Power, Networks, and the CEO Pipeline

Political beliefs and power start and stay in upper-level management groups

Carpenter et al. (2004) notes that demography can predict an individual's thoughts and values. Research shows that CEOs' political views heavily influence where company PAC funds go (Chin et al., 2013). This raises a deeper question about whether a truly diverse CEO pool is even possible. Do CEOs share similar values because of who they are as individuals, or because certain demographic groups are consistently overrepresented in upper-level management?

Networks reinforce this dynamic. Networks serve as a protective mechanism for intellectual property (Gulati, 1998). They also play a strategic role in expanding firms through acquisitions (Hernandez & Shaver, 2019). Together, these readings point to a pattern of CEOs acting to accumulate and preserve power, shaping outcomes that align with their own interests rather than what may be best for the organization. The average CEO tenure is only 7.2 years (Howe, 2025). This helps explain why networks become essential for maintaining social and financial standing long after their role ends.

These findings carry concerning implications. While diverse top management teams tend to thrive in short-term and turbulent environments, they do not appear to be necessary for long-term stability (Carpenter, 2004). This suggests that diversity is too often treated as a temporary advantage rather than a long-term strategic priority. As a result, the demographics represented at the top remain stable and self-perpetuating.

The pipeline into these roles may also contribute to persistent underrepresentation. Roughly 98% of Fortune 500 CEOs hold a college degree (Shin, 2023). Yet college enrollment rates differ by ethnicity: only 36% of Black individuals and 33% of Hispanic individuals enroll in college, compared to 41% of white individuals and 61% of Asian individuals (National Center for Education Statistics, 2024). If the goal is greater representation in executive leadership, then breaking this cycle requires addressing the educational disparities that form its foundation.