The Top Black CEOs
By Keith Boykin, in business
Monday, October 29 2007, 11:06AM
We have gotten several requests from readers who would like us to produce more business and financial information on this site. In response to those requests and the growing financial sophistication of the community, we are today launching our new business category of the web site. This is the first article in that category, but we will be writing more about these issues in the days, weeks and months to come.
On the outside, life is good for the top black CEOs. The three black men who run Fortune 500 companies have risen to the top of their fields and all of them take home millions of dollars in annual income. It's a rare achievement that only a handful of African Americans have been able to reach, all of them in the past decade.
But late last week their interconnected business worlds started to unravel. First there was the news that Merrill Lynch CEO Stan O'Neal was under fire after his company posted a record $2.2 billion loss and he authorized merger conversations with another bank without consulting his board. By Friday morning, the business media were reporting that O'Neal was history. Then on Friday afternoon, Time Warner's stock surged on the unexpected news that its CEO, Richard Parsons, might be resigning from his post as well.
As the events of the past week prove, it's not easy being a CEO. And although Wall Street supposedly doesn't see color except for green, it's hard to ignore the obvious news that 2 of the 3 top black CEOs could disappear in a week.
Parsons has been at the helm of Time Warner for five and a half years, and the company has not made a "final decision" on his tenure, but those in the media say that the change is "coming soon." His contract expires in May 2008, and he may continue on as chairman of the campany while his successor takes over.
Time Warner is the largest traditional, content-producing media group in the world. It owns AOL, CNN, HBO, Time magazine and several other properties. Some have urged the company to spin off the struggling AOL but so far that hasn't happened. It may be more likely to happen once Parsons has left. But Wall Street doesn't seem to support Parsons. Although Time Warner put out a statement denying Parsons's imminent departure, investors traded up Time Warner's stock on the hope that Parsons might be on his way out.
Meanwhile, Stan O'Neal has presided over his own corporate giant at Merrill Lynch. But in the face of the collapse of the subprime mortgage industry, Merrill found itself overexposed with risky securities that had dropped in value in the past year. After years of billion dollar profits, it only took one really bad quarter to change the impression. That means that O'Neal's departure would be the first major business casualty in the wake of the subprime lending crisis.
If it's not easy being a CEO, I imagine it's even harder being a black CEO. I would like to think that America has passed the point of simple racial mathematics, but that may be wishful thinking. Still, I hope that corporate boards will judge future black business leaders based on their individual skill and not on the success or failure of O'Neal at Merrill Lynch. Everybody deserves to be judged on his or her own merits.
O'Neal may be leaving, but he won't be headed to the poor house. According to analysts, O'Neal would walk away with a severance package valued at $159 million. With a compensation package like that, maybe getting fired isn't such a bad thing after all.
Our general disclosure policy with our new business coverage requires me to tell you that I own stock in Time Warner Company (TWX).
Comments conceal
QT
October 29 2007, 11:26AM
KEITH, I LOVE THIS FINANCIAL AND BUSINESS ARTICLE...I'D LOVE TO BE IN STAN O'NEAL'S POSITION RIGHT NOW...I WOULD MOVE ON AND START MY OWN BUSINESS...ONE MUST ALWAYS HAVE A PLAN WHEN WORKING FOR CORPORATE AMERICA OR WORKING FOR ONE'S SELF...ONE SHOULD HAVE AS MANY SOURCES OF INCOME AS POSSIBLE.
alicia banks
October 29 2007, 12:32PM
i find very little time or desire to pity any rich moguls...no matter what color they are
kkkapitalism is becoming more ruthless daily...
its ruthlessness is universal and colorless
i pity the permanent rainbow underclasses only...
peace
ab
MidwestGuy
October 29 2007, 1:20PM
Keith, are you being a bit facetious in your hope that people (in this case coporate leaders) don't judge future black leaders based on the actions of a few?
The last big news coming from an ousted CEO that I can recall is Franklin Raines. We all waited to see when the next shoe would drop. Yet, Chenault (who I think is pictured above), now seems like the last man standing.
I didn't realize that people wanted more business financial info on here. It's a rather lofty commitment for you because most people aren't interested in commenting on stuff like this. It's the same on much larger sites as well.
