We seek to help solve the puzzle of why top-level leaders are disproportionately White men. We suggest that this race-and sex-based status and power gap persists, in part, because ethnic minority and female leaders are discouraged from engaging in diversityvaluing behavior. We hypothesize, and test in both field and laboratory samples, that ethnic minority or female leaders who engage in diversity-valuing behavior are penalized with worse performance ratings, whereas White or male leaders who engage in diversity-valuing behavior are not penalized for doing so. We find that this divergent effect results from traditional negative race and sex stereotypes (i.e., lower competence judgments) placed upon diversity-valuing ethnic minority and female leaders. We discuss how our findings extend and enrich the vast literatures on the glass ceiling, tokenism, and workplace discrimination. Women and non-Whites have made remarkable gains in the workplace in recent decades. Non-Whites and women outnumber White men in the U.S. workplace by a margin of two to one (Burns, Barton, & Kerby, 2012). However, a demographic status and power gap remains, as recent data show that only 25 Fortune 500 companies are headed by people of color and 21 by women (Catalyst, Inc., 2013; Diversity, Inc. staff, 2012). Likewise, corporate boards in the Fortune 500 are primarily composed of White men (74.4%), followed by White women (13.3%). Among ethnic minorities, 6.8% of corporate board members are African American, 3.1% are Latino, and 2.4% are Asian American (Zweigenhaft & Domhoff, 2011). The status and power gap between men and women persists despite meta-analytic evidence suggesting that women tend to be rated as better leaders than men (Paustian-Underdahl, Walker, & Woehr, 2014), and any performance evaluation gap that may exist fails to account for the highly visible status and power gap within organizations (Joshi, Son, & Roh, 2015). Despite non-Whites and women outnumbering and sometimes outperforming their White male counterparts, only rarely are they given the reigns of the most powerful organizations in society. Economists are perhaps most disturbed by this phenomenon, as orthodox economic theory would predict that it is suboptimal for society to select its top leaders from only 34% of the population (i.e., the White men; The Economist, 2008). 1 One way to potentially reduce this status and power gap is to place women and non-White leaders We would like to thank Russell Cropanzano and Yuchen Zhang, as well as the entire leadership division of the Leeds School of Business. We would also like to thank Roland Smith, Michael Campbell, Shannon Bendixen, Xiuxi (Sophia) Zhao, and Angeline Lim at the Center for Creative Leadership, and, last but not least, the RSG for their tireless support of this project.