50% of those who are making minimum wage are above the age of 25. Only 5% of people in a recent survey stated that they didnt see any benefits to a social networking presence for a Fortune 500 CEO. When Banks looked at the above diversity data for senior executives at 16 Fortune 500 companies, she was careful to point out that it need not be a depressing reminder that women and people of color and other marginalized groups that arent counted on the EEO-1 Report struggle to make it to the upper echelons of corporate America. In my own experiences as candidate for President of Iceland, as cofounder and executive chairman of an investment firm, and as a mentor to female entrepreneurs, I regularly encounter the same problem: a lack of recognition that changingwhois in charge is the best way to changehowwe tackle our biggest, collective challenges while simultaneously improving corporate performance. On average, they also expect inflation to remain (slightly) over 5% next year. The share of European-based companies also declined, from 158 to 143, over the same period. So, its important to point out that the workforce at 16 companies that share data isnt a perfect predictor of the other 484. 2023 Fortune Media IP Limited. Does this mean that white men are better at business and provide more overall commercial success? Yet, the new high still only translates to around 15 percent female representation at the top of the country's biggest public businesses. As of March, there were 74 female CEOs employed at America's 500 highest-grossing companies, up from 41 in June of 2021. Some would say they have. The CEOs, therefore, unlike the athletes and the rock stars, are part of the power elite. As of last year, 86 percent of Fortune 500 CEOs were white men, according to data provided exclusively to SHRM by Richard L. Zweigenhaft and G. William Domhoff, professors emeritus who write about diversity among the "power elite"those with significant financial or political influence in the U.S. Zweigenhaft and Domhoff have studied the emergence of the New CEOsthose who are not white men. Posted January 2021 In 1963, Katherine Graham took over The Washington Post, the newspaper her father had founded, after her husband committed suicide. daily and featuring the latest statistics from the media, The most sophisticated serve as a driving force for the commercial performance of the business and proactively provide the analysis and insight that help frame the companys most important decisions. Maybe but maybe not. More recently, we have been seeing a trend toward earlier CFO retirements among Fortune 500 companies. Since then, this number rose by 4% to 41 as of 2021. We have called them the new CEOs to emphasize that they are not, like the old CEOswhite males. The 2020 Black Lives Matter protests in response to the killings of Ahmaud Arbery, Breonna Taylor, George Floyd and other Black Americans once again thrust the issue of racial inequality right in front of executives as companies felt compelled to make statements or, in some cases, donations. This really isnt an us vs them type of conversation, but the demographics of pay cant be ignored. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 47 Interesting Fortune 500 CEO Demographics, 100 Powerful Money Affirmations for Financial Abundance, 125 Positive Affirmations for Success and Prosperity, 125 Powerful Morning Affirmations to Start Your Day, Harley Davidson SWOT Analysis (2021): 27 Strengths, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. Back in 1963, when her husband committed suicide, Katherine Graham took overThe Washington Post, the newspaper her father had founded. Terms & Conditions. As shown in the table above, 436 (87.2%) of the Global 500 are represented by only 10 countries: two in North America (Canada and United States), five in Western Europe (France, Germany, Netherlands, Switzerland and the United Kingdom) and three in East Asia (China, Japan and South Korea). In addition, the past year has opened more eyes to theclimate crisis,heightened inequality,andfailures of governancein emergency responseall of which hit societys most marginalized the hardest while elevating risk for business and governments alike. When the Washington Postmade theFortune500 list in 1972, she became the first woman CEO of aFortune 500 company. There are just two women of color on the list: Geisha Williams, the Latina who runs PG&E and Indra Nooyi, the Indian American (she would be counted in the Asian category on an EEO-1 Report) CEO at PepsiCo. If all CEOs are looked at, the University of Wisconsin-Madison would produce as many CEOs as Harvard. The big picture is that almost 90% of theFortune500 CEOs are still white males. Diverse backgrounds and experiences on corporate boards, including those tho represent a broad range of society, strengthen board performance and promote the creation of long-term shareholder value, the report said. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2023, Quarterly smartphone market share worldwide by vendor 2009-2023, Number of apps available in leading app stores Q3 2022, EU-Lnder mit der besten Platzierung im Gender Equality Index 2022, EU-Lnder mit der schlechtesten Platzierung im Gender Equality Index 2022, Gleichberechtigung in der EU nach dem Gender Equality Index bis 2022, Gleichberechtigung in Schweden nach dem Gender Equality Index bis 2022, Gleichberechtigung in Italien nach dem Gender Equality Index bis 2022, Gleichberechtigung in Polen nach dem Gender Equality Index bis 2022. That might mean self-employment, a career change, or other changes, but accepting poverty wages only continues the problem. Half of Fortune 500 CFOs have been in the role two to five years; the longest serving CFO has been in the role for 33 years. Rawlinson, 47, is making a name for himself as the leader to bring on board through a corporate pivot. You have successfully saved this page as a bookmark. As of Dec 7, 2022, women were CEOs at 9.4 percent of Fortune 500 companies. This is a list of Women CEOs of the Fortune 500, based on the magazine's 