Thursday, November 01, 2007
Blacks in the top chair
The resignation of E. Stanley O'Neal of Merrill Lynch (on the back of massive losses in mortgage-backed securities well out of proportion to peer companies) has triggered a certain amount of hanky-twisting about the prospects for black chief executive officers. This story in the New York Times is one example.
This is a topic about which I have no strong opinion, but three small points to make. First, it is only about now that we should expect to have significant numbers of black candidates for Fortune 500 CEO jobs, because the children of the civil rights era are only now reaching their mid-fifties, the usual age for big company CEOs. Second, the CEO's job has become far more insecure in the last 15-20 years, and especially in the last decade. That decline in CEO job security seems to be accelerating just as blacks have a real shot at the top job. Stan O'Neal lost his job because boards no longer tolerate systemic errors in judgment that result in billions in actual losses, not because he is black.
Finally, the graphic attached to the Times story really is impressive, at least for those of us who remember the days when the only blacks in top jobs ran family companies:
No, the job is not done by a long shot, but neither should we fail to celebrate the progress.
3 Comments:
By 
Christopher Chambers, at
Thu Nov 01, 04:48:00 PM:
Kudos on this post. Not the usual right wing mucous plug. LOL. Indeed, many on this blog might find it hard to believe, but most black people don't attribute O'Neal's firing to racism. The interesting point of comparison is the quality of the parachute. Most overreaching CEO's canned for doing exactly what the private equity tools want--make money and make it fast--could fund a small town with the severance. As long as Stan got his "we" were happy. hahahaha
Insider info: Ken Chenault said Stan O'Neal was sort of a cold fish and a loner, didn't take bouncing ideas too well. Errors are errors, but basic interpersonal skills can only ameliorate a bad vide and a bad situation. His personality just made it worse.
By 
, at
Thu Nov 01, 08:12:00 PM:
A former CEO with a failed run at the US Senate is Herman Cain. I would like to have seen him win a Senate seat.
It's my experience that, usually, the best are tapped for the top jobs. I emphasize usually. How many times have you shaken your head and wondered how THAT one made it to the top. In any case, the inept and unlucky don't last long.
By , at
Sun Nov 04, 10:34:00 PM:
