However, there is still a significant racial discrepancy in corner office positions
Pay attention, Corporate America. If you need another incentive to consider a Black individual for the CEO position at your firm, consider how it will affect your bottom line. A new research published in the Strategic Management Journal discovered that when firms recruit Black CEOs, their stock values rise.
According to the study, the increase in stock price is due to qualifications rather than color. They claim that whatever racial prejudices an investor may have generally vanish when looking at Blacks at the leadership, who have more appealing credentials than their white colleagues.
And the figures don't lie. When comparing research participants, 93 percent of Black CEOs held advanced degrees, compared to only 53 percent of white CEOs. Black business executives were also more likely to hold degrees from prestigious colleges.
However, as the researchers point out, these statistics hint to a far larger problem with recruiting processes in Corporate America, where Black individuals must consistently exceed their white colleagues in order to be considered for managerial positions.
"A Black executive would have to repeatedly prove themselves throughout the course of their careers in ways that White CEOs do not," they write. "As a result, newly appointed Black CEOs are more likely than their White counterparts to demonstrate extraordinary traits."
It's also worth noting that, while there is no scarcity of talent, there is still a significant racial imbalance in senior positions. This year's Fortune 500 had only six Black CEOs.
Companies need to do a better job of fostering Black talent from within, according to Ayana Parsons, a senior partner at Korn Ferry, a management consulting firm focusing in diversity and inclusion.
"The only way we're going to have more Black CEOs in corporate America is if we develop them," she says.
#BlackPeople #Business #Stocks #BlackCEO
SOURCE: theroot
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