Good luck though.
Anonymous
October 29 2007, 1:44PM
Keith,
I wish you would write a post about gay businesses that refuse covertly to market to black, Latin, and Asian gay consumers when they exclude depictions of these groups in their advertisements. I'm so tired of seeing the same white sex objects to sell gay-related merchandise. People of color are consumers too.
The fashion industry (an huge, complex business with high profile gay managers, designers, executives, buyers, and agents) is another example of a business that increasingly excludes people of color systematically (the appearance of the wonder Andre J. on the Paris Vogue was a terrific aberration, but an aberration all the same and he did not occupy the cover alone).
These are just some of the topics that might galvanize your great new sub-column on business.
Respectfully yours.
PS: Midwest Guy, I welcome a column on business and am likely to respond.
Cadence
October 29 2007, 3:15PM
A business coloumn is still a good idea, even if people don't comment. We need to expand our horizons by reading and researching a variety of subjects, so that we can become more aware of what's going on in the world, and so we can take advantage of all the opportunities that are available to us.
Anonymous, it's not just gay advertisers who think the gay community is made up of only White men. I'm glad for the mainstream companies that advertise on LOGO, and in gay themed publications, but they need to be told that the gay community is very diverse.
Karmatic
October 29 2007, 4:30PM
I think this is refreshing..
But if past indicators are of any measure, topics that contain
Sex, Color and Class are most popular (or controversial) in terms of the number of comments given...I read just about everything , but a little spice is nice ..lol
Jared
October 29 2007, 5:37PM
I too think a business column would be great, as an investor for years, I would love to see what some of my fellow black gays are doing along those lines. And, we could share some of our own advice to those who are just starting, something, I wish every black man and woman in this country would do, and, start at a young age. And, if you have kids, start with them when they are young, building wealth is a good thing, and, not as hard or complicated as many think it is.
@ anonymous, wow, that would be some powerful stuff and good topic, since it would open a can of worms that the gay community as a whole would not want aired!
Justin
October 29 2007, 5:37PM
It's great to be business savy,but as far as I'm concern, corporate America will always be a bastion for greed, corruption, croynism and nepotism. CAPTITALISM SUCKS!!!
repossessions
October 29 2007, 6:19PM
Is it coincidental that these three black business titans are light skinned? I'm only asking...Is it relevant? You tell me
Billy
October 29 2007, 6:28PM
If there is request for you business and financial information than their are obviously savvy readers and bloggers on the site. I think you're past due because I have always saw you as a smart individual-so do the damn thing! Great article.
cmoney
October 29 2007, 8:59PM
I think an occasional article on business and financial matters is a great idea, especially if there is a tie in to the Black gay community. It would be great to see articles on Black gay entrepreneurs and businesses, both large and small. New clubs, clothing, fashion, travel, theatrical production companies, and traditional businesses as well. Where is a Black gay medical practice or banker when you need one? As for these CEO's--it's good to know that they had the big time jobs to lose in the first place. These guys were top performers in their fields. They had to be the best because no one is giving out any handouts on Wall Street. Their presence reflects real progress. I don't see their loss of position as anything significant--White CEO's get canned all the time. As much as other countries talk about how racist America is, I have yet to see a Black CEO of a European, Latin American or Asian based corporation.
Sandy
October 30 2007, 12:04AM
Mr. Boykin, thank you for the article. I read about Mr. O'Neal, Mr. Parson and Mr. Chenault yesterday on a business blog and today in the NY news papers. Its a big story. The markets are rocking because of the home loan business going bust. More heads may role behind bad business decisions. It's business. I hope as one blogger stated, that they decided to do something on their own. They have the money to do whatever they want.
elg
October 30 2007, 9:53AM
I like the idea of having business and financial info on here. It's hard to enjoy life if your finances aren't in order. I'd like to know about black gays who are successful in business. This could be an inspiration to someone. Maybe Keith can address some of the issues raised by Anonymous in future articles.
MidwestGuy
October 30 2007, 10:16AM
Keith, there you have it. Your readers would like to hear more articles on "gay" business leaders.
