DIVERSITY IN CORPORATE GOVERNANCE
A Quantitive Analysis of Diversity and Inclusion in Texas’ Fortune 1000 Companies March 2018
DIVERSITY IN CORPORATE GOVERNANCE
A Quantitative Analysis of Diversity and Inclusion in Texas’ Fortune 1000 Companies
with an analysis comparing data from 2016 to 2018 and an analysis of the Oil & Gas Industry
March 2018
FOREWORD
In the last twenty years there has been an abundance of evidence showing that diversity promotes growth, creativity, and business innovation. We have also seen the disastrous consequences of homogenous thinking, as revealed during the national economic recession of 2008. We are fortunate to live in Texas, one of the most diverse states in the country, and that diversity offers us the potential for growing our markets, improving the ways we work, and leaving better lives for future generations. However, today this potential for growth and improvement is still not fully realized.
We at the National Diversity Council invite you to review and contemplate this research on diversity in the corporate governance of Texas companies. In this report you will find that our workforce is highly diverse, but women and People of Color are not succeeding at comparable rates to their white and male peers. The executive leadership and board membership of our most successful companies are still largely homogenous, as demonstrated by the lack of racial, ethnic, and gender diversity in those leadership positions. Though all companies need to implement organizational and structural changes, we can improve the economic and social successes in our state and nation by working together to increase diversity and inclusion in our corporations.
In this report you will find data on the diversity of corporate executive leadership and board membership broken down into five areas. Three of these areas assess the race, ethnicity, and gender data for the 101 Fortune 1000 companies located in Texas, as compared with the demographic data for the state. The fourth area breaks down these companies regionally: Harris and Dallas/Fort Worth Counties. The last area is an industry assessment in workforce and corporate governance diversity of Oil and Gas—the largest industry in the state. We also compare corporate governance diversity data from 2016 to 2018 using one of our reports titled, “Workforce Diversity and Corporate Governance, August 2016.”
Texas is one of the most diverse states in the country, but without intentional and strategic intervention we will not be able to attain diversity in corporate governance. Join us in working towards making Texas an inclusive and economically thriving state.
Dennis Kennedy Angeles Valenciano Founder and Chairman Chief Executive Officer National Diversity Council National Diversity Council
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 4
COMPANIES SURVEYED 5 • Breakdown by County 6
TOP 25 MOST DIVERSE FORTUNE 1000 COMPANIES 8 • Top 25 of 2016 & 2018 9
METHODS 10
RACIAL DIVERSITY
CORPORATE GOVERNANCE DATA 13
EXECUTIVE LEADERSHIP 14
BOARD MEMBERSHIP 15
EXECUTIVE LEADERSHIP, 2016 – 2018 16
BOARD MEMBERSHIP, 2016 – 2018 17
HISPANIC/LATINO DIVERSITY
CORPORATE GOVERNANCE DATA 19
CORPORATE GOVERNANCE 20
GENDER DIVERSITY
CORPORATE GOVERNANCE DATA 22
EXECUTIVE LEADERSHIP & BOARD MEMBERSHIP 23 • Gender Diversity by Race 24
CORPORATE GOVERNANCE DATA, 2016 – 2018 25
EXECUTIVE LEADERSHIP & BOARD MEMBERSHIP, 2016 – 2018 26
CORPORATE GOVERNANCE, 2016 – 2018 27
2
COUNTY DIVERSITY
HARRIS • Executive Leadership and Board Membership Data 29 • Corporate Governance Data 30 • Racial Diversity 31 • Gender Diversity 32
DALLAS/FORT WORTH • Executive Leadership and Board Membership Data 33 • Corporate Governance Data 34 • Racial Diversity 35 • Gender Diversity 36
OIL & GAS DIVERSITY
COMPANIES SURVEYED 38 EXECUTIVE LEADERSHIP AND BOARD MEMBERSHIP DATA 39 CORPORATE GOVERNANCE DATA 40 RACIAL DIVERSITY 41 GENDER DIVERSITY 42
KEY FINDINGS AND CONCLUDING REMARKS 45
REFERENCES 46
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EXECUTIVE SUMMARY
This report examines the 2018 diversity composition of executive leadership and board membership (“corporate governance”) of Texas Fortune 1000 companies. We researched biographical data on the race, ethnicity, and gender of those comprising the corporate governance for the companies, which we acquired from various online sources, including Bloomberg, Wall Street Journal, Reuters, and the U.S. Census. We were able to collect and analyze data for 101 Fortune 1000 companies.
We found that the overwhelming majority of those in executive leadership and board members are non-Hispanic white males. This was true across Texas, in Harris and Dallas/Fort Worth counties, and across industries, especially within the Oil & Gas industry. The data is not surprising and confirms the need for organizational change in the diversity and inclusion arena.
