Summary presentation of primary and secondary findings and interviews with subject matter experts on the importance of diversity in the boardroom. With comparisons against Hispanics and Caucasians in the two-tournament system of corporate America. Further identifies the importance of mentors, specifically senior mentors, who help their protégées with obtaining stretch assignments and the opportunities for nominations into board of governance roles. However, with narrow specifications, it is the efforts of the Hispanic executive to work twice as hard, be a subject matter expert in his/her field of interest, and obtain the competencies required, and outlined in this study, to further their chances to be the future of C-Suite Hispanics.

1. Research Opportunity: The
Boardroom
Understanding the challenge of Diversity and the
pipeline for Hispanic Business Professionals
Presented by Ed Hernandez

2. My agenda.
 Introduce and explain the opportunity selected for study
 Project Importance
 Research Question
 Hypothesis and research objective
 Survey Results
 Conclusion
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3. Project Importance
 Limited research on the importance of diversity in the
board room and how Hispanics represent a significant
buyer power that lacks market reciprocity in Corporate
America, specifically the Fortune 1000 companies in the
United States.
 This study leverages previous research and updates the
current state of the Hispanic talent pipeline for board
governance roles that will help understand the reason
for diversity, the current status, and the gap that exists
in the pipeline as it compares to the total population.
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4. Hypothesis & Research Objective
 Ho: American Hispanics are proportionally represented in
Fortune 1000 Corporate Boards.
 H1: American Hispanics are not proportionally
represented in Fortune 1000 Corporate Boards.
 Research objective to understand the challenge and
opportunity for American Hispanics to be proportionally
represented on Fortune 1000 Corporate Governance
Boards in the United States.
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5. The business case for Hispanic
Diversity in the Boardroom
5 12/2/2011
Start/Finish: 2:59 – 4:25; 6:38 – 8:52; 9:37 – 11:06

6. Secondary Research
 Increasing Chances for Hispanic Selection and
Participation in the C-Suite
 Contributes to understanding of where Hispanics stand in
terms of their unique business knowledge, experience, and
skills, and to provide some initial guidance regarding how
Hispanics can increase their chances of being selected as
value-added members…board directorship positions
 “Who you know,” What you know,” and “What can you do
with knowledge:
 Board Competency Survey that identify items that could be
further developed for non-corporate board members
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7. Secondary Research (cont.)
 Increasing Chances for Hispanic Selection and
Participation in the C-Suite (Survey Results)
 Competencies for Board Governance:
 Portfolio of Significant experiences and accomplishments
 General leadership experience
 Relationship between business and economic environment
 Well honed area of expertise
 Areas of Opportunity for Hispanic Executives seeking Board
Positions:
 Financial & Statistical Literacy
 Knowledge of Organizations and Industries of Interest
 Market Knowledge and Marketing Acumen
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8. Secondary Research (cont.)
 A Leadership Repository for Board of Directors
 “Need to represent the marketplace that they server or
want to serve” – Steve Reinemund, Fortune 500 Corporate
Director
 Steps to strengthen the selection process for diversity:
 Narrow specifications for director searches;
 Modify the search process, and
 Take greater responsibility by individual directors to bring
Hispanic candidates
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9. Interview – Victor Arias, Sr.
 Senior Partner, Korn/Ferry Institute (Executive Search Firm)
 Economic environment slowing retirement of current
Directors on Fortune 1000 companies
 Corporate America only looking at CEOs/CFOs of public
companies; look beyond at Board of
Regents/Trustees, private companies, and non-profits to
widen the net of potential placements
 Minorities leave corporate America to start their own
business; not stay and reduces pipeline
 ½ of placements go the “Old Fashion Way”
 Mentors should have political power and/or influence the
organization and currently would lend to the status quo of
current directors (i.e. White versus Hispanic Mentors)
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10. 86% of the F1000 have zero Hispanic
representation on the Board
# of Companies with Hispanic Directors, by Count
Two, 11
One, 120
 Sample size = 935 of the F1000
 2009 revenues of these companies = $11.3
Trillion
 Total BOD seats at these companies = 9,800
 Seats held by Hispanic-Americans = 142
 Hispanic representation = 1.4%
 804 Companies (86%) have ZERO Hispanic
Directors
 120 Companies (13%) have ONE Hispanic Director
 11 Companies (1%) have TWO Hispanic Directors
 (Data excludes non-US Hispanics)
Zero, 804
Source: Fortune 2009, Board-Ex 2009, Korn/Ferry analysis

11. Interview – Carlos Orta
 CEO, Hispanic Association for Corporate Responsibility (HACR)
 Market reciprocity, 20-30 market/buyer share by Hispanics
 Varied assignments across the United States out of Miami, as a
Cuban-American was advised to leave Florida for value-add
opportunities that would create a competitive advantage in the
future by his mentor
 Board Leadership opportunities in public institutions like
City, County, and State Boards/Commissions (i.e. “Stamp of
Approval”)
 History of diversity led by African-Americans through Civil Rights
movement and now Hispanics are becoming what constitutes as a
minority
 Be the best, solid track record is essential for success
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12. Survey Results
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13. Survey Results
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14. Survey Results
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15. Survey Results
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16. Survey Results
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17. VP Mentor, is it Statistically
Significant at 95% Confidence Level?
 Do you have a senior executive (VP level or above) as a
mentor and/or corporate sponsor?
 Caucasian (p1) – Yes, 36.1% (CI @ 27.2 – 45.0%)
 Hispanic (p2) – Yes, 63.9% (CI @ 54.7 – 73.1%)
 Null Hypothesis: p1 = p2  Reject Null Hypothesis at p-
value of 0.00002 > 0.05
 Hypothesis, Comparing Two Populations, Two-Sided Test
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18. Survey Results - Competencies
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19. Survey Results - Competencies
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20. Conclusion
 There are significant opportunities for Diversity in the
Boardroom.
 This research identifies the board competencies
identified in secondary research and applies them to a
sample population
 Obtains an update on the representation of skills necessary
for Board appointments
 Interviews allow for context on the importance of mentors
 Identifies opportunities and awareness for individuals who
would like to serve on corporate boards
 Advocacy groups like HACR and Hispanic Directors will be
knocking on the doors of the Fortune 1000…but will there
be a pipeline to fill the opportunity?
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