2022 list (updated yearly). Why, then, are we moving from talk to action at such a glacial pace? Brian Armstrongs cryptocurrency exchange Coinbase became the first crypto company to break into the list this year, despite virtual currencys rough start to 2022 creating some serious headaches for Armstrongs company. Does it mean that there are not any problems in the workplace? The big picture is that almost 90% of the Fortune 500 CEOs are still white males. In our latest issue, we look at the state of sustainability and the imperatives for leaders. Si vous ne souhaitez pas que nos partenaires et nousmmes utilisions des cookies et vos donnes personnelles pour ces motifs supplmentaires, cliquez sur Refuser tout. BBC, Snap warned employees that the social media firm will miss its quarterly revenue targets, and its share price fell 30% in extended trading. Some were solo start-up creators, others co-founded a promising enterprise, and a few had to wait a few years between starting their companies and taking the helm. It refers not just to women and people of color, but also to people with disabilities, military veterans, and LGBTQ people. Globally, women occupya mere one in fiveseats in the boardroom. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. We have 60 years experience in leadership consulting. The percentage of Fortune 500 CEOs that have an active presence on at least one social network like Facebook or Twitter: 30%. 1 in 4 key executive roles was held by women in 2019, Black and Indigenous people and other people of color (BIPOC). The forum officially kicked off in March in Mexico City, sounding a clarion call for concrete, ambitious, and transformative actions to achieve immediate and irreversible progress toward gender equality. We are calling on businesses to showcase their commitment bysigning up to become a Generation Equality Commitment Maker. Starbucks founder Howard Schultz returned to run the company for the third time last March, as the company navigates unionization demands from workers and even a possible foray into the NFT space. But when it comes to DE&I in the C-suitethose top four or five jobs that tend to have the most influence and earn the most moneymany of the faces look the same: While progress has been made since 1972, when Katharine Graham of The Washington Post became the first Fortune 500 CEO who was not a white man, the overwhelming majority of CEOs at Fortune 500 firms in 2021 remain white men. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. It brings up an important question: if even a fraction of the money that is spent on politics, say 2%, was actually spent on social needs like feeding the hungry, how much of the world could be changed in an instant? Meanwhile, Out Leadership, a business network that helps companies place LGBTQ+ leaders in executive positions, reports that fewer than 1 percent of Fortune 500 CEOs identify as LGBTQ. The FDA's independent advisory panel will discuss (and possibly issue recommendations on) the matter on June 15. The average amount of years it takes for a Fortune 500 CEO to work up to the top leadership position: 12.8 years. Every business must be ready to respond. CEO Qurate Retail. As of November2017[update], this is the list of the top 10 countries with the most Global 500 companies.[13]. It also means that the average person has the chance to interact with their companys leadership something that the chain of command in the past may have not allowed. Year company was founded: 2004. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Not only do white males make up a large majority of the CEO demographics, but they are also the best compensated for the job that they are doing. The average age of a CEO in one of the top Fortune companies: 57. Hes quoted in the Wharton article saying that just the mere presence of blacks in the CEO or chairman positions have an impact. Success at meeting such benchmarks is what typically leads to executive promotions. Its been said that when you are starting out in your career, it makes sense to be a Democrat because youll have your way of life protected. All rights reserved. new record of female CEOs at Fortune 500 companies. Women make up 56 percent of front-line employees butonly 29 percent of the C-suite, according to the Gartner 2021 Leadership Progression and Diversity Survey, which queried 3,500 employees across 24 industries on the topic in February 2021. Only 4% of the CEOs on the Fortune 500 contribute to blogs, but have the highest levels of popularity in their company compared to those who dont blog. Women make up just 8% of the top earners on the Fortune 500 list. Compared to the demographics of the overall employed workforce, Asian and white workers at these 16 companies are overrepresented in senior leadership by 15 and 10 percentage points, respectively. Many of todays Fortune 500 CEOs are working hard at creating better paying opportunities. Unlike professional athletes and rock stars, however, Fortune 500 CEOs oversee corporations that provide jobs for many thousands of employees and they and their companies have a major impact on the U. S. economy. In my role as CEO of the B Team, I am proud to partner with companies that acknowledge their 21st-century responsibilities as corporate citizensand act accordingly. That was the whole purpose behind the minimum wage, yet the minimum wage has not kept up with inflation or productivity since its inception. Several years ago, Ryan Buchanan attended an event with about 90 business executives in the Portland, Ore., area where his company is based, and had what he calls an "aha" moment. You dont have to be a person of color or a woman or a person from another marginalized identity to be a champion for diversity, she said. The U.K. has already expressed its outrage, with Foreign Secretary Liz Truss saying her country remains "committed to holding China to account." Pew Research Center There are 118 women serving as voting members of the House of Representatives at the outset of the 117th Congress, comprising 27.3% of House members. "All