This study shows that the representational gap between non-Hispanic white males and People of Color is large and significant. In most cases Women of Color constitute only 1-2% of corporate governance, whereas non-Hispanic white males constitute on average 80%. Representation from the Hispanic/Latino populations resembles that of the Women of Color populations, accounting for, on average, between 1-2% across executive leadership and board membership positions. This average is contrary to the fact that the Hispanic/Latino population made up over 39% of all Texans in 2016. White women make up the largest historically minoritized group, constituting between 12 to 17% of corporate governance across all sectors.
In comparing board member diversity to executive leadership for 2018, we found that board diversity is slightly higher: by 1-2% for Women of Color and 2-3% for Men of Color, and between 2-3% for women generally.
Between 2016 and 2018, there was no discernable improvement for diversity.
With regards to racial and gender demographics of companies located in Harris and Dallas/Fort Worth counties, we found that companies headquartered in Dallas/Fort Worth had on average almost 5% greater gender diversity than companies headquartered in Harris.
Given that the Oil & Gas industry forms a large part of the Texas Fortune 1000 companies, we analyzed the racial and gender demographics of the Texas Oil & Gas industry. We found that over 70% of the Oil & Gas extraction industry workforce is made up of women, but women constitute only 14% of the overall industry’s executive leadership. The gender disparity is larger than that found for race and ethnicity: People of Color constitute 30% of the Oil & Gas extraction industry workforce, but only about 6% of the overall industry’s corporate governance.
To conclude this report, we provide a summary of key insights, as well as two areas of opportunity. The first area of opportunity is targeting the Board of Directors for increasing corporate governance diversity. The second area is to change the language around “predominately white and male industries” by highlighting actual workforce diversity and the problems associated with an organizational culture and talent management structure that systemically favors one group over others.
4
COMPANIES SURVEYED
Adams Resources Group 1 Automotive Alliance Data Systems Halliburton American Airlines HCC Insurance Holdings American National Insurance Company HollyFrontier Anadarko Huntsman Andeavor iHeart Media Apache Insperity AT&T Jacobs Atmos Energy JC Penney Baker Hughes KBR Benchmark Electronics Kimberly-Clark Brinker International Kinder Morgan Buckeye Partners Kirby Builders FirstSource Lennox International Calpine Linn Energy Cameron International Marathon Oil Celanese Michaels Stores Center Point Energy MRC Global Cinemark Holdings National Oilwell Varco Comerica Incorporated Nationstar Mortgage Holdings Commercial Metals Neiman Marcus ConocoPhillips Nexeo Solutions Crestwood Equity Partners LP Noble Energy Crown Castle International NuStar D.R. Horton Oceaneering Darling Ingredients Oil States Dean Foods Oxy Dell Technologies Par Pacific Holdings Denbury Patterson UTI Distribution NOW Phillips 66 Dr Pepper Snapple Pioneer Natural Resources Dynegy Plains GP Holding Enbridge Primoris Services Enlink Midstream Quanta Services, Inc. Enterprise Product Partners Rent a Center EOG Resources Rush Enterprises EP Energy Sabre Exxon Mobil Sally Beauty Flowserve Service Corporation International Fluor Southwest Airlines FMC Technologies Southwestern Energy Fossil Group Stewart Gamestop Sunoco LP Genesis Energy Superior Energy Services
5
Sysco United Services Automobile Association Targa Resources Valero Energy Tenet Healthcare Waste Connections Texas Instruments Waste Management Torchmark Westlake Chemical Transfer Energy Willbros Trinity Industries
Surveyed Companies by County
HARRIS
Adams Resources Kirby American National Insurance Company Linn Energy Anadarko Marathon Oil Apache MRC Global Baker Hughes National Oilwell Varco Buckeye Partners Nexeo Solutions Calpine Noble Energy Cameron International Oceaneering Center Point Energy Oil States ConocoPhillips Oxy Crestwood Equity Partners LP Par Pacific Holdings Crown Castle International Patterson UTI Distribution NOW Phillips 66 Dynegy Pioneer Natural Resources Enbridge Plains GP Holding Enlink Midstream Quanta Services, Inc. Enterprise Product Partners Service Corporation International EOG Resources Southwestern Energy EP Energy Stewart FMC Technologies Superior Energy Services Genesis Energy Sysco Group 1 Automotive Targa Resources Halliburton Trinity Industries HCC Insurance Holdings Waste Connections Insperity Waste Management KBR Westlake Chemical Kinder Morgan Willbros
DALLAS/FORT WORTH
Alliance Data Systems AT&T American Airlines Atmos Energy
6
Brinker International Jacobs Builders FirstSource JC Penney Celanese Kimberly-Clark Cinemark Holdings Lennox International Comerica Incorporated Michaels Stores Commercial Metals Nationstar Mortgage Holdings D.R. Horton Neiman Marcus Darling Ingredients Primoris Services Dean Foods Rent a Center Denbury Sabre Dr Pepper Snapple Sally Beauty Exxon Mobil Southwest Airlines Flowserve Sunoco LP Fluor Tenet Healthcare Fossil Group Texas Instruments Gamestop Torchmark HollyFrontier Transfer Energy
OUTSIDE OF HARRIS AND DALLAS/FORT WORTH COUNTIES
United Services Automobile Association Andeavor Valero Energy NuStar iHeart Media Benchmark Electronics Rush Enterprises Huntsman Dell Technologies
7
TOP 25 MOST DIVERSE FORTUNE 1000 COMPANIES
Of the 100 Texas Fortune 1000 corporations surveyed, the following organizations had the highest percentage of women and minority inclusion (Black or African American, American Indian or Alaskan Native, Asian, Pacific Islander, Hispanic or Latino) in executive leadership positions or on the Board of Directors.
