Posts Tagged ‘CEO’
The Daughter Effect?
Women earn, on average, 77 cents for every dollar earned by a man in the United States, with global percentages varying, but rarely better. Can having a daughter help close the gender pay gap, as some newspapers allege? In today’s guest post, Catalyst’s Jeanine Prime, Senior Director, Research, explores this question. According to Jeanine, the so-called “daughter effect” only goes so far.
———–
If you read the The Wall Street Journal or Financial Times recently, you might come to believe the so-called “daughter effect” can have a powerful impact on wages.
Recent coverage of the daughter effect cites an academic study of salaries of hundreds of thousands of Danish workers at 6,231 firms. The researchers found that when a male CEO had a daughter, the wage gap in their company closed, on average, by 0.5%. And when a male CEO’s first-born child was a girl, the wage gap closed by nearly 3%. The birth of a son had no effect on the gap.
“The first daughter ‘flips a switch’ in the mind of a male CEO,” the authors wrote, “causing him to attend more to equity in gender-related wage policies.”
This seems a bit of a stretch.
According to the original research, the daughter effect was only large enough to be called statistically significant in companies with 10-50 employees. This tells me that, at best, having a daughter might have a small bias-reducing effect on the salary decisions over which a CEO has direct control. This explains why in a small company, where the CEO’s span of control is more direct, the daughter effect can be felt.
But the effect of having a daughter is apparently not so mind-altering or powerful enough to inspire a CEO to display the kind of dedicated advocacy that’s needed to overhaul the institutionalized bias ever-present in many large companies with more complex talent management systems.
This rings true for me. In Catalyst’s Engaging Men series, we looked at what factors make men advocate for gender equality on this grander scale, as visible gender equity champions within their workplaces. We did not find that having a daughter was a factor in creating champions. Rather, our research suggests that a deep commitment to fairness sets many champions apart. Having a working spouse can make a small difference too.
The bottom line: While I’m sure having a daughter can be transformative for some men, for most men it isn’t enough of a call to advocacy. And this makes sense.
Men have been having daughters since the beginning of time, but throughout the world, gender inequity and the wage gap remain entrenched.
———-
Jeanine Prime, Ph.D., Senior Director, Research, leads studies of women’s leadership and organizational effectiveness at Catalyst. She authored the first two studies—Women “Take Care,” Men “Take Charge:” Stereotyping of U.S. Business Leaders Exposed and Different Cultures, Similar Perceptions: Stereotyping of Western European Business Leaders—in Catalyst’s research series that examines gender stereotypes and the ways in which stereotypes contribute to gender disparities in the global workplace. Additionally, Dr. Prime leads cross-cultural research examining strategies for creating inclusive workplaces, including techniques for engaging men in gender diversity. She has a Ph.D. in Social Psychology from Cornell University, an M.B.A. from the State University of New York at Binghamton, and a B.A. in Psychology from Spelman College.
C This
Corporate boards have grown less diverse over the past six years—but why? Is the recession to blame, or an uptick in African-Americans choosing to retire from boards, or an unintended consequence of U.S. financial legislation? To find out more about the culprits—and what you can do to help reverse the trend—check out today’s C This.
——–
Dropping the Ball
Last year, white men made up 72.9% of board members at the nation’s 100 largest companies, up from 71.2% in 2004. Why are the numbers going backward? As I suggested to MSNBC, amid the recession many companies took their eye off the ball when it came to diversity. Companies are not actively excluding women—they’re just not making a focused effort to include them.
READ: “Minorities Lose Ground in Big Corporate Boardrooms,” by Allison Linn, MSNBC, 5/3/11
Just Say “No”
Study after study has shown that companies with more women in senior positions outperform those with fewer. Joe Keefe, CEO of Pax World, argues that shareholders should say “no” to all-male corporate boards on annual proxies, and say why. And I agree. If you have a voice as a shareholder—use it!
READ: “Women-Savvy Companies: A Better Investment Bet,” by Linda Tarr-Whelan, The Financial Times, 4/25/11
Messing Up Mentoring?
What are the pitfalls around mentorship programs? At the top of the list: a lack of clear goals. “Without a goal—a reason for the mentoring program—there can be no strategy, and without strategy, you won’t create a mentoring impact, let alone a mentoring culture,” said Ann Tardy, a San Francisco-based management consultant. “Before you do anything else, determine why you want a mentoring program, what goals you have for the program, and what success will look like.”
