Nepotism or Network? Understanding the Power of Connections

Recently, the sports world has been abuzz with the news of LeBron James' son, Bronny, getting drafted by the Lakers. The reaction has been mixed, with some celebrating the moment and others decrying it as blatant nepotism. Critics argue that LeBron and his agent, Rich Paul, leveraged their influence to ensure Bronny's spot on the team, bypassing merit and fairness. This controversy highlights a longstanding reality in both sports and the broader professional world: the pervasive role of social capital.

Throughout my career on Wall Street, I have witnessed nepotism in full force. The children of my colleagues were often the first to secure internships, gaining access to opportunities that would exponentially grow their social capital. These young individuals had the privilege of easy access to CEOs and other industry executives, effectively setting them on a path to success from a young age. It's not just colleagues' children who benefited; clients' kids often found similar doors opening for them.

This is not a new phenomenon; the world has always been about connections, and it's often more about who you know rather than what you know.

The world has watched Bronny grow up, attending games with his dad and essentially going to work with him. I’ve seen the same in my career. During "Bring Your Kid to Work" days, traders had their children at their desks, smashing Bloomberg keyboards and running around the office, experiencing what a corporate setting was like. That alone made a huge difference in their young lives. I saw kids running around on the NYSE floor and other trading floors as well, and that also made a huge positive impact on them. Fast forward 15-plus years, and many of these kids are now in the finance industry. This isn’t by accident or some twist of fate.

We’re all influenced by our environments in some way, whether good or bad.

Recognizing this disparity was one of the key reasons I founded the Greenwood Project. I wanted to be the bridge for Black and Brown kids, introducing them to the financial services industry and becoming a part of their network to facilitate access to life-changing internships. If I didn’t step up to create these opportunities, who would? If I didn’t expose these amazing, talented, and brilliant kids to the myriad careers available in finance, how would they even become aware of them?

The impact of social capital cannot be understated. I often tell students that their network will open doors that their college degrees alone cannot. Building a network is crucial in navigating the professional landscape, especially in industries where opportunities are often tightly held within established circles.

It’s not lost on me that my own kids have an incredible amount of social capital. I would like that to be the same for every single child, everywhere. That’s why I am so passionate about the work I do.

Another crucial element in increasing social capital is travel. Every summer, I took students to New York City for a week on Wall Street, where they would visit at least two companies a day. The goal was not just to expose them to corporate settings but to get them out of their communities in Chicago and onto a plane—many for the first time. Years later, many of my mentees are now living and working in cities outside of Chicago. Travel is vital for every kid. I wish every student could experience some level of travel from an early age on, especially when they are in college.

Exposure to corporate settings also makes a profound impact. I often hear from college interns placed at financial firms about their first day and their first week on the job. When I ask them what was the most impactful thing, overwhelmingly they talk about the office experience—being in an office, being downtown, dressing up, working on the 60th or 70th floor of a tall building for the first time. These experiences make them feel like they belong and are incredibly important for their professional development.

The situation with Bronny James underscores a broader truth: connections matter. While some view this as an unfair advantage, it is essential to recognize that this dynamic is deeply ingrained in many facets of society. The key is not to bemoan its existence but to work towards ensuring that these powerful networks are accessible to all, regardless of background.

To make this world work for everyone, we need to be intentional about equality of access to opportunity. We need to ensure that every child has the ability to increase their social capital. There is no lack of talent; what we have is a lack of access to opportunities.

In conclusion, the world of social capital and connections is complex and often controversial. While nepotism can be seen as an unfair advantage, it also highlights the importance of having a network that supports and advocates for you. Through my work, I strive to level the playing field, providing Black and Brown students with the social capital necessary to thrive in the financial services industry. By expanding their networks, we open doors to opportunities that can alter life trajectories, ensuring that talent and brilliance are recognized and nurtured, no matter where they come from.

Let's continue to build bridges, expand networks, and create opportunities for the next generation. After all, if we don’t do it, who will?