1. JC Penney 2. Kimberly-Clark 3. Neiman Marcus 4. Texas Instruments 5. Center Point Energy 6. Commercial Metals 7. Dynegy 8. ConocoPhillips 9. United Services Automobile Association 10. Cinemark Holdings 11. Marathon Oil 12. Dr Pepper Snapple 13. KBR 14. AT&T 15. Oxy 16. Michaels Stores 17. American Airlines 18. Phillips 66 19. Westlake Chemical 20. NuStar 21. Comerica Incorporated 22. Valero Energy 23. Brinker International 24. Enbridge 25. Waste Management
8
2016 & 2018 TOP 25 MOST DIVERSE FORTUNE 1000 COMPANIES
2016 2018 1. Kimberly-Clark Corporation 1. JC Penney 2. Commercial Metals Company 2. Kimberly-Clark 3. Texas Instruments Incorporated 3. Neiman Marcus 4. CenterPoint Energy, Inc. 4. Texas Instruments 5. EP Energy Corporation 5. Center Point Energy 6. Alliance Data Systems 6. Commercial Metals Corporations 7. Dynegy 7. Brinker International, Inc. 8. ConocoPhillips 8. Tesoro Corporation. 9. United Services Automobile 9. J.C. Penney Company, Inc. Association 10. United Services Automobile 10. Cinemark Holdings Association 11. Marathon Oil 11. Waste Management, Inc. 12. Dr Pepper Snapple 12. Oil States International, Inc. 13. KBR 13. Sally Beauty Holdings, Inc. 14. AT&T 14. Energy Future Holdings Corp. 15. Oxy 15. Flowserve Corporation 16. Michaels Stores 16. AT&T 17. American Airlines 17. Baker Hughes Incorporated 18. Phillips 66 18. American Airlines Group Inc. 19. Westlake Chemical 19. Marathon Oil Corporation 20. NuStar 20. Cinemark Holdings, Inc. 21. Comerica Incorporated 21. Comerica Incorporated 22. Valero Energy 22. Benchmark Electronics, Inc. 23. Brinker International 23. Dr. Pepper Snapple Group, Inc. 24. Enbridge 24. Westlake Chemical Corporation 25. Waste Management 25. Whole Foods Market, Inc.
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METHODS
The study is based on quantitative data collected from 101 Fortune 1000 Companies in the State of Texas. We have defined positions of “leadership” to include two areas across these corporations:
1) Executive leadership or individuals in senior management 2) Members of Board of Directors
To measure racial and ethnic diversity for the companies, we searched and analyzed biographical information for board members and executive leaders. We retrieved this information from official company websites or other public sources including www.bloomberg.com, www.reuters.com, and www.wsj.com. In cases where this data was not publicized, we sent emails to media and news departments in the companies requesting biographical information.
Diversity was measured using a census-based approach, drawing racial and ethnic categories from the most recent 2010 United States Census Survey. With this approach, “minority” and “People of Color” are used to refer to Black or African American, American Indian or Alaskan Native, Asian, Pacific Islander, and Hispanic or Latino populations.
We also compared company racial and gender diversity to county and state population demographics. Using the 2010 United States Census data, we retrieved demographic data for racial and ethnic minorities in Harris and Dallas/Fort Worth Counties and compared this data to data for Fortune 1000 companies in those counties. We did the same to compare state demographics to these companies.