READ: “How Companies Mess Up Mentoring,” by Harvey Schachter, The Globe and Mail, 5/9/11
Top Earners Mostly Men
A survey of the salaries, bonuses, and long-term incentive awards of CEOs from America’s top 350 companies found that median compensation surged 11% to $9.3 million this past year. Poring over the names of the 350 top earners, I was disappointed to see only a handful of women. Since most top earners are men, it’s no wonder that women lag men in pay throughout the rest of the system.
READ: “CEO Pay in 2010 Jumped 11%” by Joann S. Lublin, The Wall Street Journal, 5/9/11
Macho Men
Bad news for “macho” men: New research has shown that sixty-five-year-old men with macho attitudes are about half as likely as their peers to have gotten basic preventative medical care in the past year. And Catalyst research suggests that dropping a “macho” attitude is a key determinant of whether men support or resist efforts to close gender gaps in the workplace. So, do you still want to be a macho man?
READ: “Machismo Kills Men,” by Christopher Shea, The Wall Street Journal, 4/26/11
C This
The gender gap receives attention as a serious business issue as more corporate leaders adopt programs and policies to remove barriers to advancement of women. Women are being recognized as a source of talent and future leadership, and progressive business leaders are working toward a truly level playing field. Some recent stories point to research by Catalyst and others to support these actions.
Women in Power Is a Leadership Issue
In a opinion piece in The Globe and Mail’s Time to Lead: Women in Power series, North American Vice President Deborah Gillis uses facts and research to counter the misconceptions that women have made it and that promoting women disadvantages their male colleagues. The fact is that women continue to be underrepresented at senior levels of business and in Parliament. And corporations with women at senior levels are growing their bottom line—and opportunities for all their employees.
READ: “More Women in the Workplace is Good for Business”, by Deborah Gillis, The Globe and Mail, 10/13/10
Women on Boards Correlate to Stronger Financial Performance
Corporate recruiter Janice Ellig, CEO of Chadick Ellig, cites research by McKinsey & Company and Catalyst to demonstrate effect of senior women on financial performance. “It’s not just in the boardroom, it’s at the C-Suite too. Those are the people making the decisions.”
Gender Diversity: Not Just a Woman’s Issue
Gender equality is still an issue at work, but it is not a women’s issue. Gender initiatives have traditionally focused on improving women’s participation in the workplace, but recently (in sociological terms, anyway) there has been a shift towards making “gender-“’ a gender-neutral problem.
Powerful Women Make Mistakes—and Make the Most of Them
Moira Forbes blogs about the similarities between an effervescent seven-year- old’s “awesome” pink cast and the lessons some powerful women have learned from apparent setbacks.
READ: “What Do Highly Successful Women and 7-Year-Olds Have in Common? by Moira Forbes, Forbes, 10/12/10
2010 Catalyst Awards Reflections
“If you want to understand the past, look at current conditions,” said PepsiCo CEO Indra Nooyi at last night’s Catalyst Awards Dinner, quoting an old Chinese proverb. “But if you want to understand the future, look at today’s actions.”
All the great speeches and conversations about the Award-winning gender initiatives from Campbell Soup, Deloitte, RBC, and Telstra demonstrated a bright future for women in business. A lot of work remains to be done, but I left The Waldorf last night knowing we were a little closer to gender parity in business leadership.
The day was filled with engaging, inspirational, and sometimes hilarious moments. I appreciated the down-to-earth advice on men championing women from Frank McCloskey, Vice President of Diversity at Georgia Power. “It’s a manager’s obligation to create a work environment where everyone is valued,” he told a standing-room crowd. “I hope y’all change your culture—if not, we’ll take your people,” he jibed.
Later that day, Irene Chang Britt, President of Campbell Soup, North America, discussed her views on work-life. Like me, she does not like to use the word “balance.” She prefers the term: “work-life integration.” After all, she said, “We’re all nuts if we think we’re balanced.”
Awards Time
It’s finally here!
This Wednesday, March 24, I will gather with thousands of Catalyst supporters, CEOs and other leaders at The Waldorf=Astoria in New York for our annual Catalyst Awards Conference and Dinner. The day will be filled with lively panels on women’s advancement into leadership, plus in-depth presentations by CEOs from Campbell Soup, Deloitte, RBC, and Telstra whose initiatives won the 2010 Catalyst Award. In the evening, we will formally recognize our Award winners’ initiatives and celebrate their success.
