Walgreens CEO Departure Sheds Light on Gender Diversity Challenges in S&P 500

The resignation of Rosalind Brewer as CEO of Walgreens Boots Alliance Inc. highlights the sluggish progress of diversity in America's business leadership, since it leaves the S&P 500 with no black female CEOs. This change went into effect last Thursday as a result of a mutual arrangement between Rosalind and the pharmacy chain.

Rosalind took over as CEO of Walgreens in March 2021, with the objective of converting the company into a healthcare provider. However, her efforts to grow into more profitable sections of the business were unsuccessful, resulting in a 50% loss in the company's stock value during her tenure.

Rosalind’s departure comes with heightened obstacles for corporations aiming to boost worker diversity, particularly in light of the US Supreme Court's decision on the use of race in college admissions.

The modest pace of diversity improvement in corporate employees, along with the time necessary to groom leaders to achieve top positions, means that another black woman may have to wait a long time before becoming CEO of an S&P 500 company.

Lizandra Vega, managing director at Gaia Human Capital Consultants, believes it could take five years or longer for the S&P 500 to see another black female CEO. New black directors at S&P 500 corporations accounted for 15% of newly appointed board members in 2022, down from 26% in 2022.

Rosalind will be replaced by Ginger Graham as temporary CEO, marking a significant milestone in female CEOs in the S&P 500. However, progress is slow and opportunity gaps are closing.