For the Oil & Gas industry survey, we conducted the same research as outlined above, and we also gathered racial and gender demographics from the Oil & Gas extraction workforce, a component of the Oil and Gas Industry. We drew these numbers from EEO-1 data published by the U.S. Equal Employment Opportunity Commission in 2015 under the NAICS-3 Code for the industry. In comparing the Oil & Gas extraction workforce data published by the EEOC to the data from Oil & Gas Fortune 1000 companies, we assumed that any difference in demographics across these two areas and between 2015 and 2018 was negligible.
Lastly, we compared 2018 corporate governance diversity with the data we used in our 2016 publication, “Workforce Diversity and Corporate Governance.” We excluded the following companies in the 2016 study due to insufficient data, but these companies are included in the current report:
• Adams Resources & Energy, Inc. • Genesis Energy, L.P. • Alliance Data Systems Corporation • Kirby Corporation • American National Insurance • Linn Energy, LLC Company • Michaels Stores, Inc. • Benchmark Electronics, Inc. • Neiman Marcus Group LTD Inc. • Buckeye Partners, L.P. • Nexeo Solutions Holdings, LLC • EP Energy Corporation • Oil States International, Inc.
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• Primoris Services Corporation • Trinity Industries, Inc. • Superior Energy Services, Inc. • Waste Connections, Inc. • Torchmark Corporation
Unless otherwise noted, all tables and figures represent data collected in 2018.
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RACIAL DIVERSITY:
AN ANALYSIS OF WHITE AND PEOPLE OF COLOR DEMOGRAPHICS IN CORPORATE GOVERNANCE
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CORPORATE GOVERNANCE DATA
The first two tables show the racial, ethnic, and gender make-up of executive leaders and board members. The last table aggregates these numbers as corporate governance. In 2018 there were a total of 2000 corporate leaders and board members in Texas’ Fortune 1000 companies.
Total Executive Seats 1015
White Men 822 80.99%
White Women 134 13.20%
Men of Color 48 4.73%
Women of Color 11 1.08%
Total Board Seats 985
White Men 753 76.45%
White Women 141 14.31%
Men of Color 69 7.01%
Women of Color 22 2.23%
Total Corporate Governance 2000 Seats
White Men 1575 78.75%
White Women 275 13.75%
Men of Color 117 5.85%
Women of Color 33 1.65%
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EXECUTIVE LEADERSHIP
Figures 1 and 2 show the racial composition of executive leadership across Texas Fortune 1000 companies. 80% of executive leadership is composed of non-Hispanic white males.
4.73% 1.08%
13.20%
White Men White Women Men of Color Women of Color
80.99%
Figure 1: Executive Positions Held According to Race, Texas Fortune 1000
900 822 800
700
600
500
400
300
200 134 100 48 11 0 White Men White Women Men of Color Women of Color
Figure 2: Executive Positions Held According to Race, Texas Fortune 1000
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BOARD MEMBERSHIP
Figures 3 and 4 show the racial composition of board membership across Texas Fortune 1000 companies. We see about 5% more racial and gender diversity compared to executive leadership.
2.23% 7.01%
14.31% White Men White Women Men of Color Women of Color 76.45%
Figure 3: Board Positions Held According to Race, Texas Fortune 1000
800 753
700
600
500
400
300
200 141 100 69 22 0 White Men White Women Men of Color Women of Color
Figure 4: Board Positions Held According to Race, Texas Fortune 1000
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EXECUTIVE LEADERSHIP, 2016 – 2018
The table and Figure 5 compare racial diversity across executive leadership for Texas’ Fortune 1000 companies for 2016 and 2018, showing no meaningful change.
Racial Diversity 2016 2018
White Men 81.4% 80.99%
White Women 13.4% 13.20%
Men of Color 4.3% 4.73%
Women of Color 0.9% 1.08%
81.40% 80.99%
2016 2018
13.40% 13.20% 4.30% 4.73% 0.90% 1.08%
White Men White Women Men of Color Women of Color
Figure 5: Executive Leadership Racial Diversity by Percentage, 2016 – 2018
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BOARD MEMBERSHIP, 2016 – 2018
The table and Figure 6 compare racial diversity across board membership for Texas’ Fortune 1000 companies for 2016 and 2018. There was a less than 2% increase in racial diversity over the course of two years.
Racial Diversity 2016 2018
White Men 77.3% 76.45%
White Women 13.3% 14.31%
Men of Color 6.8% 7.01%
Women of Color 2.7% 2.23%
77.30% 76.45%
2016 2018
14.31% 13.30% 6.80% 7.01% 2.70% 2.23%
White Men White Women Men of Color Women of Color Figure 6: Board Member Racial Diversity by Percentage, 2016 – 2018
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HISPANIC/LATINO DIVERSITY:
AN ANALYSIS OF HISPANIC AND LATINO DEMOGRAPHICS IN CORPORATE GOVERNANCE
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CORPORATE GOVERNANCE DATA
The first two tables show the number and percentage of executive and board positions held by Hispanics/Latinos in Texas’ Fortune 1000 companies. The last table aggregates these numbers. Approximately 1.50% of all corporate governance positions are held by Hispanics/Latinos.
Total Executive Seats 1015
White Men 822 80.99%
White Women 134 13.20%
Men of Color 48 4.73%
Women of Color 11 1.08%
Hispanic/Latino (Men & Women) 11 1.08%
Total Board Seats 985
White Men 753 76.45%
White Women 141 14.31%
Men of Color 69 7.01%
Women of Color 22 2.23%
Hispanic/Latino (Men & Women) 19 1.93%
Total Corporate Governance Seats 2000
White Men 1575 78.75%
White Women 275 13.75%
Men of Color 117 5.85%
Women of Color 33 1.65%
Hispanic/Latino (Men & Women) 30 1.50%
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CORPORATE GOVERNANCE
Figures 7 shows the Hispanic/Latino population demographics for Texas. Figure 8 contrasts the non-Hispanic white populations with People of Color in corporate governance and shows the composition of Hispanics/Latinos within this latter category.
39.1% non-Hispanic/Latino Hispanic/Latino
60.9%
Figure 7: Hispanic/Latino Population in Texas, Census Estimate 2016
1.50% White
Hispanic/Latino
92.50% 6.00% Other People of Color
Figure 8: Corporate Governance Hispanic/Latino Diversity, Texas Fortune 1000
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GENDER DIVERSITY:
AN ANALYSIS OF MEN AND WOMEN DEMOGRAPHICS IN CORPORATE GOVERNANCE
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CORPORATE GOVERNANCE DATA
The tables below show the number and percentage of executive and board seats held by women and men across Texas Fortune 1000 companies in 2018. On average, women held almost 16%, or less than 1 out of every 6, corporate governance positions across Texas.
Total Executive Seats 1015
Men 870 85.71%
Women 145 14.29%
Total Board Seats 985
Men 822 83.45%
Women 163 16.55%
Total Corporate 2000 Governance Seats
Men 1692 84.60%
Women 308 15.40%
Figure 9: Corporate Governance Seats Held by Women, Texas Fortune 1000
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EXECUTIVE LEADERSHIP & BOARD MEMBERSHIP
Figures 10 and 11 below show the percentage of women in executive leadership and board membership, respectively. Women held less than 17% of board member seats across Fortune 1000 companies in Texas in 2018.
14.29%
Men Women
85.71%
Figure 10: Gender Diversity in Executive Leadership, Texas Fortune 1000
16.55%
Men
Women
83.45%
Figure 11: Gender Diversity in Board Membership, Texas Fortune 1000
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Gender Diversity by Race
Figures 12 and 13 below show the percentage of women in executive leadership and board membership broken down by race. Figure 14 suggests that white women hold over eight times the number of corporate governance seats held by Women of Color.
Figure 12: Gender Diversity in 1.08% Men Executive Leadership by Race, Women of Color Texas Fortune 1000 White Women
85.71% 14.29% 13.20%
Men Figure 13: Gender Diversity in Board Membership by Women of Color 2.23% Race, Texas Fortune 1000 White Women
83.45% 16.55% 14.31%
Figure 14: Gender Diversity Men 1.65% across Corporate Women of Color Governance by Race, Texas White Women Fortune 1000
13.75% 84.60% 15.40%
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CORPORATE GOVERNANCE DATA, 2016 – 2018
The first two tables below compare the number and percentage of executive and board seats held by women in 2016 and 2018. The last table aggregates these numbers to show the total corporate governing seats held by women across Texas’ Fortune 1000 companies. There is less than 1% increase in gender diversity in board membership.
Total Executive Seats 2016 2018
910 1015
Men 780 85.71% 870 85.71%
Women 130 14.29% 145 14.29%
Total Board Seats 2016 2018
752 985
Men 632 84.04% 822 83.45%
Women 120 15.96% 163 16.55%
Total Corporate 2016 2018 Governance Seats 1662 2000
Men 1412 84.96% 1692 84.60%
Women 250 15.04% 308 15.40%
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EXECUTIVE LEADERSHIP & BOARD MEMBERSHIP, 2016 – 2018
Figure 15 compares the gender diversity in executive leadership, suggesting no change. Figure 16 compares gender diversity in board membership from 2016 to 2018, which suggests no significant change.
