By Heather Haddon
Mellody Hobson has seen corporate pledges to increase workplace
diversity come and go over the years. Starbucks Corp.'s new
chairwoman believes this time is different.
As co-CEO and president of minority-run, asset-management firm
Ariel Investments LLC, Ms. Hobson is one of the country's most
prominent Black investors. As of Wednesday, she will also be the
only Black chairwoman of an S&P 500 company, when she assumes
that role at Starbucks.
She's one of a handful of Black women to recently take on a
leadership position in the highest echelons of American
corporations, where Black female bosses are few and far between.
Another is Rosalind Brewer, a longtime friend of Ms. Hobson, who
left her role as Starbucks's operating chief and will become chief
executive officer of Walgreens Boots Alliance Inc. on Monday.
Ms. Hobson says roughly 20 other women of color in her orbit
have been elected to corporate boards recently. Companies face more
investor and regulatory pressure to diversify board rooms, and the
death of George Floyd in police custody, the killing of Breonna
Taylor and other prominent cases involving Black Americans and
police have pushed many to redouble efforts to help Black workers
advance. "I joke, we have to be headhunters in our spare time at
Ariel," she says.
Ms. Hobson, 51, rose from intern to the top of Chicago-based
Ariel, which manages roughly $13 billion in assets. She joined the
Starbucks board 16 years ago and counts former CEO and chairman
emeritus Howard Schultz as a friend and mentor. She recently spoke
by phone to The Wall Street Journal from the southern California
home she shares with her husband, filmmaker George Lucas.
WSJ: What are your goals as chairwoman?
Ms. Hobson: My job is to partner with [CEO] Kevin Johnson to
help the organization continue to scale to new heights. I'm the
band leader. I'm a person of color and that adds a fascinating
dimension to our story. I think that will be really powerful for
our people.
WSJ: What about for yourself?
Ms. Hobson: I have this friend who says being the first or only
Black anything is a proud and lonely walk. I'm ecstatic, but I
understand the importance of it. You have to do a good job so that
there will be more opportunities for others.
WSJ: Starbucks last year announced new management diversity
goals. Where does that stand?
Ms. Hobson: It's not time for any kind of victory lap, but I
know we have a plan. We're holding people accountable. I really
give Kevin a lot of credit for tying performance around diversity
to pay. That's where the rubber meets the road.
WSJ: What have been hurdles to making those advancements
before?
Ms. Hobson: We've had this conversation in our boardroom for
many, many years. Now, the work is very comprehensive and there's
complete alignment.
We have the worst problem -- where your good people get picked
off. We just had that with [Rosalind Brewer]. Of course I didn't
want to lose Roz at Starbucks, but the outcome is pretty great for
her and for Black women.
WSJ: Ariel has launched an investment arm to help fund
minority-owned service providers to companies. How diverse is
Starbucks's own supply chain?
Ms. Hobson: Business diversity includes all areas of corporate
spending. About 2% of Fortune 500 spending right now is with
minority business enterprises. Starbucks has been focusing on this
for some time. Last year, we spent more than $600 million with
diverse suppliers, about 8% of our spending.
WSJ: You've said we're in a "civil rights 3.0" phase in the U.S.
What signs of real change do you see?
Ms. Hobson: The broader society is keeping score. There are
consequences that exist for not living up to those commitments.
It's going to be super hard to be a Fortune 500 company without a
diverse person on your board.
WSJ: What grade would you give the U.S. in terms of board
diversity?
Ms. Hobson: B-minus. White men make up 30% of the U.S.
population and 70% of the board seats. The reason it's not in the
"C" category is because in the last year or so, there has been a
sea change. I know how many calls I've gotten and how many people
I've recommended.
WSJ: Starbucks has lost other top executives lately. What does
that mean for the executive bench?
Ms. Hobson: We've had people retire. Covid also had people
soul-searching about what they wanted to be. That said, I think the
executive leadership team is strong. That's reflected in the
success we've seen in the business, especially during a very
challenging time.
WSJ: Starbucks has made a commitment to get its U.S. baristas an
average pay of $15 an hour. What are your thoughts on the $15
minimum-wage debate, also in terms of shareholders' returns?
Ms. Hobson: Sometimes I think that the minimum-wage number has
oversimplified the problem. The living-wage math can be different
than the minimum-wage math, $15 an hour in San Francisco is
different than $15 an hour in Selma. At Starbucks, we always had a
belief that treating our partners very well ultimately drives our
business outcomes. Happier workers are workers who make for happier
customers.
WSJ: How has the pandemic impacted you?
Ms. Hobson: I told our team, I want to slingshot out of this
period. I don't want to limp out of it. We've done really good
work. And I'm a hard grader.
WSJ: Is there anything you're particularly looking to get back
to when pandemic restrictions lift?
Ms. Hobson: The solitude hasn't bothered me. People are really
surprised by that because they think of me as this extrovert. I'm
very happy in a room working alone, which no one would ever
expect.
WSJ: Your favorite coffee is just Starbucks black. Why?
Ms. Hobson: I didn't originally drink coffee. I drank tea. And
then when I had my child, I became obsessed with coffee. It never
stopped but I only liked it plain. The first thing I do when I wake
up, I work out. But I get my caffeine in me before I get on the
treadmill.
Write to Heather Haddon at heather.haddon@wsj.com
(END) Dow Jones Newswires
March 13, 2021 11:14 ET (16:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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