Mellody Hobson has been reflecting a lot lately: “I’ve been trying to figure out how these pieces all come together, and thinking a lot about how I grew up.” Raised on Chicago’s South Side as the youngest of six children, her strong family support network provided a safe base amidst less stable circumstances outside.
Reflecting on her upbringing in 1970s, inner-city Chicago, she credits her mother, Dorothy Ashley, for imparting the fundamental principles that would inform her future ascent. “I always say she was brutally pragmatic. Not in a mean way, she was just extremely direct. There was no sugarcoating at all,” Hobson recalled. “She prepared me for the world that I was going to live in.” In communities where adversity can just as easily mold resilience as thwart ambition, such pragmatism is critical.
Today, Hobson is an iconic businesswoman. As president and co-CEO of Ariel Investments, she oversees about $14 billion in assets for the first African American-owned investment firms in the US. Her leadership has guided the company through decades of economic change, and paved the way for a new generation of diverse investors and entrepreneurs. As the chairwoman of the board of directors at Starbucks Corporation, Hobson provides high-level strategic oversight for one of the most successful, profitable, and recognizable brands in the world.
Any Black woman who has navigated corporate spaces can read between the lines of her trajectory and discern the tenacity it’s taken to arrive where she has. Her mother’s sensibility gave Hobson the fortitude to confront the inevitable prejudice, sexism, and racism she’d face with practical resolve. She recalls a defining moment that drove the message home: “As a little kid, I didn’t like my first-grade teacher. I remember I had a really hard time. I would say I was sick every day. Finally, I told my mother, ‘I think she doesn’t like me because I’m Black,’ and my mother looked at me—I was six years old—and said, ‘I never want to hear that from you again, ever.’”
She would internalize the message to recognize the biases meant to denigrate her without allowing them to weaken her resolve. “As much as she sensitized me, she was not going to let me hang anything on some racial inequity as a reason that I did not succeed,” Hobson told ESSENCE. These days, she wields enormous power, which she uses to knock down some of the structural obstacles she has surmounted. Her commitment to philanthropy and increased board diversity reflects that resolve.
I had the privilege of speaking with the esteemed business leader at the 2024 BLACK ENTERPRISE Women of Power Summit, where she was recognized alongside prominent figures like Thasunda Duckett, CEO of TIAA, and Judy Smith, Founder and President of Smith & Company. She discussed strategies for improving board diversity as well as how character development from early adversity, when properly channeled, can result in a strategic competitive edge.
A Strategic Competitive Edge
Resilience is a competitive advantage in the business world where adversity and innovation often intertwine. The ability to negotiate and overcome obstacles early in life can be a significant motivator and competitive edge later on. “There is a sense of struggle and sometimes deprivation that leads you to push yourself very hard because you want to have a better life. It’s that basic,” Hobson explained.
The desire for stability was a strong catalyst for her success: “I wanted it more for security—both financially and just a feeling of being safe. Not safe, like I was going to come to harm, but safe in terms of having a place to live, and that I could count on certain things, which—when I was a child—wasn’t always true.” However, where options for meeting basic needs are few, not everyone achieves this outcome. Some are driven to think beyond ethical boundaries to attain their desired goals. It’s an unfortunate, nuanced, and deeply personal reality for Hobson, fueling her determination to address structural disparities and create pathways for advancement.
In the mid-1990s, she co-founded Ariel Community Academy on Chicago’s South Side, integrating financial literacy into its curriculum and providing high-quality education. She serves on the board of directors for her husband‘s nonprofit, the George Lucas Education Foundation, which leads K-12 educational transformation in the U.S. As chairman of After School Matters, she supports out-of-school programs for Chicago teens, deeply impacting youth development. Additionally, she contributes to The Chicago Public Education Fund, investing in educational leaders who foster cultures of equity and excellence.
Often, it comes down to exposure, opportunity, and a nudge in the right direction. “Philanthropy isn’t just about writing checks. It’s about creating lasting change and empowering underserved communities,” Hobson emphasized.
Advancing Diversity in Boardrooms
Executive boards have significant influence over economic outcomes. Representation is pivotal for advancing economic empowerment within Black communities. “After George Floyd, there was a significant push to add Black board members, both women and men,” Hobson shared. “The pool expanded as a result.” She has been an architect, influential in creating this meaningful change.
Ariel Investments, under Hobson’s leadership, was advocating board diversity before it was a trend. In 2002, the asset management firm launched the Black Corporate Directors Conference, rallying Black and Latino corporate directors from Fortune 500 companies around increased diversity representation, inclusive procurement practices, and strategic philanthropy within corporations.
Hobson, who sits on several boards, supports a multifaceted strategy for diversity. For aspiring professionals looking for board seats, reputation and networking are key. Her partnership with former Senator Bill Bradley, for example, resulted in an introduction to Howard Schultz, former CEO of Starbucks Corporation. “While at Ariel, Bill introduced me to Howard. “I’m on the board of Starbucks as a result of that introduction,” Hobson explained.
Neither the introduction nor the board nomination happens without years of demonstrated work ethic creating her irrefutable reputation. Bill shared with her an insight that validated this concept: “He said, ‘you’ve been exceptional. So many people have been watching you this whole time.’”
Having had several doors opened due to unsolicited word-of-mouth, Hobson stresses the importance of building a strong reputation: “It goes back to my mother’s wisdom. She would say, ‘be the labor great or small, do it well or not at all.’” While advocating for mastery over what is in one’s control, Hobson recognizes that bootstrapping does not eliminate systemic issues. Boardroom diversity, for one, remains a challenge.
“I think it’s something like 70% of board seats are still held by white males, despite representing only 30% of the population,” Hobson said. “You can check my math, but the disparity is undeniable.” Indeed, the numerical reality speaks volumes—78% of Fortune 500 board seats are held by white individuals, with more than half occupied by white men, according to a Deloitte report.
Despite progress across racial and ethnic lines, sustained efforts are imperative to foster inclusivity in boardroom diversity and across corporate America. Hobson has been chipping away at this work on multiple fronts for decades.
Her story demonstrates the transformative power of resilience and steadfast determination. A trailblazer in boardrooms and a champion for diversity, Mellody Hobson is breaking barriers and bridging gaps to ensure a more equitable society for the next generation of leaders.