100%
90% 85.71% 85.71%
80%
70%
60%
50% 2018 2016 40%
30%
20% 14.29% 14.29% 10%
0% Men Women
Figure 15: Executive Leadership Gender Diversity by Percentage, 2016 – 2018
100%
90% 83.45% 84.04% 80%
70%
60%
50% 2018
40% 2016
30%
20% 16.55% 15.96%
10%
0% Men Women
Figure 16: Board Membership Gender Diversity by Percentage, 2016 - 2018
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CORPORATE GOVERNANCE, 2016 – 2018
Figure 17 compares the total percentage of gender diversity across corporate governance in 2016 and 2018. The graphs suggest a slight decrease in the number of women in corporate governance.
90% 84.60% 84.96%
80%
70%
60%
50% 2018 40% 2016
30%
20% 15.40% 15.04%
10%
0% Men Women
Figure 17: Corporate Governance Gender Diversity by Percentage, 2016 – 2018
27
COUNTY DIVERSITY:
AN ANALYSIS OF DIVERSITY DEMOGRAPHICS IN CORPORATE GOVERNANCE IN HARRIS AND DALLAS/FORT WORTH
28
HARRIS COUNTY Executive Leadership & Board Membership Data
The tables below show the total number of executive and board seats held by each racial and gender group in 2018. The data shows a minimal difference in racial and gender diversity across board membership and executive leadership. Women of Color held less than 1% and 2% of executive and board seats, respectively. As will be shown in subsequent figures, only 30% of people who live in Harris County are non-Hispanic white persons.
Total Executive Seats 524
White Men 430 82.06%
White Women 63 12.02%
Men of Color 28 5.34%
Women of Color 3 0.57%
Total Board Seats 515
White Men 408 79.22%
White Women 64 12.43%
Men of Color 33 6.41%
Women of Color 10 1.94%
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Corporate Governance Data
In 2018, we accounted for a combined total of 1039 executive leader and board member positions. Of those positions, non-Hispanic white males held 80.65%, white women held 12.22%, and People of Color held 7.12%.
900 838 800
700
600
500
400
300
200 127 100 61 13 0 White Men White Women Men of Color Women of Color
Figure 18: Harris County Corporate Governance Positions Held
Total Corporate Governance 1039 Seats
White Men 838 80.65%
White Women 127 12.22%
Men of Color 61 5.87 %
Women of Color 13 1.25%
30
Racial Diversity
Figure 19 illustrates the Harris County population, which encompasses Houston, in terms of racial group, according to the U.S. Census estimates made in 2017. The Hispanic/Latino population shown is documented as non-white.
While 70% of Harris County is made up of People of Color, Figure 20 shows that 80.65% of corporate governance consists of non-Hispanic white men.
1.1% 7.2% White 30.4% 19.7% Hispanic/Latino
Black or African- American Asian
Native American 42.4%
Figure 19: Harris County Population Racial and Ethnic Diversity, Census Estimates 2017
5.87% 1.25%
12.22% White Men White Women Men of Color Women of Color
80.65%
Figure 20: Harris County Corporate Governance Racial Diversity
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Gender Diversity
Figure 21 shows the percentage of women living in Harris County in 2010 according to the U.S. Census. Figures 22 and 23 show the number of women in executive leadership and board membership, respectively.
Figure 21: Women in Harris County, Census 2010
Men 49.8% Women 50.2%
Figure 22: Harris County Gender 12.60% Diversity in Executive Leadership Men
Women
87.40%
Figure 23: Harris County Gender 14.37% Diversity in Board Membership Men Women
85.63%
32
DALLAS/FORT WORTH COUNTIES Executive Leadership & Board Membership Data
The tables below show the total number of executive and board seats held by each racial and gender group in 2018. The largest difference is with regards to Men of Color, who held twice as many board membership seats as executive leadership positions. People of Color combined held 11.85% of all board positions in 2018.
Total Executive Seats 369
White Men 294 79.67%
White Women 52 14.09%
Men of Color 17 4.61%
Women of Color 6 1.63%
Total Board Seats 371
White Men 263 70.89%
White Women 64 17.25%
Men of Color 33 8.89%
Women of Color 11 2.96%
33
Corporate Governance
Figure 24 and the table below show the racial diversity in the corporate governance of Fortune 1000 companies located in Dallas/Fort Worth Counties, Texas. In 2018, we accounted for a combined total of 740 executive leader and board member positions. People of Color held 9.06% of these positions, whereas non-Hispanic white men held 75.27%.
