Researchers reviewing thousands of CEO appointments found firms appointing Black CEOs saw a short-term bump in market capitlization after the announcement.
“To be considered for appointment as CEO, a Black executive would have to repeatedly prove themselves over the course of their careers in ways White CEOs do not,” the researchers wrote. “As a result, newly appointed Black CEOs are likely to exhibit exceptional attributes relative to their White counterparts.”
, a senior partner at Korn Ferry who specializes in board and CEO inclusion. Often they are judged on “performance, not potential.”“I think you have folks that are very talented but never reach the CEO’s seat because it feels impossible to get there when you have all the head winds,” Parsons said, citing the stereotyping, bias and social exclusion Black leaders frequently face.
At first, Jeong and Murphy were surprised by their findings. But when they considered the ways in which Black leaders are facing “a higher bar” to reach those positions, it made sense, they said.
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