these conversations started to bubble up, especially with this generation that grew up with social media and doesn't have a problem with letting you know how they think. Meanwhile, Native Americans and Hawaiians or Pacific Islanders are underrepresented by 0.3 and 0.4 percentage points. Fully 28 (or 38%) have MBA degrees, five have JD degrees, and others have masters or PhD degrees. In 2021, no CEO or corporate director should need to be convinced of the business case for gender-balanced and racially diverse leadership teams. Thats all very good, he continued. One of those problems Rougeau may have been referring to when he talked about corporate diversity in 2006 is the way tokenism manifests for high-ranking people from marginalized communities. Separately, yesterday was the opening of Fortune Brainstorm Design in Brooklyn, held in partnership with IBM and Salesforce. Leadership teams that reflect the diversity of our communities and our world are the ones best fit for the futureand best equipped to respond in ways that safeguard their business interests. Heres Casey: Regeneration is actually moving from an extractive mentality to an additive mentalityadding value for stakeholders, not just shareholders. Mark Zuckerberg Company: Meta (formerly known as Facebook) Fortune 500 rank: 27. For the most part, organizations are largely staying within their own industry when selecting a new CFO; just 14% of CFOs came from a different industry. We must disrupt the crisis of conformitywith diversity from top to bottomif we hope to ensure a better way of doing business that values people and planet alongside profit. The percentage of CEOs on the Fortune 500 list who are of Latino decent: 1.6%. In 2016, 65% of externally hired CFOs compared with 25% of all CFOs had prior public company CFO experience. Americas national beer could soon be Mexican as Memorial Day weekend sales drop plunges Bud Light further into crisis. Sign up for theFortune Features email list so you dont miss our biggest features, exclusive interviews, and investigations. Powered and implemented by Interactive Data Managed Solutions. All Rights Reserved. Statistics; Cookie statement; Our infographics team prepares current information in a clear and understandable format, Relevant facts covering media, economy, e-commerce, and FMCG topics, Use our newsletter overview to manage the topics that you have subscribed to. In one year, women across major economies were24% more likelyto lose their jobs than men. His nonprofits also provide career and leadership training for a diverse group of young professionalswho are typically 22 to 35 years oldwhich includes a five-week course on topics like education, insurance products, retirement savings and building wealth through home ownership. This is the web version ofCEO Daily, a newsletter of must-read insights from FortuneCEO Alan Murray. Women make up more than 50% of the total workers who are working at a minimum wage. [6], As of August2021[update], just 21 (4%) of the Fortune Global 500 companies are located outside East Asia, North America, and Europe. And the increasing number of LGBTQ executives publicly opening up about their sexual orientations and gender identities has started to break down barriers to the C-suite, those interviewed say. 43% of them say the work in fear daily. Those advantagesor lack of themstruck Ryan Buchanan the day he attended a conference of business leaders in Portland, Ore., and realized that of the 90-some executives there, nearly every single one was a white man. Until 1989, it listed only non-United States industrial corporations under the title "International 500" while the Fortune 500 contained and still contains exclusively United States corporations. When he was named as the head of the company in 2001, he became the third black CEO of a Fortune 500 company. Fortune had previously listed Shell as a British/Dutch company, but as of the 2016 listing it is listed as Dutch. The last three years have also seen little change in Fortune 500 CEO demographics. It doesnt change anything. Which makes the founders-turned-CEOs of this years list stand out even more by bucking the trend and sticking with their companies through the good and bad times, sometimes for decades. This means a CEO earns $774 for every $1 that a minimum wage worker earns. All rights reserved. Moderna said last month that its vaccine for under-6s was good to go. Meanwhile, average CFO tenure has remained relatively flat over the years, ranging from a low of 5 years in 2009 to 6 years in 2012. For 4 years in a row, AFLAC has been named the most ethical company on the Fortune 500 list. Dcouvrez comment nous utilisons vos donnes personnelles dans notre Politique de confidentialit et notre Politique relative aux cookies. We like to focus on money, but the statistics in these demographics show that business leaders are motivated by the fear of losing their company, their reputation, and the jobs that they have helped to create more than anything else. Consistent with the previous two years, 14% of Fortune 500 CFO positions turned over in 2016. The top-ranked companies in each sector are as follows: List of public corporations by market capitalization, "A New Perspective on the Corporate World", "40% of Fortune 500 companies Asian, India has 7 in list - Times of India ", "Forbes Global 500 list of 2021. Korn Ferry also pointed out that too few employees from diverse backgrounds are given the type of managerial jobs early on that would allow them to oversee financial results, such as profit and loss (P&L) benchmarks. The percentage of CEOs on the Fortune 500 list who are of Latino decent: 1.6%. [5], As of August2022[update], 26 (5%) of the Fortune Global 500 companies are located outside East Asia, North America, and Europe. In 2019, the highest-grossing company with a female CEO had been General Motors, then in rank 13. The average big-company CEO made 351 times the pay of the average worker on a realized basis in 2020, according to the Economic Policy Institute (EPI), which has tracked the metric for decades,. White men are also the most inclined to treat business like a good old boys club and only hire family, friends, or close associates. When the Washington Post made the Fortune 500 list in 1972 (it was #479), she became the first woman CEO of a Fortune 500 company. Our annual survey of. Since 1995, the list has had its current form, listing also top financial corporations and service providers by revenue. SAP says it is heading for an "orderly exit" from Russia, while Cloudflare argues "withdrawal by Internet companies can have the unintended effect of advancing and entrenching the interests of the Russian government to control the internet in Russia." The average CEO spent 6.9 years in the role in 2020, down from eight in 2016, according to a 2020 survey by recruiting and consulting company M&A Executive Search. Can I integrate infographics into my blog or website? Finally, cryptocurrencies are still far from the plans of big company CEOs. Those conversations sort of crescendoed and became front and center and leaders had to hit pause.". Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices Diversity, equity and inclusionor DE&Idescribes the efforts institutions take to create a more welcoming environment for people of less-privileged identities. It wasnt until last August that Business Roundtable, an association of CEOs whose companies represent 15 million workers, specifically cited diversity at the top of its list of characteristics to consider for board composition in its Principles of Corporate Governance guide. Chief executive tenures have been becoming shorter in recent years. All of these developments stirred an awakening in company leaders, said Travis Foster, chief legal officer at WorkShield, which provides companies with third-party investigations of harassment and discrimination complaints. Forward-thinking leaders are already showing the way. 1 out of every 2 Fortune 500 CEOs states that they are a Republican. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. There are 22 women who are CEOs of Fortune 500 companies, but 6% of the Fortune Top 50 companies are headed by women. Here are the 21 founders-turned-CEOs on this years Fortune 500. Still, the white men, who make up about 35% of the population . mesurer votre utilisation de nos sites et applications. Only 3 out of every 4 Fortune 500 employees states that they would report the misconduct when they saw it. on two sectors: "Media and Technology", updated 9 out of 10 women who serve on the board of a Fortune 500 company state that theyve had to overcome an obstacle that was related to their gender in order to achieve success. "There is a sense that if we're complicit, if we're silent, especially as a white male founder, then not saying anything or not taking any action is a sign that we're stuck in the past.". These 72 well-educated white women include many who have degrees from Ivy League schools, as well as many who attended the flagship state schools where they grew up. The Global 500 includes Unilever under the heading "Britain/Netherlands", as the company is counted in the tally for both countries. Nasdaq filed a proposed rule late last yearthat would require listed companies to publicly disclose diversity-related statistics and meetor explain why they are not meetingminimum boardroom diversity targets. No minority makes up more than 10% of the Fortune 500 list in any aspect of it. Blaming the Fortune 500 CEOs for this inequality is too easy. Leading a Fortune 500 company isnt easy. They are the best of the best at what they are able to do and provide a lot of opportunities to the world. When the average of all employees salaries are placed against the average CEO salary, the ratio becomes 334:1. If anything though, this study has shown that age and education level . We suspect the earlier retirements are being driven by a combination of the growing demands of the CFO role, recent wealth creation and a rise in the number of opportunities for CFOs to serve on outside boards. Natura, the Brazilian-headquartered cosmetics company andworlds largest B Corp, is committed to achievinggender balance on its senior team and board by 2025, as well as equitable representation across managementof other underrepresented groups. He reached out to some 100 executives he knows in the area and won commitments from them to support his nonprofits by providing internships and mentorship to a diverse candidate pool. FORTUNE may receive compensation for some links to products and services on this website. When they retire from the CFO role, they may take on several board assignments, allowing them to continue to contribute and remain professionally challenged without the pressures and demands of the CFO role. As can be seen from the table above, 425 (85.0%) of the Global 500 are represented by only 10 countries: two in North America (Canada and United States), five in Western Europe (France, Germany, Netherlands, Switzerland, and the United Kingdom) and three in East Asia (China, Japan and South Korea). Fortune. 1 While boardrooms are only slightly more diverse than top. CEO Evan Spiegel: "While our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time." Is such a lack of diversity in these demographics showing that the world really does have a racial and gender preference? Fortune 500 list. Which topics are covered by the "Chart of the Day"? FORTUNE may receive compensation for some links to products and services on this website. Of note, no Fortune 500 company had a Latina CEO in 2021. In looking at the demographics of the Fortune 500, it is easy to see how this point of view could take place. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. But a crisis of conformity still plagues C-suites and boardrooms around the world. It is estimated that about 40% of the Fortune 500 CEOs have an IQ that is in the talented and gifted range, or an IQ that is about 128. Thats up significantly from 36% last year. Travis Foster, chief legal officer at WorkShield. American Expresss first black CEO, Kenneth Chenault, Americas national beer could soon be Mexican as Memorial Day weekend sales drop plunges Bud Light further into crisis. Fortune 500 women CEOs as of 2021 (47 women) CEO Company Fortune 500 rank . The Fortune 500 list of companies is a true measurement of success. Almost all of those for whom I could find information were, or had been, married, and most had children. Big corporations often recruit from colleges with marquee nameswhere money and connections help gain entryand from within companies already on the The average retirement age in 2016 was 58.2, a decline from 59.8 in 2015 and down from a recent peak of 60.6 in 2011. Another 9% of external hires and 6% of all CFOs had previously served as CFO of a private company. 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 people who fill those leadership pipelines get there because of a number of advantages, among them: whether they went to college, where they went to college, whether they receive internships, the connections they make, the mentors they have, and their access to career development programs. Only 2% of CEOs make a salary that is over $3 million per year. Moreover, the top six (United States, China, Japan, France, Germany, and the United Kingdom) are some of the world's largest economies as estimated by the IMF (List of countries by GDP (nominal)). The best part about social media, like it or not, is that it makes the private lives of people a little more public. A collection of stories, insights and resources on 21st-century business leadershipvisit The New Leadership Playbook, today. CEOs must meet this moment by closing gender and race gaps in leadership. The carmaker with CEO Mary Barra at the helm is now the third-biggest Fortune 500 company led by a women and the 22nd biggest overall. But according to statistics, it hasn't come far enough. The Most Powerful Women team reported on Wednesday that 32 of the CEOs on this years list are women. In the European Union, companies that dont report their gender pay gapscould soon face fines. Nous, Yahoo, faisons partie de la famille de marques Yahoo. Several of these companies are on a meteoric rise this year, such as electric car manufacturer Tesla, co-founded by current CEO Elon Musk. There are ways that we can make changes as well. Bloomberg. 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. and displayed without charge by all commercial and The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: 2022 is seeing a new record of female CEOs at Fortune 500 companies. In 1999 he was followed by Fannie Maes Franklin Raines, who was eventually ousted after the 2008 mortgage crisis. Chief financial officers increasingly are called on to be operational experts, strategic partners to the CEO and the voice of the investors in their organizations. [10], The following is the list of top 10 companies.[11][12]. Many are married to high-powered executive husbands, but notably, some have reported that their husbands had given up careers to take care of the children. Profile of the Fortune 500 CFO today and in the future June 2017 Chief financial officers increasingly are called on to be operational experts, strategic partners to the CEO and the voice of the investors in their organizations. Sixty-nine percent of Fortune 500 CFOs in 2016 were internal successors, building on the longer-term trend toward grooming internal successors. So there you have it, the average Fortune 500 CEO is a 57 year old American male born in New York and educated at Harvard and holds an MBA. Black and Indigenous people and other people of color (BIPOC) make up 31 percent of front-line workers, but only 17 percent of the C-suite. Whistleblowers are more likely to experience retaliation at a Fortune 500 company than at a business that is not on the list. It shouldnt be our goal to say, Hey, look, theres another Asian woman whos in this leadership position and that means I can make it too, she said.That perpetuates tokenization.. snapshot of executives sitting in the CFO seat as of December 31 of their respective year. The business world has made strides in diversifying the C-suite. What is more,new research recently featured in Harvard Business Reviewshines a light on the role of women leaders in accelerating innovation and embrac[ing] transformation while seeking to reduce the risks associated with it. This powerful business case should inspire the corporate class to see gender-balanced leadership as the transformative lever that it is. BY Paige McGlauflin May 23, 2022, 4:00 AM PDT In the wake of racial protests following the murder of George Floyd, companies pledged to increase diversity within their executive ranks and. Those are incredibly important because when an employee feels like they have a relationship with the CEO of their company, then they are more likely to stay at their job for the long term. When publishing one of these graphics, In terms of CEO education level by sector, 65% of Fortune 500 sectors on average have CEOs with MBAs whereas 35% have Bachelors Degrees. Starting a new company and building it up to be one of the largest and most successful businesses in America is even harder. In a world where wages are static and people have to move jobs in order to make more money, that relationship has more value than one might initially perceive. The list is compiled and published annually by Fortune magazine. His "aha" moment was what started it all. At the time the article was published, American Expresss first black CEO, Kenneth Chenault, was 5 years into his now 16-year tenure. No, of course not.. The #MeToo movement gave women a platform to speak up about top executives' sexual advances and the way leadership doors either closed or opened for them as a result. Need infographics, animated videos, presentations, data research or social media charts? Clorox just named Linda Rendle as its new chief executive, bringing the number of women CEOs on the Fortune 500 list to 38 a new record that underscores the slow pace of change at the highest . PensionDanmark, a major European labor market pension fund, is committed togender balance