Jamal
October 30 2007, 11:15AM
Midwest, a couple of posters who want "gay" business people does not mean everyone does, most just would like some financial news, which is a good thing for anyone gay or straight. And, it would be one short list if it were only gay business people of any race, since I can't think of one who is a Fortune 500 CEO and out of the closet.
I think you mean well, but, the negative sarcasm is a bit much since this board just does not seem to fit what you need daily in the realm of gay and non-gay issues, not a diss of you, just an observation. The world of black people isn't monolithic, and nor are black gays.
MidwestGuy
October 30 2007, 12:59PM
Jamal, "I" come to the board to read about gay issues. If I wanted to read about heterosexual CEO's and other business leaders, I wouldn't use this site as there are tons of sites where I can get that from.
I don't think it's monolithic to come to a gay blog and expect read about gay things outside of sex, homophobia and protests.
Therefore, I think it would be great to read about "gay" business leaders and entreprenuers. I don't care if they are not in 500 companies. There are plenty of inspiring artists (non-singing), heads of non-profits, etc. who are gay and doing big things from a business/financial perspective.
I didn't see anything negative about my post. And yes, your observation of what I seem to need does not reflect my reality.
castiron
October 31 2007, 11:51AM
These guys are corporate titans. They don't need us to sing a sad song for them. Race probably has little or noththing to do with their depature. Wall Street is a numbers game. I bet O'neil and Parson, who have obviously bought into the Wall Street modus operandi, would agree that if you don't bring in the right numbers, then you need to move over and let the next guy take the helm.
I like this new section. We want more politics and business.
MLee
October 31 2007, 3:08PM
Stan O’Neal’s departure from Merrill Lynch doesn’t hurt him too bad, if his stock options are still worth anything after the fallout. O’Neal retires with stock awards and benefits worth $16.5 million and the guarantee of an office and an executive assistant for three years. Did you know that O’Neal started his career on the assembly line at General Motors Corp.?
Ron Lee
November 2 2007, 4:34PM
Don't cry for them "BlACK AMERICA",these guys are millionaires on the verge of becoming billionaires and if they don't maintain a plan B&C as the Black middle and lower middle classes do then shame on them. Mean while,some one should inform them America has a couple of Cities that are Black Meccas and are starved for some creative talents with deep pockets i.e...Detroit,New Orleans,Atlanta,Houston,Dallas,E.ST.Louis ,hell if anyone of them drop me a dime or email, I'll give them a BILLION DOLLAR IDEAL. HOLLA !!! They should be looking toward AFRICA there will be 2 BILLION PEOPLE living there by 2020 so will LATIN AMERICA! GOT THAT BILLION DOLLAR IDEAL MILLIONARIES & BILLIONARIES HOLLA !!! wesbyw@aol.com
Charley
November 8 2007, 1:16PM
O'Neal is the grandson of a slave from Alabama. The corporations like Merrill/Lynch of which he was CEO, were started and run mainly by white establishment. (see "Pursuit of Happiness" with Will Smith) Imagine you are him, and not allowed to this day into their restricted country clubs to paly golf, and where the only blacks allowed are in the kitchen washing dishes. Would you have company loyalty or do a good job as CEO ? Probably not. This is why he tried to sell the company behind Merrill/Lynch's back to Wachovia. He was looking after his own interests because of the unfairness in his roots.
FRE
November 16 2007, 1:51AM
It would be good to have a column about successful gay business persons and successful black business persons.
Regarding CEOs, it should be noted that CEOs lack job security. Generally, however, they are sufficiently wealthy to weather being sacked.
It seems odd that wealthy people are still being refered to as millionaires. In the 1950s, a millionaire would have been considered wealthy, but now, there has been so much inflation that being a millionaire is simply middle class. What a person's net worth would have to be for him to be considered wealthy I'm not sure, but I'm inclined to set it at $10 million.
Ken
December 19 2007, 10:53AM
Stan O'Neal, like Prince at Citigroup, fell because of the recklessness of some of the decisions made under his watch. There are still many instances of prejudice in the business world, but considering the crisis and his unauthorized overtures to Wachovia, this doesn't sound like one of them. It should be noted that Citigroup went on to name an Indian as it's head, making a man of color the captain of arguably the largest company in the world.
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