| And: Black Power Finds its Niche on Wall Street, reports FORTUNE |
“Instead, among African Americans on the Street, it is those with quantitative expertise or unsexy niche specialties in finance and asset management who have posted the most significant gains.”
FORTUNE announced today its seventh annual list of Best Companies for Minorities. Topping the list for the second year in a row is McDonald's, which FORTUNE cites for having the highest minority-retention rate on the list and for making a concerted effort to purchase from minority vendors.
The list and related stories, including a report on how the new African-American power players on Wall Street are those with niche specialties, appear in the June 28 issue, available on newsstands June 21 and at www.fortune.com.
The good news, writes FORTUNE's Cora Daniels, is that "Corporate America is raising the bar, and the best keep on getting better." For example, during the seven-year life of the FORTUNE survey, company boards have become more diverse. People of color made up almost 21% of boardrooms in 2003, compared with 19% the year before and 11% in 2001.
Rounding out the top ten: At No. 2 for the second year in a row is Fannie Mae, with 15 minorities--including CEO Franklin Raines--among its 50 best-paid employees. Fannie Mae focuses less on race and more on developing effective leaders, say employees. Half of No. 3 Sempra Energy's workforce are minorities, and through a partnership with Howard University the company is guaranteed a steady influx of MBAs and engineers. No. 4 Union Bank added five minorities to its 50 top-paid last year, most of whom received the money the old-fashioned way: through commissions. Nearly half of No. 5 Denny's franchises are owned by minorities, while one-third of restaurant managers and one-fifth of executives are drawn from the dinner chain's minority ranks. Rounding out the top ten are the U.S. Postal Service (No. 6); Pepsico (No. 7); Southern California Edison (No. 8); Freddie Mac (No. 9); and PNM Resources (No. 10).
To compile the list, FORTUNE contacted the companies on the FORTUNE 1000 list as well as the 200 largest privately held companies. The rankings were derived from a model that weighs data-driven information such as the number of minorities in the workforce and on the board; the rate at which minority employees are hired (and fired); and management accountability for hiring, promotion, and retention. Reporters also talked to employees to gain perspective.
In a related story, "The New Black Power on Wall Street," Kimberly Allers explores how things have changed since FORTUNE identified a new crop of black power brokers on Wall Street seven years ago. "What we expected to be a climb to the upper reaches of the investment-banking world by these players has been more of a slow crawl, with some dashed hopes by the wayside," says Allers. "Instead, among African Americans on the Street, it is those with quantitative expertise or unsexy niche specialties in finance and asset management who have posted the most significant gains."
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