across its entire staff by 2025while advocating forresponsible corporate tax practiceand atransition to a net-zero economy. The route up represents the function or discipline where CFOs spent the longest amount of time in their careers. Those conversations sort of crescendoed and became front and center. The most common advanced degree that is held by CEOs today is a Masters of Business Administration. Norways sovereign wealth fund, the worlds largest, called on its portfolio companies toset targets for gender diversity on boards. In 1981, when he became the CEO at Coca Cola, Cuban-born Roberto Goizueta became the first Latino CEO of aFortune Company. But these 21 current CEOs are living proof that it isnt impossible. The average age of the founder-turned-500 CEO was 54 years, with some as young as 37 and others as senior as 74. Only 7% of Fortune 500 CEOs say that they are motivated by fear. Women make up just 8% of the top earners on the Fortune 500 list. Sign up to get it delivered free to yourinbox. That, said Dr. Kira Banks, leaves too many people on the bench when its time to increase corporate diversity and retention. Women are traditionally more skilled and more successful when it comes to the areas of business that make up the Fortune 500 list, yet barely make up 5% of the total CEOs on the list. I had a lower level manager create the document and my mistake was not reviewing the information first. Its this shiftiness that makes people not trust leadership. "I looked at my own company and realized we'd also not been intentional about racial diversity and [gender] equity.". Speaking of the 500, Ellen McGirt and I had a fun conversation with Edward Jones CEO Penny Penningtonone of a record 44 female CEOs on the list this yearfor this weeks episode of our Leadership Next podcast. The Inclusion Revolution is here, and weallstand to benefit. More news below. Statistics; Cookie statement; Toggle limited content width . It also shows that female CEOs are "finding stability and staying power atop Fortune 500 companies," writes Emma Hinchliffe. [7], As of August2020[update], this is the list of the top 10 countries with the highest earning top 500 companies.[7]. When payment ratios are at 774:1, we are doing something wrong. Fortune, Tesla has failed in an attempt to have "rampant sexual harassment" claims moved to behind-doors arbitration. All these conversations started to bubble up, especially with this generation that grew up with social media and doesnt have a problem with letting you know how they think. The list also includes six companies with Black CEOs, which means a return to the record level set in 2012and for the first time, a Black founder (Compass's Robert Reffkin) is on the list. This chart shows the number of female CEOs at Fortune 500 companies and female-led Fortune 500 companies with the highest 2021 revenues. [7], As of August2020[update], just 24 (5%) of the Fortune Global 500 companies are located outside East Asia, North America, and Europe. 2023 Fortune Media IP Limited. "They have expectations that companies will represent their social justice values and values around issues important to" diverse communities, said Buchanan, whose nonprofit primarily supports young college students and professionals from underrepresented backgrounds. please visit our agency website, Your contact to the Infographics Newsroom, Find your information in our database containing over 20,000 reports. Sitting CEOs serve on fewer outside boards today than in the past, a decline that began with the passage of the Sarbanes-Oxley Act. Although Clifton Wharton was the CEO of TIAA from 1987-1992, TIAA did not make theFortune list until 1998 when he no longer was CEO. Even though they tend to look in all the same places for talent, according to Gartner, the No. [6], The following is the list of top 10 companies. The survey shows that the majority58%now say they have a plan to achieve net zero emissions by 2050 or before. Some 72% said CEOS have recently gotten too involved in commenting on social and political issues, and need to pull back, while only 28% said CEOs have a responsibility to speak out on important social and political issues, and should continue to do so.Last year, the exact same question revealed a 50-50 split. It includes photos of Uyghur detaineesas young as 15and of heavily armed strike units who, leaked documents suggest, are told to use their weapons if someone tries to escape. On the other hand, the US has always been about providing fair wages for a days work. A classic example of this is former Yahoo CEO Scott Thompson in 2012. In the end, however, the CEO is just as scared as the front line worker of losing their job and not knowing what theyll do next. ", 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know. BuchananCEO of digital marketing agency Thesisco-founded two nonprofits that provide college scholarships to students from underrepresented backgrounds. Buchanan also attributes the C-suite's renewed attention to diversity and equity in leadership to the demands of a younger generation. Every business will be affected. They wind up bearing the implicit responsibility to make sure other employees who look like them achieve a similar level of success. (The average skyscraper has about 50 floors; the U.S. The percentage of CEOs who admitted that they were Democrats: 2%. Ten years ago, in 2011, there were 12 women in the Fortune 500 CEO role ( 2.4% ). In January Xeroxs Ursula Burns, who became the first black woman CEO on the list in 2009, stepped down from her post. In 2019, 85.6 percent of Fortune 500 CEOs were white men. Offers may be subject to change without notice. Now shes patching up a $27.7 billion marriage, CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. The Statista "Chart of the Day", made available The following are the top-ranked companies in 2020 for each sector. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. 1 reason HR managers gave for the lack of diversity in executive roles was "not having enough diverse leadership talent in the pipeline." In fact, a former senior executive at American Express which is ranked at #85 on this years list talked to the Wharton School about in 2006. And dont just take my word for it. While still low, this represents a meaningful increase in female representation since 2006, when 6.8% of CFOs were women. It takes intelligence to make billion dollar decisions, but isnt it more impressive for a self-made millionaire or billionaire to achieve great success? Powered and implemented by Interactive Data Managed Solutions. 2022 is seeing a new record of female CEOs at Fortune 500 companies. industries; and "Economy and Society", which Richie Zweigenhaft, Charles A. Dana Professor of Psychology, Emeritus, at Guilford College, is the co-author, with G. William Domhoff, of numerous books about diversity in the power elite, and, more recently, the author ofGEEZERBALL: North Carolina Basketball at its Eldest (Sort of a Memoir). Of these, 89 are Democrats, unchanged since 2019, and 29 are Republicans, up from 13 in the 116th Congress. [5], The following are the top-ranked companies in 2022 for each sector. Ikea, which has already achievedgender balance acrossglobal management, is inspired to take further action, committing toclose gender pay gapsandensure racial and ethnic equalityacross the business. Several inconsistencies exist in Fortune's ranking of cities with the most Fortune 500 headquarters. If that happens at the top, then senior level managers are going to be more than willing to do the same thing. 1 out of 2 CEOs will purchase goods or services online. This made him the first openly gay CEO of a Fortune 500 company. Seventy-five percent expect a recession this year or next. You can listen on Apple or Spotify. Here are the 21 founders-turned-CEOs on this year's Fortune 500. Please enable scripts and reload this page. Yet they are consistently on the top of the Fortune 500 list, showing that intelligence and strategy will win over popularity and political opinions in the current business climate. The event gave me the opportunity to interview Valerie Casey, head of design at Walmart. CEOs must recognize that these are not sector-specific risks. June 2, 2023, 2:15 AM PDT. Offers may be subject to change without notice. Finally, the rise of investor activism has heightened boards anxiety about investor relations, which has CEOs and boards prioritizing capital market savvy and IR experience when selecting new CFOs. So, with the help of a colleague, Buchanan founded a nonprofit that provides college scholarships to students of color, mentors young professionals from diverse backgrounds and invests in resource groups for LGBTQ workers. People being transferred between facilities are blindfolded and shackled, even if they are sick. Moreover, since most of the seats lost by white men were lost to white women, and white women make up 6.8% of those who are now CEOs, whites still make up 92.6% of the Fortune 500 CEOs. Add to all of this the fact that Generation Z employees now coming into the workplace tend to be especially passionate and vocal about inclusiveness and fair treatment. electric vehicle industry continues to grow, returned to run the company for the third time, Americas national beer could soon be Mexican as Memorial Day weekend sales drop plunges Bud Light further into crisis. All of that filters downhill so that the main people who receive the consequences are the front line employees. Judith Marks is the CEO of Otis Elevator, which was spun off United Technologies in early 2020, making the list for the first time as its own business this year. To maximize your visibility, we encourage you to register with both Spencer Stuart and BlueSteps. That share rose to 86.2 percent in 2020 and was 86 percent in 2021. Women now represents slightly less than 13% of Fortune 500 CFOs. Read the first installment in the series:The Evolution of the Executive. What is amazing about these facts about the CEO demographics of the Fortune 500 is just how dominant they are toward the white male. But now, 20 years later, the new CEOs are not so new, and there are enough of them that it is possible to step back and look at the patterns that have emerged over these two decades. And it would take at least 26 skyscrapers to give each of those 5,089 executives and senior officials a corner office. Networking events like the one Buchanan attended years ago tend to be assembled based on connections. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices If that group were one giant U.S. company, itd be second only to Walmart in terms of size. The data for each year represents a [9], As of July2018[update], this is the list of the top 10 countries with the most Global 500 companies.[9]. Six S&P 500 and Fortune 500 companies had Black CEOs in 2021; 40 had Asian American CEOs; and Latinx/Hispanic executives led 20. "You had this explosion of social issues that were now very important to the younger employee population," Foster said. Ninety percent say they have no plans to either accept crypto as payment or hold crypto on their balance sheet in the next two yearsdown only slightly from 93% last year. Please purchase a SHRM membership before saving bookmarks. Home Statistics 47 Interesting Fortune 500 CEO Demographics. Moreover, the top six (United States, China, Japan, Germany, France and the United Kingdom) are the world's largest economies as estimated by the IMF (List of countries by GDP (nominal)). Atthe B Team, a collective of global business and civil society leaders working toward sustainability, accountability, and equality goals, we are calling on business leaders to establish voluntary and time-bound commitments to ensure gender-balanced and racially diverse C-suites and boardrooms by 2025and to deliver on these commitments. More public company CFOs approaching retirement are invited to join boards. The Fortune 500 saw the highest annual CFO turnover in 2008, when 19% of CFO positions changed hands. Offers may be subject to change without notice. CC Attribution Non-Commercial Share Alike, Fortune 500 CEOs, 2000-2020: Still Male, Still White. Although 28% of sitting CFOs sit on a corporate board which could include their own companys board only 7% serve on an outside Fortune 500 company board. Women and minorities, on the other hand, are more likely to reach out an olive branch to others. [5], These are the top 10 countries with the highest revenues from the top 500 companies as of August 2022. And at companies that discourage remote workespecially for executivestrying to find a diverse candidate for an executive role in Salt Lake City, versus Washington,D.C., is much harder because ofSalt Lake City's demographics, said Brian Breinholt, CHRO for Sorenson Communications LLC, a Salt Lake City-based company that provides communication devices for people with hearing disabilities. When looking at the last roles CFOs held before becoming CFO, divisional finance, controller, CFO and treasurer positions were the most common. His response to the inquiry? Everyone stands to benefit from a more diverse and equitable worldespecially business. proper attribution to Statista. But the companies split down the middle47% eachwhen asked whether that plan addresses so-called scope three emissions of suppliers and users. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Companies with a deep bench of finance talent tend to develop their top performers by rotation through diverse finance assignments and board exposure. This year's Fortune 500 shows a record number of female-led companies, at 44. It should have happened a decade earlier," he said. White men may have lost power, but they continue to be the dominant group in the corporate elite they held 96.4% of the Fortune 500 CEO positions in 2000, and still hold 85.8% in 2020. Now in the decade of delivery for sustainability, leaders are focused on translating ideals into action. Just as countries, businesses, cities, universities, and others have rallied behind the Paris climate agreement, this moment marks their opportunity to do the same for gender. The list is compiled and published annually by Fortune magazine. Like professional athletes and rock stars, Fortune 500 CEOs have annual incomes in the millions of dollars. Most of this emergent group is made up of white women, who held the top posts at 34 Fortune 500 companies last year, including the fourth and sixth largestCVS Health and General Motors, respectively. Another metric that helps reveal the long-term patterns is the number of newFortune 500 CEOs appointed each year (as opposed to the number who were in office in a given year). "I was part of the problem because I hadn't been intentional about building relationships with entrepreneurs of color," Buchanan said. [7], The following is the list of top 10 companies. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices Latino/a and black executives are underrepresented by 9 and 13 percentage points. sports and entertainment. No one envies that part of the Magic Kingdom. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. Looking around, the CEO of digital marketing agency Thesis could see that nearly every single one of the executives there was a white man. Politico, A Russian diplomat at the United Nations has quit, saying: "Never have I been so ashamed of my country as on February 24 this year." Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. And another 31% are working on a plan. Seventy-three percent of the senior executives, men and women, are white. All rights reserved. Progress may accelerate in the future as many organizations are focused on building a more diverse talent bench for the CFO role in the future, for example, by prioritizing female and diverse candidates for the CFOs direct reports. This has created an opening for current and retired CFOs, particularly for boards looking for financial experts for the audit committee. The most common primary routes up to the CFO role are controllership (22%), divisional finance (22%) and treasury (13%). Its often the case that the demographics of leadership are treated as a death sentence for the upward mobility of minority employees. Powered and implemented by Interactive Data Managed Solutions. Read the second installment in the series: The 'Professional Executive' Emerges. This would make the estimated average IQ of a Fortune 500 CEO to be 124. Only 1% of the Fortune 500 CEOs are African Americans, 2.4% are East Asians or South Asians, and 3.4% are Latinx. This edition of CEO Daily was edited by David Meyer. Apple CEO Tim Cook is the only openly gay CEO on the Fortune 500 list. One of his chief reasons for coming out, Cook, said, was to be a role model for rising executives. No company on the Fortune 500 list has more than 3 women in a top paid executive position. 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. And much has been documented about the progress or lack thereof that U.S. companies have made when it comes to leadership positions, especially midlevel managerial jobs. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices 78% of professionals say that they prefer to work for a Fortune 500 CEO who is active on social networking sites. Its an historic high-water mark that pushes their representation to 6.4%. Shes an associate professor at St. Louis University and co-founder of The Mouse & The Elephant, a consulting firm that helps corporations execute on diversity initiatives. Therefore, it was not until 1999, when Franklin Raines became CEO of Fannie May and Lloyd Ward became CEO of Maytag that there were African American CEOs ofFortune500 companies. As a family run organization for years that provided the Walton family with hundreds of billions, they have changed the lives of many with low prices and greater product accessibility. Consider this: If the CEO makeup of the Fortune 500 was reflective of U.S. demographics, there would be more than 65 Black CEOs (13.5%) leading America's largest public companies, compared to the current state of around 1.2%." Women in the Fortune 500 Fortune 500 diversity for women is also at a record high. 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