Who's Still Being Stifled in the C-Suite? June 18, 2008 From the Inside Training Newsletter
By Margery Weinstein
Despite an African-American presidential nominee, and a woman who was a serious contender, businesses still haven't embraced women and minorities in the C-Suite, according to an assessment of Global 2,000, and other market-leading companies, by executive search organization IMD International Search and Consulting. In a survey entitled "The Changing Face at the Top," nearly 400 senior human resources executives from 24 countries shared insights on the demographic make-up of the C-Suite (the chairman/CEO and executive management team), as well as trends regarding talent demand and acquisition, diversity, and succession planning. Here are some of the report's key findings:
• Only 20 percent of all executive committee members are female, with nearly one-half of respondents reporting no females whatsoever among their executive committee members.
• 78 percent of respondents believe diversity is an important strategy, but only 13 percent believe the number of minorities in the executive suite will increase over the next three years.
• Approximately 20 percent of C-Suite executives are a different nationality than the country in which their headquarters are based. But less than 10 percent (9.2 percent of CEOs, 9.9 percent of CFOs, and 8.1 percent of COOs) are of an ethnic minority.
• Internal senior management development is falling short, as nearly one-third of CEOs, 30 percent of COOs, and one-half of CFOs are from outside the organization. Only 30 percent indicate they have an identified successor in place for CEO, CFO, and COO positions.
• Some 63 percent of respondents indicate their organizations engage in succession planning, but only 44 percent feel it is making a tangible and positive impact. Simultaneously, nearly two-thirds of respondents believe the impending Baby Boomer retirement will further increase the severity of the executive talent shortage.
• Almost 80 percent said talent acquisition is more difficult today than three years ago, but only two-thirds of respondents agreed that talent acquisition is among the top three concerns at the board level.
Editor's Note: What's the story at your organization when it comes to propelling females and minorities into the C-Suite of your organization? Does it come down to random chance, or are you making a concerted effort? Join the discussion on Training Day.
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