Buenas Noches! Good evening and welcome to the Hispanic Association on Corporate Responsibility 2004 Symposium FORTUNE Directors Dinner.
I am very pleased that you can join us this evening to honor an outstanding group of leaders who really are an inspiration to us all.
I have to share with you that I've been looking forward to this moment ever since I joined HACR. In many regards, our mission of Hispanic Inclusion is in fact reflected IN A BIG WAY within the corporate boardroom.
The leaders we honor tonight are clearly a vital element to the advancement and inclusion of our community in US society. And by the way-for those of us who claim shareholder status in the companies they represent, we thank tonight's honorees for protecting our investments and for understanding that Hispanic inclusion is a very real and important shareholder issue.
I would submit to you-that as our community unites its interests-that full Hispanic representation in the corporate boardroom must be a priority. The boardroom is the epicenter of business leadership and widely recognized as the most effective agents of corporate change.
Tonight we celebrate SEVEN FORTUNE directors, high achievers each and every one. And when the history books are written that chronicle key areas of corporate evolution-these seven individuals will most certainly be identified as "pioneers".
In fact our special honoree tonight should have a chapter dedicated all to himself. Mr. Herman Gallegos has been a board member for 30 years and probably has a whole lot to say about this topic.
Yet, on a very personal note, let me share something with you that my mother was very fond of saying to me: "Mijo, no eres monedita de oro".
Her message to me was that not everyone was always going to like me as they might a shiny gold coin…but listen folks, these SEVEN FORTUNE directors…they most definitely are "moeditas de oro" in my book!
And I'll tell you this, for these history books to accurately depict the pioneering efforts of our FORTUNE directors - they will be obligated to identify 2 very distinct stories unfolding in today's corporate boardroom and the role of Hispanic directors.
First, let me share the raw numbers with you.
…Today, we have 148 Hispanic directors…And 166 companies reflecting Hispanic representation in their boardroom.
…These 148 individuals collectively hold 202 of the board seats in FORTUNE 1000 companies-meaning some individuals hold multiple seats at multiple companies.
When you break this population down even further, you begin to see the 2 very distinct conditions unfolding in our corporate boardrooms:
Since 1993, we see 186% more companies claiming at least one Hispanic as a member of their board. And an 87% increase in board seats held by Hispanics overall. Many more companies-many more board seats. A fantastic growth rate…
But before we claim victory, we should know that over the last 5 years, the growth rate of Hispanic representation in corporate boardrooms has decreased by 60 percent from a growth rate of 13 percent per year to only 5 percent per year. At this current pace, it would take a full 30 years to welcome a Hispanic in each and every FORTUNE 1000 boardroom.
The traditional pipelines to directorship are not very promising either as only 1 percent of all CEO's and Executive Officers are Hispanic.
And unfortunately, 83 percent of FORTUNE 1000 companies do not have any Hispanic representation on their board, which means that only 1.9 percent of all board seats are held by Hispanics and only .3 percent held by Hispanic women.
Now, if we analyze where our 148 Hispanic directors reside, we are encouraged to know that the concentration of talent increases at the high end of FORTUNE companies as measured by sales.
- Specifically, 39 of the top 100 FORTUNE companies have selected Hispanics to influence their future from the boardroom.
More importantly, total stock returns of companies with Hispanic board representation grew by more than 17 percent compared to a 4-½ percent return for the DJIA and negative returns for the S&P and NASDAQ over the last 5 years.
SO IT WOULD APPEAR TO ME THAT OUR PRECIOUS FEW ARE IN FACT "MONEDITAS DE ORO"
Ladies and gentlemen, it has been said that 'LIFE IS JUST LIKE A PLAY…YOU CAN BE IN THE AUDIENCE OR YOU CAN BE ON STAGE-ITS YOUR CALL"
Our organization, HACR and our coalition members choose to actively participate in the play.
HACR will continue to;
1. Provide leadership and in-depth research to the issue of boardroom demographics.
2. We will educate corporations, we will educate the media, and we will educate the board nominating committees to draw their attention to this opportunity.
3. We will continue to hold high-end educational seminars with the Harvard Business School to train current and future board directors.
