Citigroup unveils plan to reverse its declining diversity

Citigroup unveils plan to reverse its declining diversity
Top leaders at the firm will be measured on the progress of diversity goals on their scorecard, as they are with other business priorities.
AUG 22, 2018
After years of scant progress on diversity measures, Citigroup Inc. has created hard targets for raising the percentages of women and African Americans in management positions by 2021, according to an internal memo from Chief Executive Michael Corbat. Black employees in the U.S. will make up 8% of managers in roles from assistant vice president to managing directors within three years, up from 6% today. The bank also plans to boost the share of women in those management positions globally to 40% from 37%. (More: InvestmentNews Diversity & Inclusion initiative) Citigroup's top leaders will be measured on the progress of this diversity goal on their scorecard, as they are with the firm's other business priorities, according to Mr. Corbat's memo. Among those leaders to be held accountable will be the bank's 18-person operating committee, which currently includes three women and no African Americans. "To be a healthy, high-performing organization, we need a well-balanced team that is representative of the places where we operate, in every part of the world," Mr. Corbat wrote in the memo, which was sent to employees last Thursday. "It's simply smart business." In 2009, black employees made up about one in six employees at Citigroup. African-American workers are now down to about one in 10 workers at the firm, according to 2017 figures. (More: Why a lack of diversity among financial planners persists) At the highest levels, representation is even lower. Black workers at the executive and senior manager level ticked up to 1.8% in 2017, after having fallen from 2012 to 2016, according to data compiled by Bloomberg. Sara Wechter, Citigroup's head of human resources and one of three women on the operating committee, said it was important to make these diversity targets around black employees because the decline in black bankers was "fundamentally a problem," she said. "We know it and we're trying to be transparent." Citigroup isn't the only bank struggling with this issue. Black diversity has been falling at big U.S. banks in recent years. The percentage of women in executive and senior management typically hovers around 30%. In addition to setting public goals and holding senior leaders accountable for meeting them, the bank is expanding its in-person unconscious bias workshops — designed to expose workers to deeply ingrained stereotypes they might not even know they hold. More than 80% of Citigroup employees have already participated in the existing online training. (More: Race is hard to talk about at work — here's how to make it easier) "We know that the results we want to see will not come overnight," the memo read. "These initial goals will ensure we quickly learn which new efforts are working and which, frankly, aren't."

Latest News

Musk’s SpaceX gift puts Trump Accounts’ stock rules to the test
Musk’s SpaceX gift puts Trump Accounts’ stock rules to the test

Donated SpaceX stock generally can’t be refused or sold for years, leaving advisors to explain concentration risk to families

US retirement system scores C+ as aging crisis reshapes global pension outlook
US retirement system scores C+ as aging crisis reshapes global pension outlook

Aging populations and underfunded systems are forcing wealth managers to rethink how they prepare clients for retirement.

401(k) plans now rival healthcare as workers' most valued benefit
401(k) plans now rival healthcare as workers' most valued benefit

A new Morgan Stanley survey signals a fundamental shift in how employees view retirement benefits - and raises the stakes for plan advisors.

California billionaire tax may shrink state revenue, Stanford finds
California billionaire tax may shrink state revenue, Stanford finds

Proposition 40 wealth tax could raise $30 billion, not $100 billion, as departures erode the base and voters remain split.

Jump, Zocks double down on AI meeting leadership with new partnerships
Jump, Zocks double down on AI meeting leadership with new partnerships

Jump is piping FMG marketing content into post-meeting workflows as Zocks opens its platform to more than 32,000 LPL financial advisors.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor