‘All aspects of American life rely on Hispanic participation’: U.S. Hispanic Business Council CEO

Javier Palomarez, President and CEO of the U.S. Hispanic Business Council, joins Yahoo Finance to discuss Hispanic and Latino representation in Corporate America, and the U.S. Hispanic Business Council’s efforts to bring a voice to the Hispanic business community.

Video transcript

ALEXIS CHRISTOPHOROUS: As part of our ongoing coverage of Hispanic Heritage Month, we're shining a spotlight on the representation of the Hispanic community at Fortune 500 companies. Joining me now is Javier Palomarez, president and CEO of the US Hispanic Business Council. So Javier, I was looking over some statistics, and they're pretty sobering and a little shocking. Just 2% of CEOs in Fortune 500 companies are Hispanic. Tell me why you think that is. And also, what are the numbers like in other c-suite positions and on company boards?

JAVIER PALOMAREZ: It is kind of sobering when you look at it, Alexis. Only 3% of individuals in the c-suite are of Hispanic descent, and yet Hispanics make up almost 20% of the workforce in corporate America. Our association, the United States Hispanic Business Council, is about calling attention to that and pointing out to corporate America that their boardroom, their c-suite needs to be more reflective of the reality of the American public. And when you look at the American public, the overall Hispanic population, Hispanics are the fastest growing segment of the overall US population. There are some 62 million Hispanics in America as we speak. And we make up about 20% of the overall population.

And in fact, according to the latest census data, it indicated that more than 52% of the overall growth of the American population came from the Hispanic community. So we are certainly present in terms of the consumer, the client, the customer, but we're not present when it comes to the c-suite, and certainly not when it comes to the boardroom.

ALEXIS CHRISTOPHOROUS: And I want to talk more about that, because when you look at the numbers, Javier, Hispanic workers are a big part of the economic engine that keeps America humming. I saw that Hispanics have the highest employment rate-- I didn't realize this-- among American men aged 16 to 60. So there's a work ethic there. Tell us why you think that's not translating to the upper echelon of business and to the c-suite.

JAVIER PALOMAREZ: I think there's a blind spot there. I think that when corporate America thinks about diversity, they think in black and white. When they think about inclusion, they think in black and white. And that's a good thing. I think African-Americans have done an admirable job of letting their presence be known and demanding, appropriately so, that corporate America change and be more reflective of their community.

It's now time for Hispanics to speak with one voice, in a collaborative fashion, in a way that we can help educate corporations and say, hey, listen, we make up a good portion of your client base and your customer base. It's appropriate that we show up in your boardroom, we show up in the c-suite. There is definitely a blind. spot. But that's part of the challenge and one that we are happy to take on and collaborate with corporate leaders and talk about the potential that exists within my community.

You talked about the employment rate amongst males, adult males in this country. The most employed adult male in America is Hispanic. The employment rate for Hispanic adult males is 80%. For white males, it's 70%. And for African-American males, it's 65%. So clearly, we're contributing. We will make up about 80% of the new entrants into the workforce over the next decade. And so it's appropriate that we work with corporate America to ensure that the doors of the c-suite are being opened to us and that the boardroom is being made available for all the Hispanic talent that is out there ready and willing to participate, collaborate, and help grow the economy.

ALEXIS CHRISTOPHOROUS: So you're with the US Hispanic Business Council. Tell me some ways that you are trying to strengthen the bond between your members and those in the business community and to gain them the access they need. Because that's really part of the equation, is it not, Javier, is a lot of these folks don't even have the access to begin to climb the ladder?

JAVIER PALOMAREZ: You hit the nail right on the head. You know, the reality of it is that all aspects of American life rely on Hispanic participation, whether that's entertainment or politics or commerce. Our workforce, our purchasing power, our viewership, our votes are necessary and coveted. It is appropriate now that we as a community come together and begin to demand the change that's necessary that I think is good, frankly, for corporate America.

And that means that our association may have to engage in issues that may be controversial at times, that may be political in nature, that may raise the proverbial eyebrow from time to time. But our argument is one that's based on facts and data. The numbers are all good. This is a good news story. This is about a community that continues to contribute, to give back to this nation, to serve this nation. It's only appropriate that we be given an opportunity to participate at the highest levels in corporate America, and frankly, everywhere else.

As I mentioned earlier, our entrepreneurial community is hard at work. We are starting ventures at a rate of three to one when compared to the general market. And right now, there are more than 4.4 million Hispanic-owned firms in this country that collectively contribute over $750 billion to the American economy. And I always say that while we are proud to advocate on behalf of men and women who happen to be of Hispanic descent, we never forget that we are first and foremost American businesses.

So every tax bill we pay, every product we manufacture, every service we provide goes to benefit the American economy. It's only fair and right now that we come together as a community and demand the change that we frankly think is good for the American economy, and certainly for corporate America.

ALEXIS CHRISTOPHOROUS: All right. Javier Palomarez, president and CEO of the US Hispanic Business Council, we appreciate your time today. . Thank you.