4. We will continue to evolve our data base of director candidates and partner with search firms and other organizations to accelerate the placement of qualified candidates
5. And we will dedicate our symposiums going forward to this issue-to create a meaningful forum for dialogue and action.
Our Symposium this year: The Power of Hispanic Inclusion was developed with the purpose of highlighting Hispanic directorship and corporate responsibility. And I think we've succeeded in that purpose.
For those of you who attended our business session entitled Corporate Governance: Insights for Board Preparation, our 5 speakers
- Mario Baeza of The Baeza Group,
- Gil Casellas of Casellas & Associates,
- Ted Dysart of Heidrick & Struggles,
- Bob Halpering of Harvard Business School
- And Pablo Schneider
All shared their experience as directors, researches, and practitioners and provided insights into maintaining professional standards once a director. The panelists also reviewed the important issue of Hispanic representation on corporate boards.
In fact, this specific business session was a pre-curser to our August HACR/Harvard Business School partnership on corporate governance. For the second year in a row, both organizations have partnered to deliver a comprehensive, state-of-the-art executive education series focusing on this issue.
We would love to see many of you here tonight-experience this important educational opportunity. And during the following weeks, we ask that you visit our Web site at www.hacr.org to learn more about this program and submit your application.
Now, before beginning dinner, I very much wish to thank our corporate sponsors who in fact have enabled the platform to address all of the important topics covered during our 12th annual symposium.
- Altria Group is this year's Diamond Sponsor.
- Our Platinum sponsors are Cendant Corporation, DaimlerChrysler, Ford, and General Motors
- IBM and Wal-Mart are our Gold Sponsors
- Our Silver sponsors are Anheuser-Busch, Fannie Mae, Guzman & Company, McDonald's, Time Warner, and Univision
- SBC Communications and Sterling Financial Investment Group are Bronze Sponsors
- This year's presenting sponsors are BellSouth, Herrera-Cristina Group, MGM MIRAGE, Scholastic, and Southwest Airlines.
Please join me in thanking all of our sponsors
After dinner, we will honor seven outstanding directors and present a richly deserved lifetime achievement award. But lets enjoy dinner first. Buen Provecho. Thank you.
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ALFONSO
Wasn't dinner great! Isn't this beautiful hotel great! Isn't this city great! I hope you're enjoying your stay here. The most important moment of the evening has arrived. But before I continue, I want to introduce my friend, Dr. Antonio Flores, chairman of the board of HACR and president and CEO of the Hispanic Association of Colleges and Universities.
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Thank you Alfonso. And on behalf of the board of directors, welcome to the 12th annual Hispanic Association on Corporate Responsibility Symposium: The Power of Hispanic Inclusion. I am very happy to be here and joining Alfonso in honoring our guests. First, I want to introduce the rest of the HACR board members:
- Juan Galan of the Cuban American National Council
- Irma Flores Gonzales of the National Council of La Raza
- Hector Flores of the League of United Latin American Citizens
- Hernán Guaracao of the National Association of Hispanic Publications
- Manuel Mirabal of the National Puerto Rican Coalition
- Raul Araujo, MENToR
- Alma Morales Riojas of MANA, A National Latina Organization
- Ronald Blackburn-Moreno of ASPIRA Association
- David Rodriguez of the American GI Forum of the United States
- Ingrid Duran of the CHCI (who unfortunately could not be with us tonight)
This is a dedicated and committed group of Hispanic leaders who are 100 percent behind HACR. I feel honored to be in the company of such fine individuals. Thank you. Alfonso.
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Thank you Antonio. Now, lets introduce our FORTUNE Board Honorees. As Antonio and I call your name, please join us in the podium.
The first time I met Mr. Louis Caldera, I was in awe of his many achievements and in fact he has gone on to lead in many more impressive ways. Louis Caldera serves on the board of directors of Belo Corporation, Indy Mac Bancorp, and Southwest Airlines.
Currently, Louis is president of the University of New Mexico.
Before his current appointment as the chief Lobo at UNM, Louis Caldera was vice chancellor for university advancement at The California State University.
Mr. Caldera was also Secretary of the Army in the Clinton Administration from July 1998 until January 2001.
He previously served as managing director and chief operating officer for the Corporation for National and Community Service, which supports the very popular volunteer service programs AmeriCorps, the National Senior Service Corps, and Learn and Serve America.