This year, close to 80 CEOs from Fortune 1000 companies and leading professional organizations will attend along with a sold-out 1,500 guests for an evening of celebration. If you can’t make it to the Waldorf, join us virtually via our special Awards Conference Twitter feed. Online or in-person, I want you to be a part of our special day. I look forward to seeing you and sharing in the excitement.
Zero-Sum Myth
If a woman lands a job, does a man lose one? Online commentary about our latest report, Pipeline’s Broken Promise, suggests that many people still believe this.
The study revealed that women MBAs from top business schools begin their careers, on average, in lower-level positions, are paid less, and receive fewer promotions than their male counterparts— regardless of global region, industry, and whether or not they have children, among other factors. I was disheartened by the findings, as were the CEOs quoted in the report. James S. Turley, Chairman and CEO of Ernst & Young, called them “surprising and disappointing.” Janice L. Fields, President and CEO of McDonalds USA, used the word “deflating.”
But online voices took a markedly different tone.
The majority of comments on the stories by ABC News and The Globe and Mail about the report expressed skepticism toward the findings. Some harbored a sexist point of view. At their core, I think the comments rested on a single fear: more women at work hurts men.
Nothing could be further from the truth.
Our report, Engaging Men in Gender Initiatives: What Change Agents Need to Know, revealed that men have much to gain, including better psychological and physical health and more rewarding relationships with their families. Not to mention the money angle. Think about it like this: if your wife lands a great job or gets a raise, your whole family benefits— not just your wife. So does the economy, as women control the majority of consumer spending. More cash in hand… more money to contribute.
Companies benefit as well. Catalyst research shows that companies with more women in leadership have, on average, better financial outcomes than those with fewer women in those roles. So not only are your wife, daughter— even your mother— given a fair shake in the workplace, your company gets a potential boost as well.
Diversity is not a zero-sum game. The notion that “women are taking over” at the expense of men sounds like a plot from a cheesy 1950s sci-fi flick. It’s a myth, and it’s outdated, so much so that it was recently lampooned by the Daily Show. It must be laid to rest.
It’s 2010: What Do You See?
Clicking through the news last night on my laptop I was struck again by the obvious. Despite the gains women have made over the past 50 years, I realized it still looks very much like a man’s world.
One need look no further than images of captains of finance testifying on Capitol Hill, senators sparring over the health care bill, world leaders at G20, front page photos from our nation’s (remaining) daily papers and the many company spokespeople and “talking heads” that fill our airwaves.
What’s wrong with these pictures? They’re mostly guys!
These powerful images reinforce the perception that men rule the world— that it’s the natural state of things. Here’s a quick test: close your eyes and picture the image of a leader? Who do you see: a male or female? For Alan Murray of The Wall Street Journal, only men come to mind. Have countless images of men in power created a self-fulfilling prophecy by making it seem normal— to both women and men— that only men should lead?
In 2010, of course, that’s no longer true. Today, women comprise close to 50% of the US labor force and control or influence over 70% of the consumer purchasing decisions in America. That includes choices about spending on cars, financial services, health care and so on. Clearly, women rule in the marketplace. So why shouldn’t they rule in companies that produce the goods and services they buy?
Frankly, pictures with no (or very few) women should strike us as just as out of step with the times as the linebacker shoulder pads worn by Melanie Griffith and Sigourney Weaver in the 80′s classic, Working Girl. Or floppy bow ties. Or floppy disks.
One time I spoke at a technology conference in Beijing where I was the only woman of 13 speakers. The majority of the audience—several hundred—were male. I opened my speech with a famous quote from Mao’s Little Red Book, “Women hold up half the sky!” Then I asked, “What’s wrong with this picture?”
The audience laughed. But they got it. And I guess that’s the point. There are men who get it— in part, because we show them— but real progress is when they see it unprompted.
Only 15% of board seats and 3% of CEOs in Fortune 500 companies are women. And women make up only 17% of the House and Senate. Perhaps more diverse imagery online, on TV and in our nation’s newspapers could lead to more diverse workplaces, boardrooms, and even governments. After all, if you don’t see diversity— if you don’t see women included and leading, too— what do you really see?
RSS
Subscribe to Catalyzing
