Where are the women?Taking a seat on the Board: How Women Directors

impact Company Success

Lora L. Hyler

Owner

Hyler Communications

www.hylercommunications.com

Which is more difficult to attain?An Oscar Or…

appointment to a CorporateBoard?

Oscars: view from the top

“I don’t see any reason why the Academy should represent the entire American population. That’s what the People’s Choice Awards are for.”

- Frank Pierson, former academy president and current Board of Governors member.Chicago Tribune, February 19, 2012

Women in Corporate America: View from the top

• The Wall St. Journal Report: CEO Council, composed of nearly 100 chief executives of large U.S. companies & cos. outside U.S.

• Women graduate from college in greater numbers than men and enter the

workforce at similar rates• Yet, at every stage, men are more likely to

advance- Wall Street Journal article, Nov. 21, 2011

By the Numbers

• 58% of college graduates are women• 53% of workers coming in are female• 37% at lower middle management• 28% at VP level• 14% executive committee• 3% CEO - McKinsey & Co.

High Cost of the Gender Gapwhy CEOs need to focus more on women

On CEO Accountability: “it’s an economic priority.”“From 1970s until today, the fact that more women entered the workforce was a big driver of GDP growth. “

“I look at our own firm. We’re trying to find the best talent in the world. 25% of our intake are women, 58% of college graduates are women, What’s going on?”

- Dominic Barton, Global Managing Director, McKinsey & Company

From Wall St. Journal article, Nov. 21, 2011

High cost of the Gender Gap cont’d

“Men are promoted on potential, and women are promoted on performance. One of the greatest training grounds for me was the boards I served on.” - Debra Lee, COO of BET Networks

“In G-rated movies, we are showing kids a really almost ‘50s version of society. There are far fewer female characters.80% of the jobs are held by male characters.There are no female scientists, medical professionals, lawyers, politicians, business executives.”- Geena Davis, Geena Davis Institute on Gender in Media

Women Board Directors: Global view

Norway

Sweden

Finlan

d

So. A

frica U.S.

Israe

l

Canad

aChina

Italy

Japan

05

101520253035404550

Norway is leader at 39.5%; U.S. Follows at 15.7%

U.S. Board CompositionFortune 500

White malesWhite womenWomen of colorMen of color

77.6%

6.8%12.7

2.9%

U.S. Women Organizations at forefront of this issue

“Unless and until companies take concerted action to reach out and seriously consider qualified women for these positions, there is unlikely to be any real change in board composition for decades to come.”

InterOrganization Network (ION)• Composed of an alliance of 14 women business organizations throughout U.S.• Milwaukee Women Inc. is a member• Also, The Boston Club • ION’s work supplements Catalyst by focusing on

Fortune 500, plus smaller businesses

- ION’s 8th annual status report of Women Directors and Executive Officers of Public Companies in 14 Regions of the United States

The Boston Club 2011 Census Findings

• Surveyed 100 largest public companies in Massachusetts

• Despite growth in newer sectors such aslife sciences and technology, there remains a dearth of women in boardrooms and executive suitesOne survey sponsor says: “70% of U.S. organizations still do not have a clearly defined strategy or philosophy for developing women for leadership roles.”

The Boston Club Census Findings (cont’d)

• Out of 836 seats in boardrooms of 100 largest public cos. , 93 (11.1%) are filled by women• These figures have not changed appreciably over past 6 years• Opportunities lie within smallest companies (Less than $500 million in annual revenues)

“Board turnover (response) shows the difference between leaders who understand the business case for inclusion and those who do not.”

Harvard Business School PanelFebruary 25, 2012

Boardroom Perspectives: Getting There and Making an ImpactModerator: Toni Wolfman, Bentley UniversityPanelists:• Dina Dublin, Professor, Harvard Business School• Myra Hart, Professor Emeritus, Harvard

Business School• Diane Moes, Partner, Donoghue Barrett & Singal, P.C• Hope Neiman, Chief Marketing Officer, Eastman Chemical Co.

Boards they served on:Microsoft, Pepsi Co., Accenture, Kraft, Chase and Office Depot

Harvard Business School PanelKey Observations

Skills that translate into success• Decide what you want to bring to the Board• Consider beginning with Board of advisors• Critical willingness to ask questions, prod

management• Curiosity to understand industry, competition• Willingness to do whatever it takes to get the

job done-i.e. 40 hr. weeks over months during planned corporate merger deliberations

• Maintain certain degree of dispassion, especially on non-profits

• On non-profits, be prepared to leverage relationship for money or services

Harvard Business School PanelKey Observations (cont’d)

• Helps to have more than one woman in room• Work to become effective member of group• Once you get one board appointment, be

prepared to be deluged with calls. “Vernon Jordan effect”

• Take personal responsibility for making boardroom conversations more open

• Board service helps with recruitment, Find ways to have conversations outside the boardroom

• Bathroom conversations count!

Impact of Women in the Boardroom• More collaboration and less insular decision-making• Greater willingness to change• Women are primary household consumers & bring their perspective into Boardroom• Women advocate for women in organization• Serve as mentors• Improve company image• Positive impact on bottom line of Corporations!

Catalyst 2004-8 report which measured return on Sales, invested capital and return on equity: Fortune 500

Wisconsin view

Milwaukee Women Inc.• Formed in 2002, conducts annual census and issues biennial

report on gender diversity of boards/C-suites• In 2011, Surveyed Wisconsin’s 50 largest public companies• 2014 goal: 25% women directors• Women make up 14.4% of Directors, up from 12.8% in 2009• 63 of 439 seats are held by women• Nine companies have 25% or more women Directors

-Measuring Change 2011 reportwww.milwaukeewomeninc.org

Wisconsin view (cont’d)

• Milwaukee Women Inc. has pledged to work with business and community leaders to reach 2014 goal

• Has established a partnership with the Kellogg School of Management to provide a database of qualified women candidates for board service• Show of hands

Wisconsin CEOs: on Women in the Boardroom

“I believe it is very important to receive the female point of view in our Board Room. Our three female board members are not shy and their input is valuable.” - Bud Bergen, Pres. & CEO, Bon Ton Stores

“Diversity isn’t just about diversity in the visual sense; it’s about diversity of thought, background, and perspective. Diversity sets a tone and energy, and fosters growth throughout our company by cultivating better decision making.”- Jeffrey A. Joerres, Chairman & CEO, ManpowerGroup

CEO sets the tone

Bentley University’s new Center for Women and BusinessFounded byBetsy Myers

“What we have seen is just becausea CEO says all the right things doesn’t mean it will necessarily happen.When programs and Initiatives are measured is when progress is made.”

Winning Characteristics

• Finance skills• International expertise• Previous board experience• Technology experience• Public image• Media management skills• CEO experience : 18 female CEOs out of Fortune

500• Boast more: Dec. 5 WSJ article

Next Generation Insights

• Bentley University conducted a national survey of 1,000 college-educated young men and women ages 18-30

• Survey results provide insights into decades-long issue of why women don’t hold a fair share of board seats• Harvard Business School – small luncheon group discussion

Hope for the Future

• STEM efforts• Teen leadership efforts• Women as self lobbyists: crafting a public

Image, leveraging the media, expandingNetworks to include CEOs and Board contacts

Making the Business Case

“Companies with sustained high representation of women board directors…significantly outperform those with sustained low representation.”What IfsAll stakeholders need to ask “Where’s the women?”

- The Boston Club Census