Caldera also served the California Legislature in three straight terms, from 1992 to 1997, representing the 46th Assembly District in Los Angeles. Previously, Caldera was attorney at the law firm O'Melveny and Myers. He is a current member of the Council of Foreign Relations and has received the Department of Defense's Distinguished Civilian Award.
Ladies and gentlemen, Louis Caldera.
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Nelson Diaz is a partner at the Blank Rome LLP. Previously, Diaz was city solicitor of the City of Philadelphia, and served as general counsel in the U.S. Department of Housing and Urban Development appointed by then President Clinton. Among the many accomplishments and honors, Diaz was a founding member of the National Puerto Rican Coalition, served as secretary of ASPIRA of America, and was a White House Fellow as special assistant to the Vice President of the United States of America. Diaz sits on the boards of trustees of Temple University, is part of the executive committee of Pam American Association, and the board of directors of the Historical Commission. Diaz also serves on the Pennsylvania Supreme Court's Committee on Racial and Gender Bias. Among the many awards, Diaz is a recipient of the National Bar Association Raymond Pace Alexander Judicial Council Award; the Salvation Army William Booth Award for Civil Rights Achievement; the HUD Excellence Award, Civil Rights Award and Community Development Award; and American Bar Association Spirit of Excellence Award, among others. Diaz serves on the board of Exelon Corporation. Ladies and gentlemen, Nelson Diaz.
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I had the pleasure of meeting our next honoree, Patricia Diaz Dennis, during last year's inaugural HACR/HBS executive education program. Patricia is a true pioneer in the work of HACR and the corporate boardroom.
She is a champion for the Hispanic community and is a huge advocate for Latina issues. Patricia currently serves on the boards of the Girl Scouts of the U.S.A., The Tomas Rivera Policy Institute, and is a member of the board of regents of the Texas State University System.
She serves on three corporate boards including Massachusetts Mutual Life Insurance Company, UST and Entravision Communications.
In her spare time, Patricia is the senior vice president, general counsel and secretary for SBC-West, a subsidiary of SBC Communications.
Previously, she was assistant secretary of the U.S. Department of State for Human Rights and Humanitarian Affairs, served as a commissioner at the Federal Communications Commission, and was appointed by President Regan as a member of the National Labor Relations Board. Ladies and gentlemen, please help me welcome, Patricia Diaz Dennis.
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George Herrera is the founder, president and CEO of the Herrera-Cristina Group, a multidisciplinary management firm, specializing in marketing, communications, corporate diversity, public affairs, event planning, and research. Previously, George was president and CEO of the United States Hispanic Chamber of Commerce. He joined the board of Cendant Corporation just a few months ago and the stock is at a near all-time high!
At the chamber, he was primarily responsible for communicating the interest of 1.6 million Hispanic-owned businesses across the country to both the private and public sectors, and addressing critical economic issues that impact Hispanic entrepreneurs. He is the creator of the syndicated television show, "Hispanics Today," which is seen on the three major television networks and viewed by more than 30 million people. George was inducted as a fellow to the Wharton Society of Fellows at the Wharton School in the University of Pennsylvania; is a member of the Secretary's Committee on 21st Century Workforce, and President's Council on the 21st Century Workforce; chair of the Corporate America Task Force advisory committee of the U.S. Hispanic Congressional Caucus. Ladies and Gentlemen, George Herrera.
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I would love to say that our next honoree is my sister, or even my cousin, or that we are somehow related, but for now I am happy referring to her as a friend and another pioneer who deserves our admiration.
Vilma Martinez serves on THREE FORTUNE 500 boards including Anheuser-Busch Companies, Fluor Corporation, and Burlington Northern Santa Fe Corporation, as well as on the boards of the Bank of the West, Shell Petroleum.
She is also a partner in the law firm of Munger, Tolles & Olsen where she has practiced since 1982.
Previously, Vilma served as president and general counsel of the Mexican American Legal Defense and Educational Fund. At MALDEF, she led the organization's efforts to foster sound public policy, laws and programs to safeguard the civil rights of Latinos throughout the US. Early in her career, she served as an attorney with the NAACP Legal Defense Fund.
