When Calvin Butler became chief executive of electric utility operator Exelon in late 2022, he joined a small but growing club: Black CEOs at Fortune 500 companies. Butler, 53, was soon joined by the new top executive of another large utility in May, Southern Company's Christopher Womack, bringing the current number of Black CEOs on the list to nine.
While that tally is a new record, and features heavy hitters like Roz Brewer of Walgreens Boots Alliance, it still underscores how under-represented Black executives are in American corner offices, given that 12.4% of the U.S. population identifies as Black. Butler says large companies have to keep pushing their diversity initiatives, as well as be consistent about identifying talent and nurturing it. That means giving promising aspiring executives assignments that challenge them, despite the noise out there against diversity, equity and inclusion efforts. "We have a very diverse team at Exelon and that didn't happen because one day I woke up one morning and said, 'Let's make a diverse team,'" Butler told Fortune. "We have to be very intentional about it and unapologetic."
Butler has worked for 15 years at Exelon, which owns six utilities in the Mid-Atlantic and Midwest. He credits his mentors with advocating for and giving him tough assignments, from operations to human resources to mergers. And he doesn't buy into the notion that companies can’t find enough Black talent. He contends they have to look harder within their own ranks to find high-potential employees, whether Black or from another under-represented group. "I disagree with the premise that there’s not enough people of color ready to step into CEO roles," Butler says.
This interview has been edited and condensed for clarity.
Fortune: You are one of eight Black CEOs in the Fortune 500, a record number but still a major under-representation. How can corporate America build a fuller pipeline of talent?
We have to be more intentional in our diversity efforts. Just as corporate America started years ago to be more intentional about engaging in promoting and providing opportunity for women, it must be intentional about doing that for African-American and Latinx leaders within any organization. I disagree with the premise that there are not enough Black people ready to step into a CEO role. I believe there are plenty who have been ready to lead Fortune 500 companies, well before now. They're here today, they'll be here tomorrow. It's a matter of the culture of organizations being ready to accept that.
There is so much pushback nowadays against talk of DEI or ESG. Could this hurt efforts to bring more people of color and others from underrepresented groups into the c-suites of the nation?
At Exelon, it's a core value of who we are. If we stand for our values, it doesn't really matter what everyone else says. Where people get into trouble is when they get pushback and then go against the values they say they represent.
What about diversity of opinions? Surely not every one of your 19,000 employees believes in the same things. What's your message to employees who may tell you they have a different view of diversity efforts?
You're absolutely right that not everybody shares those values, but they know ours. I will say to them, "Our values are very clear. I'd love for you to stay working here but if this is not the company for you, that's okay too. Just like I'm respecting you disagreeing with me, you need to respect others you work with. And as long as you come to work and don't disrespect those you work with, we have no concerns." I do receive those emails and I respond to them exactly in that way.
When you see the kerfuffles around Disney, Target, Bud Light, does it give you pause about how vocal to be on matters of DEI?
It doesn't give me pause. What it does is it requires us to be very clear in our communications. Think about the examples you cited. They wavered in their values. They took a position initially and stepped away from them. Your employees look for consistency, as do your customers.
You're a first-time CEO and benefited from mentoring and higher-ups giving you opportunities to learn different aspects of operations, something a trained lawyer needs when rising at a utility. How did you map your way to the top?
Your next move doesn't always have to be a move up. I use the expression, "Be ready at all times to leave." I just added different tools to my tool belt along my career. There is only one top job, and when you are being considered for that top position, you want to have a portfolio that shows you're a diverse, experienced leader and can lead across multiple segments. I've run operations, government affairs, legal, regulatory functions, and ran HR (human resources) for a year. And when you look at the job of CEO, it's all those things. So I've taken many side steps to ensure I had the experience. I'm not the expert but I know how to engage my teams to get the best out of them because I've sat in their seat.
Let's talk about Exelon's business now. You're in a regulated industry so where does growth come from next?
The further electrification in our communities and in our infrastructure are leading to growth. Take Walmart, one of our largest customers for our portfolio of six utilities. They are electrifying their vehicle fleet, as well as their stores for electric vehicle charging. Amazon and UPS are also electrifying their fleets among others. And we want to help build out EV (electrical vehicle) charging stations where people live. We are committed to all neighborhoods and we cannot leave any traditionally under-resourced neighborhoods in this transition.
What about data centers, which rely on enormous amounts of electricity? You're seeing a lot of data center activity emerge in the Chicago suburbs where Exelon operates.
The Chicago suburbs are bringing on more data centers than any other part of the country right now. That's because of the cost, but also the reliability. The quality of power is becoming more of a priority because supercomputers need reliability in their ability to connect to the grid, and the voltage quality, because any dips affect their whole operation. So data centers are a big opportunity for us.
Get to know Butler:
- Butler is a lawyer by training and attended law school at Washington University in St. Louis.
- He organizes a loose version of a c-suite book of the month club, asking his leadership team to read a book to be discussed as a group. "California Burning" by Katherine Blunt was one such recent book, chronicling the fall of PG&E, the California utility.
- The CEO is an avid baseball fan and sits on the Cal Ripken Sr. foundation, named for the Baltimore Orioles legend.
June 30, 2022: The headline of this story has been updated to reflect the current number of Black CEOs at Fortune 500 companies.
