Protesters and police officers meet for the second time in a row in New York City on July 1, 2020 after a budget vote. (Photo by David Dee Delgado / Getty Images)
David Dee Delgado | Getty Images
Global corporate accounting that began in the United States after George Floyd's murder has caused industries that have long been dominated by white men, such as the financial sector, to rethink diversity.
George Floyd was killed on May 25 by a Minneapolis policeman who knelt on Floyd's neck for 8 minutes and 46 seconds. Floyd was arrested on suspicion of using a fake $ 20 bill. His death sparked worldwide protests against racial injustice and inequality.
Wall Street has long been an industry dominated by white men. At Goldman Sachs, only 2.7 percent of managers, officers and managers are black. At Citi, 2 percent of executives and officers are black.
Closing the racial wealth gap
While companies and banks cannot single-handedly In order to resolve the systemic and historical racism that has existed in the United States since its inception, efforts are being made to give black Americans a better chance of economic equality.
In addition to the obvious benefit that closing the racist prosperity gap would bring to affected communities, a 2019 McKinsey report could weigh on the U.S. economy between $ 1.1 trillion and $ 1.5 trillion by 2028.
"Public and private companies need to focus on how to show your business purpose not only to your employees and customers, but in every society you work in," Larry Fink, CEO of BlackRock, told Hadley Gamble at a world government summit CNBC panel last week. He added that "targeted" companies will have better profitability in the long term.
BlackRock has promised 30 percent more black employees in the company by 2024. As CEO of the world's largest wealth manager, Fink monitors more than $ 6 trillion and hires 16,000 people worldwide, only 5 percent of whom are black. Adebayo Ogunlesi, chairman of Global Infrastructure Partners, told CNBC's Hadley Gamble that this was thanks to “pushing” CEOs like Fink, Business recognizes that it plays a leading role in society in areas such as economic and racial injustice.
Wall Street wakes up
Under pressure, banks have taken steps to do more to combat racism. Many CEOs released statements and talked about the murder of George Floyd. They recognized the deep divisions America faces when it races.
Jamie Dimon, CEO of JPMorgan, released a statement acknowledging the "reality" of police brutality.
Wells Fargo promised to double black leadership at the bank over the next 5 years. According to a memo, only 6 percent of executives at San Francisco-based bank are black.
Bank of America announced a four-year pledge of $ 1 billion in additional assistance to help local communities address the economic and racial inequality that Covid-19 accelerated.
The gender gap
Wall Street doesn't just struggle with racial diversity. Women are significantly underrepresented in the financial services industry.
Francesca McDonagh, CEO of the Bank of Ireland, told CNBC that the banking sector was "notoriously unrepresentative" for women.
"There are very few female CEOs of systemically important banks," she said. "When I look for opportunities to promote women, I always look hard and quickly, but there is a lack at the management level."