Last week, Charlie Scharf, CEO, of Wells Fargo blamed the lack of diversity at the bank on a “very limited pool of Black talent to recruit from.” His statement is a slap in the face to the Black professionals who have sought employment at this institution and were denied, despite possessing the qualifications for the job.
Despite gains in degree attainment over the years for Black Americans, Mr. Scharf’s comments seem to say, Black candidates, even those that are qualified, are not good enough. Last week it was the CEO of Wells Fargo but based on the lack of diversity in the financial services sector, specifically for Black employees, we know that his thoughts are not that far off from many others. For perspective, of the Fortune 500 CEOs, less than 1 percent are Black.
Mr. Scharf, a diverse institution, is a strong institution. According to the McKinsey Global Institute’s 2018 “Delivering Through Diversity” report, companies in the top-quartile (25 percent) for gender and ethnic/cultural diversity on executive teams were 21 percent and 33 percent more likely respectively to outperform their peers on profitability. On the other hand, that same report found companies in the bottom-quartile were 29 percent less likely to achieve above-average profitability. Unfortunately, American institutions, from Corporate America to Capitol Hill, are weakened when there is a lack of diverse perspectives and inclusive environments.
The CBC Diversity Task Force prioritizes the inclusion of African Americans at all levels of the public and private sectors. Through the Task Force, we have worked with private companies and membership organizations to recognize that diversity is good for the bottom line, develop best practices to help firms increase diversity, and to strengthen networks of diverse candidates.
Wells Fargo, we are here to help.
