Hispanics in the C-Suite
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Summary presentation of primary and secondary findings and interviews with subject matter experts on the importance of diversity in the boardroom. ...

Summary presentation of primary and secondary findings and interviews with subject matter experts on the importance of diversity in the boardroom.

With comparisons against Hispanics and Caucasians in the two-tournament system of corporate America.

Further identifies the importance of mentors, specifically senior mentors, who help their protégées with obtaining stretch assignments and the opportunities for nominations into board of governance roles.

However, with narrow specifications, it is the efforts of the Hispanic executive to work twice as hard, be a subject matter expert in his/her field of interest, and obtain the competencies required, and outlined in this study, to further their chances to be the future of C-Suite Hispanics.

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  • Timelines: 2:59 – 4:25; 6:38 – 8:52; 9:37 – 11:06

Hispanics in the C-Suite Presentation Transcript

  • 1. Research Opportunity: TheBoardroomUnderstanding the challenge of Diversity and thepipeline for Hispanic Business ProfessionalsPresented by Ed Hernandez
  • 2. My agenda.  Introduce and explain the opportunity selected for study  Project Importance  Research Question  Hypothesis and research objective  Survey Results  Conclusion2 12/2/2011
  • 3. Project Importance  Limited research on the importance of diversity in the board room and how Hispanics represent a significant buyer power that lacks market reciprocity in Corporate America, specifically the Fortune 1000 companies in the United States.  This study leverages previous research and updates the current state of the Hispanic talent pipeline for board governance roles that will help understand the reason for diversity, the current status, and the gap that exists in the pipeline as it compares to the total population.3 12/2/2011
  • 4. Hypothesis & Research Objective  Ho: American Hispanics are proportionally represented in Fortune 1000 Corporate Boards.  H1: American Hispanics are not proportionally represented in Fortune 1000 Corporate Boards.  Research objective to understand the challenge and opportunity for American Hispanics to be proportionally represented on Fortune 1000 Corporate Governance Boards in the United States.4 12/2/2011
  • 5. The business case for Hispanic Diversity in the Boardroom 5 12/2/2011Start/Finish: 2:59 – 4:25; 6:38 – 8:52; 9:37 – 11:06
  • 6. Secondary Research  Increasing Chances for Hispanic Selection and Participation in the C-Suite  Contributes to understanding of where Hispanics stand in terms of their unique business knowledge, experience, and skills, and to provide some initial guidance regarding how Hispanics can increase their chances of being selected as value-added members…board directorship positions  “Who you know,” What you know,” and “What can you do with knowledge:  Board Competency Survey that identify items that could be further developed for non-corporate board members6 12/2/2011
  • 7. Secondary Research (cont.)  Increasing Chances for Hispanic Selection and Participation in the C-Suite (Survey Results)  Competencies for Board Governance:  Portfolio of Significant experiences and accomplishments  General leadership experience  Relationship between business and economic environment  Well honed area of expertise  Areas of Opportunity for Hispanic Executives seeking Board Positions:  Financial & Statistical Literacy  Knowledge of Organizations and Industries of Interest  Market Knowledge and Marketing Acumen7 12/2/2011
  • 8. Secondary Research (cont.)  A Leadership Repository for Board of Directors  “Need to represent the marketplace that they server or want to serve” – Steve Reinemund, Fortune 500 Corporate Director  Steps to strengthen the selection process for diversity:  Narrow specifications for director searches;  Modify the search process, and  Take greater responsibility by individual directors to bring Hispanic candidates8 12/2/2011
  • 9. Interview – Victor Arias, Sr.  Senior Partner, Korn/Ferry Institute (Executive Search Firm)  Economic environment slowing retirement of current Directors on Fortune 1000 companies  Corporate America only looking at CEOs/CFOs of public companies; look beyond at Board of Regents/Trustees, private companies, and non-profits to widen the net of potential placements  Minorities leave corporate America to start their own business; not stay and reduces pipeline  ½ of placements go the “Old Fashion Way”  Mentors should have political power and/or influence the organization and currently would lend to the status quo of current directors (i.e. White versus Hispanic Mentors)9 12/2/2011
  • 10. 86% of the F1000 have zero Hispanicrepresentation on the Board# of Companies with Hispanic Directors, by Count Two, 11 One, 120  Sample size = 935 of the F1000  2009 revenues of these companies = $11.3 Trillion  Total BOD seats at these companies = 9,800  Seats held by Hispanic-Americans = 142  Hispanic representation = 1.4%  804 Companies (86%) have ZERO Hispanic Directors  120 Companies (13%) have ONE Hispanic Director  11 Companies (1%) have TWO Hispanic Directors  (Data excludes non-US Hispanics) Zero, 804Source: Fortune 2009, Board-Ex 2009, Korn/Ferry analysis
  • 11. Interview – Carlos Orta  CEO, Hispanic Association for Corporate Responsibility (HACR)  Market reciprocity, 20-30 market/buyer share by Hispanics  Varied assignments across the United States out of Miami, as a Cuban-American was advised to leave Florida for value-add opportunities that would create a competitive advantage in the future by his mentor  Board Leadership opportunities in public institutions like City, County, and State Boards/Commissions (i.e. “Stamp of Approval”)  History of diversity led by African-Americans through Civil Rights movement and now Hispanics are becoming what constitutes as a minority  Be the best, solid track record is essential for success11 12/2/2011
  • 12. Survey Results12 12/2/2011
  • 13. Survey Results13 12/2/2011
  • 14. Survey Results14 12/2/2011
  • 15. Survey Results15 12/2/2011
  • 16. Survey Results16 12/2/2011
  • 17. VP Mentor, is it StatisticallySignificant at 95% Confidence Level?  Do you have a senior executive (VP level or above) as a mentor and/or corporate sponsor?  Caucasian (p1) – Yes, 36.1% (CI @ 27.2 – 45.0%)  Hispanic (p2) – Yes, 63.9% (CI @ 54.7 – 73.1%)  Null Hypothesis: p1 = p2  Reject Null Hypothesis at p- value of 0.00002 > 0.05  Hypothesis, Comparing Two Populations, Two-Sided Test17 12/2/2011
  • 18. Survey Results - Competencies18 12/2/2011
  • 19. Survey Results - Competencies19 12/2/2011
  • 20. Conclusion  There are significant opportunities for Diversity in the Boardroom.  This research identifies the board competencies identified in secondary research and applies them to a sample population  Obtains an update on the representation of skills necessary for Board appointments  Interviews allow for context on the importance of mentors  Identifies opportunities and awareness for individuals who would like to serve on corporate boards  Advocacy groups like HACR and Hispanic Directors will be knocking on the doors of the Fortune 1000…but will there be a pipeline to fill the opportunity?20 12/2/2011