Vilma has received numerous prestigious awards including
1. The American Bar Association's Margaret Brent Award,
2. Columbia Law School's Medal for Excellence,
3. University of Texas' Distinguished Alumnus Award for Extraordinary Achievement,
She has been a member of the Council on Foreign Relations, the U.S. Hispanic Mexican Government International Commission, the Presidential Advisory Board on Ambassadorial Appointments and the California Federal Judicial Selection Committee. Ladies and Gentlemen, Vilma Martinez.
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Now, I have the distinct honor to introduce our special FORTUNE Board Honoree. Dr. Herman Gallegos. This year, Mr. Gallegos is retiring from serving on the board of SBC Communications where he served for 3 decades. He first joined Pacific Telephone and Telegraph in 1974 (then owned primarily by Ma Bell). That same year, this trailblazer joined the board of the Rosenberg Foundation. So… he is one of the first Latinos to join a corporate board and one of the first to join a major foundation board.
Herman is currently an independent management consultant, but he started his career as a community activist. His background in community development led him to be the 1st executive director of the Southwest Council - the predecessor to the National Council of La Raza - an HACR Coalition member. In addition to his role athe the Southwest Council, he was vice chairman of the Independent Sector, and played an integral role in securing funding to help create and support countless other Hispanic organizations. Throughout his many different professional roles, Herman has always found time for the community. He has earned a great deal of respect and recognition from his peers over the past several decades because he has used his position of influence to help empower the community.
He was director of the Gallegos Institutional Investors Corporation. Herman served as an alternate U.S. Public Delegate to the 49th United Nations General Assembly. Gallegos has also served on the boards of the Student Loan Marketing Association (Sallie Mae), TransMetrics, UnionBalCal Corporation and its subsidiary Union Bank of California. In 1996, Gallegos received the prestigious Ohtli Medal from Mexico's Department of Foreign Relations. Ladies and gentlemen, please help me welcome our special guest honoree for lifetime service, Herman Gallegos.
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It has been said that there are 3 kinds of people in this world…
- Those that watch things happen
- Those that make things happen
- And those that say…Hey, what just happened????
Well, it is clear to me that Henry Cisneros has been making big things happen not only in the Hispanic community but on the stage of social justice and economic empowerment for a long time.
It is also clear to many of us that that Henry Cisneros has not labeled his success as a "reward" but rather as a tool that must be applied in bigger and better ways.
Henry Cisneros is chairman and chief executive officer of American CityVista, a joint venture to build homes in many of the nation's metropolitan areas.
As former Secretary of the Department of Housing and Urban Development, Henry along with Kaufman and Broad made a commitment to build large-scale distinctive communities in areas where new residential development has not occurred in recent years.
American City Vista provides new residential options for buyers of all backgrounds and incomes. Something he was very familiar with as HUD's Secretary.
Cisneros began his career in public service working as an administrative assistant in the San Antonio City Manager's office.
In 1971, he was selected as a White House Fellow and worked as an assistant to the Secretary of Health, Education and Welfare Elliot Richardson.
In 1975, Cisneros was elected to the San Antonio City Council and in 1981; Cisneros became the first Hispanic mayor of a major U.S. city when he was elected Mayor of San Antonio, the nation's 10th largest city.
Cisneros served as a board member of the Rockefeller Foundation, chairman of the National Civic League and chairman of the Advisory Committee on the Construction of San Antonio Alamodome.
Henry Cisneros was also president and CEO of Univision Communications.
He serves on the board of trustees of the Enterprise Foundation and is vice chairman of the New America Alliance.
Countrywide Financial Corporation enjoys Henry's many talents as a member of their board of directors.
Ladies and gentlemen please help me welcome the man who once said that "90% of this game is half ganas"!
Henry Cisneros
ALFONSO
Ladies and gentlemen, on behalf of HACR board of directors and staff, thank you for joining us tonight. This has been a memorable event and I look forward for you join us next year in Los Angeles. Before we leave, I would like to ask all of our FORTUNE Board Honorees to stand up, thank you.
Thank you and good night.
For more information, please contact:
Omar Velarde-Wong
Director of Communications
Phone: 202.835.9672
Fax: 202.457.0455
ovelarde@hacr.org
