New research into the makeup of South Africa\u2019s Top 40 companies\u2019 executive teams is showing slow transformation at the highest levels.<\/p>\n
Findings from the 2015 Jack Hammer Executive Report\u201a the third annual report of its kind\u201a due for full release later this year\u201a show that there has been a decline in the number of black South African CEOs in the past three years \u2013 with little set to change in the foreseeable future.<\/p>\n
According to Debbie Goodman-Bhyat\u201a CEO of the executive recruitment company\u201a \u201cthe big picture suggests that executive transformation is set to remain peripheral for the next five to 10 years\u201d.<\/p>\n
She explained: \u201cUsing various data sets\u201a comparing\u201a analysing and extrapolating them\u201a we were able to construct a roadmap of the route to the top followed by our previous and current captains of industry. Then\u201a we investigated where the current crop of top black executives of SA\u2019s Top 40 companies found themselves at the moment\u201d.<\/p>\n
\u201cAnd what we saw was that\u201a although many find themselves in very senior positions\u201a only 10% of them were on the right track to the top\u201a in line with the roadmap.\u201d<\/p>\n
The 2015 Jack Hammer Executive Report study\u201a conducted by independent research firm Merchantec\u201a scrutinised the makeup and trajectory of the CEOs and executive teams of South Africa\u2019s Top 40 companies. The analysis was compared with data from the 2012 research results.<\/p>\n
The findings show that there has in fact been a decline in the number of black South African CEOs\u201a from 15% three years ago\u201a to 10% at the time of this year\u2019s research.<\/strong><\/p>\n It also showed that\u201a out of a total of 334 people constituting the executive teams in SA\u2019s Top 40 companies\u201a 21% were black South Africans.<\/p>\n \u201cWhile the immediate thought may be that transformation was at least happening in the executive space\u201a which could indicate that top leadership is set for a facelift in coming years\u201a there is another piece of information that shows up this interpretation as false\u201a\u201d says Goodman-Bhyat.<\/p>\n \u201cTo make a prediction for the future\u201a one must also look at the route the CEOs took to the top\u201a and compare that to where these senior black executives currently find themselves.\u201d<\/p>\n Historical data shows that almost all current Top 40 CEOs rose from core business roles. However in the executive teams\u201a only about half of the black South Africans were currently in business strategy\u201a operations or finance positions\u201a with the balance being in corporate services roles which are most unlikely to lead to a promotion to the top position.<\/p>\n \u201cIn other words\u201a there is a pool of only 36 black executives\u201a which forms 10% of the total number of executives\u201a within SA\u2019s Top 40 companies who are even in contention to make it to the top\u201a\u201d says Goodman-Bhyat.<\/p>\n \u201cThe implication of all of this is that\u201a at least for the next five to ten years\u201a we will continue to have peripheral transformation. Companies have certainly been attempting to deliver on their transformation agendas\u201a but the big picture is showing that much of this is taking place in non-core functions. In the long run\u201a the base of influence is therefore unlikely to change.<\/p>\n \u201cSimply put\u201a by continuing to appoint people into secondary\u201a non-business roles\u201a their ability to transform at the core\u201a and top\u201a is hampered.\u201d<\/p>\n A few companies – notably MTN and Vodacom \u2013 were however leading the way with more integrated diversity\u201a the Jack Hammer report said\u201a commenting: \u201cThe majority of their black executives occupy major operational and business roles\u201a and they have achieved more meaningful executive transformation than most of their peers\u201d.<\/p>\n Why it\u2019s hard to be black in South Africa<\/a><\/strong><\/p>\n Black middle class on the rise in South Africa<\/a><\/strong><\/p>\n White vs black unemployment in South Africa<\/a><\/strong><\/p>\nMore on transformation<\/h3>\n