Racial diversity in the total workforce: slow progress
Recent company figures on the share of racial minorities in the total workforce tend to shine a positive light on racial diversity at the largest U.S. banks. After all, the share of racial minorities in the total workforce was on average 43 percent as of 2021. In addition, most banks have made progress in recent years: The share of white employees decreased, while the share of racial minorities increased in the total workforce, albeit slightly. At Bank of America, for instance, the share of racial minorities in the total workforce increased two percent between 2019 and 2021, while at PNC Financial Services, it increased almost five percent between 2020 and 2021. The share of racial minorities in the total workforce, however, does not paint an accurate picture of racial diversity at the largest U.S. banks.
Racial diversity in the leadership
Leadership positions at the leading U.S. banks are still predominantly filled by white employees. Even at Silicon Valley Bank, the one with the most diverse senior leadership, the share of racial minorities on senior level is below 40 percent. Racial minorities on the boards of directors are even less represented: At JPMorgan Chase, for instance, which is the largest U.S. bank in terms of total assets, 90 percent of the directors are white. This raises the question of how the share of racial minorities is so much higher in the total workforce? Just as with gender diversity at the largest U.S. banks, the answer is in the details: The relatively high share of racial minorities in the total workforce is mainly a result of the high share of racial minorities in lower-level corporate roles, such as administrative support or sales positions.