600 557
500
400
300 Series1
200 116 100 50 17 0 White Men White Women Men of Color Women of Color
Figure 24: Dallas/Fort Worth Counties Corporate Governance Positions Held
Total Corporate Governance 740 Seats
White Men 557 75.27%
White Women 116 15.68%
Men of Color 50 6.76%
Women of Color 17 2.30%
34
Racial Diversity
Figure 25 illustrates the population of Dallas County, according to U.S. Census estimates made in 2016. The Hispanic/Latino numbers shown have been documented as non-white. Figure 26 shows the racial diversity of corporate governance of Fortune 1000 companies in Dallas/Fort Worth Counties.
1.1%
6.3% White
29.8% Hispanic/Latino 23.5% Black or African- American Asian
Native American
39.9%
Figure 16: Dallas County Population Racial and Ethnic Diversity, Census Estimates 2016
2.30% 6.76%
15.68% White Men White Women Men of Color Women of Color
75.27%
Figure 17: Dallas/Fort Worth Counties Corporate Governance Racial Diversity
35
Gender Diversity
Figure 27 shows the percentage of women living in Dallas County in 2010, according the U.S. Census. Figures 28 and 29 shows the number of women in executive leadership and board membership in Dallas/Fort Worth, respectively.
Figure 27: Women in Dallas County, Census 2010
49.4% Men 50.6% Women
Figure 18: Dallas/Fort Worth 15.72% Counties Gender Diversity in Executive Leadership
Men Women
84.28%
Figure 29: Dallas/Fort Worth 20.22% Counties Gender Diversity in Board Membership
Men Women
79.78%
36
OIL AND GAS DIVERSITY:
AN ANALYSIS OF DIVERSITY DEMOGRAPHICS IN CORPORATE GOVERNANCE
37
OIL & GAS COMPANIES SURVEYED
Forty-eight of the 101 Fortune 1000 companies we surveyed are Oil & Gas companies in the State of Texas. Here we have included both Oil & Gas extraction as well as transportation companies. The companies are listed below.
1. Adams Resources 25. Halliburton 2. Anadarko 26. HollyFrontier 3. Andeavor 27. Kinder Morgan 4. Apache 28. Linn Energy 5. Atmos Energy 29. Marathon Oil 6. Baker Hughes 30. MRC Global 7. Buckeye Partners 31. National Oilwell Varco 8. Calpine 32. Noble Energy 9. Cameron International 33. NuStar 10. Center Point Energy 34. Oil States 11. ConocoPhillips 35. Oxy 12. Crestwood Equity Partners LP 36. Par Pacific Holdings 13. Denbury 37. Patterson UTI 14. Distribution NOW 38. Phillips 66 15. Dynegy 39. Pioneer Natural Resources 16. Enbridge 40. Plains GP Holding 17. Enlink Midstream 41. Quanta Services, Inc. 18. Enterprise Product Partners 42. Southwestern Energy 19. EOG Resources 43. Sunoco LP 20. EP Energy 44. Superior Energy Services 21. Exxon Mobil 45. Targa Resources 22. Flowserve 46. Transfer Energy 23. FMC Technologies 47. Valero Energy 24. Genesis Energy 48. Willbros
38
EXECUTIVE LEADERSHIP AND BOARD MEMBERSHIP DATA
The two tables below show the racial and gender diversity found within the executive leadership and board membership of Oil & Gas Fortune 1000 companies located in Texas. Non-Hispanic white males make up between 77% to 80% of Oil & Gas executives and board members, as they do across Texas’ Fortune 1000 companies generally.
Total Executive Seats 483
White Men 393 81.37%
White Women 64 13.25%
Men of Color 22 4.55 %
Women of Color 4 0.83%
Total Board Seats 473
White Men 372 78.65%
White Women 67 14.16%
Men of Color 25 5.29%
Women of Color 9 1.90%
39
CORPORATE GOVERNANCE DATA
In 2018, we accounted for a combined total of 956 positions within executive leadership and board membership of the Texas Fortune 1000 Oil & Gas companies.
900
800 765
700
600
500
400
300
200 131 100 47 13 0 White Men White Women Men of Color Women of Color
Figure 30: Oil & Gas Corporate Governance Positions Held
Total Corporate Governance 956 Seats
White Men 765 80.02%
White Women 131 13.70%
Men of Color 47 4.92%
Women of Color 13 1.36%
40
RACIAL DIVERSITY
Figure 31 shows the corporate governance racial diversity of Oil & Gas companies in 2018. Figure 32 shows the total workforce racial diversity of the Oil & Gas extraction industry in 2015, according to the EEOC. In the extraction industry, racial “minorities” constitute 10% of executive leadership, whereas in Texas Fortune 1000 Oil & Gas companies this number is 6.28%.
