEO at Dow (#78 in 2020). Turkey was not part of what is often called British India, and is not quite on the Asian subcontinent, but it is closer to India geographically than to our other, admittedly artificial, categories of African-Americans and Latinx. They concluded that one of the three, low assertiveness, but not the other two, prejudice against Asians, or the amount of motivation that they had, was the key reason for this difference. So, too, are there Latinx CEOs who appear to have had middle class backgrounds (their parents were in the military, were teachers, were secretaries or accountants) and among the Latino CEOs are some stories of dramatic journeys up the socioeconomic ladder. When I looked for biographical information about him, I learned, as noted above, that he is biracial, with an African-American father who was in the military, and a Belgian mother. He worked for Goldman Sachs for 20 years, went on the Tapestry board in 2006, became chairman of the board in 2014, and became the CEO of that company in late 2019. 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. "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/. Along with talk of how to build the pipeline of women CEOs, the summit was filled with the celebration of women leaders and excitement for the future. I think what the pandemic has proven is that empathetic leadership which is normally associated with women [and] being empathetic seen as a weakness [is] such a strength and that is helping people understand the value of women in leadership positions.. And why do they accept these especially challenging jobs? The New CEOs: Women, African American, Latino, ad Asian American Leaders of Fortune 600 Companies. What is not clear is that it is due to more feminine traits, like empathy. Since 2000, there have been 151 white women and people of color appointed CEOs at Fortune 500 companies. Even with this hefty compensation package, Williams was paid much less than many other CEOs. [2], In July 2020, Zeitlin announced his immediate resignation as CEO and Chair of the Board at Tapestry. 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). Fortune 500 women CEOs as of 2021 (47 women) Fortune 500 CEOs by gender over time See also Fortune 500 [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).