Successful Latino urged to 'pay it forward'

Louis Caldera shares his story as a Board Director

By Bill Sarno

Louis Caldera has served nearly 20 years on public company boards, contributing to several companies' guidance during challenging times in diverse industries.

This experience, complemented by decades of CEO-equivalent roles in the profit and nonprofit sectors, is his key to success. Caldera has served in the military, politics, academia, and the Clinton and Obama presidential administrations - this experience has given the former U.S. secretary of the Army a frontline view of how board focus is evolving. He advises that representing shareholders still counts, but boards also face many other challenges. 

Caldera stresses that for companies to remain relevant in a vexing economic and political climate, directors with a wide range of backgrounds and disciplines are essential to recognize the opportunities and risks around the corner. He stresses, "For richness in solutions, we really need a team with many different types of backgrounds and disciplines." 

Caldera observed that many boards are shifting toward stakeholder capitalism, which causes sensitivity and attention to Environmental Social and Governance issues, the needs of employees and business partners, and their communities. "Our obligation is to be smart, thoughtful, humanistic, and to hold a high ethical standard," Caldera said.

Not long after his tenure as Army secretary in 2001, Caldera, a Texas-born son of Mexican immigrants, made his boardroom debut with the governance team at Dallas News Corporation. He now chairs the compensation board of the company.

Caldera also is a board member for Meritage Homes and Granite Construction. He previously was a director for Southwest Airlines Co. and Career Education Corp. 

Caldera, who holds degrees from West Point and Harvard University, said he has learned a lot serving on public company boards. This includes a keen awareness that personal relationships are essential. "A third of board searches are through search firms, but two-thirds come through networking, relationships with people on a board," he advised.

Networking has been an important factor in Caldera's career trajectory. He also proactively uses his connections to open doors for Latinos, which he sees as beneficial to public companies eager to serve different populations.

"If you are going to do a good job creating diverse communities, you have to have managers who understand those communities," he said. "The more diverse the team is, it is less likely to be blindsided by issues you missed because you don't think that way."

Caldera has chaired public company audit and nominating and governance committees in the boardroom and has served on special board committees dealing with sensitive legal, regulatory, and personnel matters.

The role of a future-oriented nom/gov committee is especially relevant in developing strategies and management which can address issues such as cybersecurity, international operations, and the pandemic.

According to Caldera, boards need to address the most significant questions: how do rising inflation and the possibility of a recession impact their business, how does COVID impact supply chains, human capital management, and how to find and retain talented employees.

Moreover, directors need to recognize the concerns of younger generations. He expects this crowd to push companies to be on the right side of issues important to them, such as racial equity and climate change. "You need to make sure to have the right skill set," he said, "and this includes having younger people on the board."

Caldera advises Latinos who want to serve on a board to be good in their current jobs. This will produce the credentials that boards seek and lead to opportunities. Networking is also an essential factor in advancing onto corporate Boards. 

Caldera says successful Latinos should "pay it forward" by helping identify and support the executive talent in their rising population, but it remains highly underrepresented. "We need to do a better job of giving Latinos visibility," he emphasizes.