4.92% 1.36%
13.70%
White Men White Women Men of Color Women of Color
80.02%
Figure 31: Oil & Gas Corporate Governance Racial Diversity, Texas Fortune 1000
Executive & Senior Managers 10% Mid-Level Managers Professionals 20.22% Total
29.56%
31.73%
Figure 32: Racial Diversity in Oil & Gas Extraction Industry, Texas EEOC 2015
41
GENDER DIVERSITY
Figures 33 and 34 show the workforce gender diversity of the Oil & Gas extraction industry in 2015 and the executive leadership gender diversity of Fortune 1000 Oil & Gas companies. Figure 33 shows that women make up 70% of the total workforce according to the EEOC, whereas figure 34 shows that women make up only 15.06% of executive leadership.
30.45% Men
Women
70.54%
Figure 33: Gender in Oil & Gas Extraction Industry Workforce, Texas EEOC 2015
15.06%
Men Women
84.94%
Figure 34: Gender in Oil & Gas Corporate Governance, Texas Fortune 1000
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Figures 35 and 36 show the workforce gender diversity of the Oil & Gas extraction industry in 2015, according to the EEOC, and the executive leadership gender diversity of Fortune 1000 Oil & Gas companies. Executive leadership diversity is 1.01% higher in Fortune 1000 Oil & Gas companies than in the executive leadership of the Oil & Gas extraction industry.
13.07% Executive & Senior Managers Mid-Level Managers 21.60% Professionals Total 34.46%
70.54%
Figure 35: Women in Oil & Gas Extraction Industry, Texas EEOC 2015
14.08%
Men Women
85.92%
Figure 36: Gender Diversity in Oil & Gas Executive Leadership, Texas Fortune 1000
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Figure 37 shows board membership gender diversity of Fortune 1000 Oil & Gas companies, showing 2% more women than executive leadership (seen above). Figure 38 shows overall gender diversity across corporate governance of Oil & Gas companies broken down by race.
16.07%
Men Women
83.93%
Figure 37: Gender Diversity in Oil & Gas Board Membership, Texas Fortune 1000
1.36%
Men
Women of Color 84.94% 15.06% 13.70% White Women
Figure 38: Gender Diversity in Oil & Gas Corporate Governance by Race, Texas Fortune 1000
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KEY FINDINGS & CONCLUDING REMARKS
Workforce diversity enables Fortune 1000 companies to thrive, but corporate governance is still largely homogenous. This historical trend continues: from 2016 to 2018 the executive leadership and board membership of 101 of the most successful Texas companies has stayed the same. Below we reveal the key findings that emerged from this report and two areas for opportunity.
1) The Board of Directors is an opportune target to improve diversity in corporate governance. In contrast to executive leaders, board members can be selected for their expertise in community relations and for their independence. They can also be appointed at a faster pace. These factors, among others, allow diversity to be considered more easily. These changes are particularly welcome after the Securities and Exchange Commission adopted a ruling in 2010 requiring companies to consider diversity when nominating director candidates.
2) We need to change the conversation away from “male-dominated industries.” “Male dominated” implies that the workforce is largely homogenous. Yet, even in industries where leadership is mostly white and male, the rest of the workforce is not. As the Oil & Gas industry shows, there is a large gap between workforce diversity and leadership diversity, calling attention to the need for talent management and organizational culture change.
Hispanic/Latinos are The Oil & Gas the most under- Board of Directors are Industry is made up represented, making 5% more diverse than of 70% women, but up 1-2% of corporate Executive Leadership. only 13% are governance. executive leaders.
22% of the Dallas County Board of Non-Hispanic white Directors were women males make up 42.6% of From 2016 to 2018, — higher than the Texas population, there was no statistical national average and but almost 80% of all growth in corporate higher than Harris corporate governance governance diversity. positions. County.
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REFERENCES
United States Census Bureau (2017) “Population Estimates, July 1, 2016: Dallas, Texas; Houston, Texas.” Retrieved February 15, 2018. https://www.census.gov/quickfacts/fact/table/dallascountytexas,harriscountytexas/PST04521 6
United States Census Bureau (2017). “American Fact Sheet: Texas.” Retrieved February 15, 2018. https://www.census.gov/quickfacts/TX
United States Equal Employment Opportunity Commission (2015) “2015 EEO-1 Aggregate Report for State by NAICS-3 Code, Texas - Oil and Gas Extraction (211).” In 2015 Job Patterns for Minorities and Women in Private Industry (EEO-1). Retrieved, February 18, 2018. https://www1.eeoc.gov/eeoc/statistics/employment/jobpat- eeo1/2015/index.cfm#centercol
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