Time for a Jackie Robinson Moment in Banking

Pioneer Investor Shares Advice at Diversity Fireside Chat

Investment guru John W. Rogers Jr. participated in the Diversity Fireside Chat at the University of Maryland’s Robert H. Smith School of Business on Oct. 9, 2015.

Rogers said government agencies and other progressive organizations sometimes make an effort to hire diverse vendors, but these contractors tend to work in construction, food preparation, janitorial services and other primary and secondary sectors of the economy. “Today, that’s where we’re being pigeonholed,” said Rogers, described by Black Enterprise as one of the most powerful African Americans working in the tertiary economy that includes money managers, law firms and accountants.

Rogers said corporate boards and executive teams have actually become less diverse during his career in Chicago, where he launched Ariel Investments in 1983 after graduating from Princeton University. Since then he has grown the firm’s portfolio to $11 billion. “Major private equity firms have basically never had a Jackie Robinson moment,” he said.

During the fireside chat, moderated by Smith School diversity officer and clinical professor Henry C. Boyd III, Rogers laid out steps for organizations to close the gaps that persist. “These companies talk a great game,” he said. “But they’re not living the values they talk about.”

For starters, Rogers said companies should look around and ask questions about racial diversity when choosing vendors for professional services. “Make sure people of color are included in those transactions,” he said.

Second, when companies add diversity to their boards and executive teams, they must listen to these people. “Why can’t we participate in our capitalist democracy as full participants — not as the volunteer token when you need someone of color to fill a spot on the board?” Rogers asked.

He said his mother experienced this sentiment as the first African American woman to graduate from the University of Chicago Law School in 1946. Many organizations asked her to serve on commissions and boards, but few would hire her to do legal work for them. “She struggled to get people to take her seriously as a lawyer,” Rogers said.

For aspiring leaders of color, Rogers shared a three-step pathway to the boardroom or executive suite. First, these individuals must develop their professional skills and do well in business. Second, they must serve in their communities by joining nonprofit boards and helping with other local causes.

The third strategy is less obvious. “Get involved politically,” Rogers said. “Get involved early in a campaign. Show your teamwork skills, and show your ability to get things done for a candidate.”

He said the process helps rising stars make important connections. “You’re often rubbing shoulders with big-time CEOs if you’re in a Senate race or the mayor’s race or a presidential campaign, and often that leads to board seats,” Rogers said.