JANICE REALS ELLIG

The uphill battle for women

to get to the top
Janice Reals Ellig janicerealsellig.wordpress.com Women on Boards
I was among an illuster group of women being interviewed by Eve Tahminicioglu for MSNBC.com

Getting women to the top is still an uphill battle, as long as the top echelons of most U.S. companies
remain very white and very male.

Calvert Investments and Connecticuts Treasurer tried to get Urban Outfitters to agree to consider
bringing women and minorities onto its seven-member, all-white male board.

What we asked was that every time they consider a slate of directors, they also consider a woman
and or a minority as part of that slate, said Aditi Mohapatra, a senior analyst with Calvert, an
investment management company that focuses on socially-conscious investing. The shareholder
proposal didnt require that more diverse candidates be appointed, she noted, just that they agree to
make a concerted effort to at least think about diversity.

Urban Outfitters didnt budge.

They said, We dont have any diversity problem, Mohapatra said.

The proposal was voted down during a companys shareholder meeting.

Its not the first time Mohapatra has tried to convince a company to make such changes. Since 2002,
Calvert has filed 55 similar shareholder measures with a variety of corporations. Her mission is to
boost diversity at the top echelons of business, and in most cases the companies agreed to consider
her proposal. Unfortunately, the top at most of those companies, and at most other companies
across the country, is still very white and very male.

The lack of women leaders in Corporate America is a problem that has only become worse during
the economic downturn. Attempts to make things better have done little to poke even a small hole in
the glass ceiling. If a company is OK with its lack of gender diversity there are no laws to force the
issue.

Of the companies in the Standard & Poors 100 index, which tracks some of the nations largest and
most established publicly traded companies, women make up about 18 percent of the director
positions and only 8.4 percent of the highest-paid positions, according to Calvert. And women
executives were three times more likely to lose their jobs than their male counterparts during the
Great Recession, a survey by research firm Catalyst found.

In yet another blow to women trying to get a level playing field, the U.S. Supreme Court has sided
with Wal-Mart in what would have been the biggest gender bias suit in the nations history. More
than 1 million female employees at the retail giant had alleged they were paid less than men and not
given the same opportunities for advancement. They sought a classaction suit for their case, but the
high court ruled Monday that the suit could not move forward.

In the courts opinion, Justice Antonin Scalia wrote that there was no general policy of
discrimination at Wal-Mart. But alas, gender bias, or any bias at all, is rarely a clear cut company
policy.

Change is slow, said Diana Bilimoria, a professor of organizational behavior at Weatherhead

School of Management at Case Western Reserve University. No question about it, diversity is
challenging, she continued, adding that the big question is how do we encourage board chairs,
CEOs and directors to realize the value of diversity?
Janice Reals Ellig janicerealsellig.wordpress.com Women on Boards
There are a few U.S. companies that actually get it.
There are only 45 companies in the Fortune 500 a list that ranks the top 500 U.S. companies by
gross revenue whose boards are more than 40 percent women, according to a list Catalyst has
compiled. And only 18 corporations had 40 percent or more female executive officers.

One company that has both of these distinctions is Principal Financial Group. The company has
four women board members out of 10 and six female top executives.

The Principal has always had an inclusive culture and environment, said Karen Shaff, executive
vice president and general counsel at Principal.

From my prior law firm experience and knowledge of other companies I think there has been less
of a mindset of inclusiveness and appreciation of the benefits of a diverse workforce, she said.

Mary OKeefe, chief marketing officer for the firm, said four key factors help her and other women
move up: mentoring, flexible schedules, a robust succession planning program and no mommy- or
daddy-track penalties if employees take time off for family issues.

The company, she said, is committed to gender diversity. Theres a conscious attitude that we value
it, and were going to be inclusive and go after the best candidate she added.

That approach makes economic sense to the

firms CEO Larry Zimpleman.

I believe having [a] good gender balance

hasbeen a competitive advantage for us, he
said. Theres a growing body of research that
indicates that women are more balanced and
thoughtful in making important decisions. So,
if improving a companys performance is of
interest, then having good gender balance in
key management positions as well as on your
board will help achieve that objective.

For most companies, however, even if it is a desired goal, gender balance can be an uphill battle.
Many board members are culled from the executive suites of major corporations, but without a lot
of women in those key management seats, there are slim pickings.

Thats why companies have to think outside the c-suite box and look for women from nonprofit
organizations, or for women that run major divisions at corporations, said Janice Ellig, co-CEO of
executive search firm Chadick Ellig.

Companies that are not motivated to search in these places may need a bit more armtwisting, she
added. In 2009, a new Securities & Exchange Commission rule went into effect requiring that
companies disclose how diversity is considered when new board members are nominated.
Unfortunately, the rule didnt mandate that companies actually have a diversity plan, Ellig said.

Janice Reals Ellig janicerealsellig.wordpress.com Women on Boards

I say put more teeth into those rules, she demanded.

But Ellig stopped short of recommending U.S. companies be forced to meet gender quotas on
boards, or in management jobs, something that has happened in other countries.

The lack of female leaders in business is a global problem. Some nations have taken it upon
themselves to mandate more women be added to the leadership rolls, especially in light of a stream
of studies that show more female board members can mean more profits for corporations.

In 2003, Norway passed a law requiring that the boards of publicly held companies consist of at
least 40 percent female members, up from about 10 percent that was the average at the time. Other
European countries are considering following suit.

Early studies of how the quota has impacted Norwegian companies show a slight decline in profits,
but fewer layoffs and a perceived focus on longer-term viability than short-term payoffs, according
to a report called A Female Style in Corporate Leadership compiled by professors at the
University of Virginia and the Kellogg School of Management at Northwestern University.

Stefan Ranstrand, chairman of Tomra, a waste management firm in Asker, Norway, said its good
for the company as we add new dimensions to the decision making process; more [points of view]
result in more decision options and finally a more well-thought-through decision. This ultimately
contributes to higher quality decisions and a better representation of various stakeholder groups in
general.

Whether mandated, or brought about by inclusive minded corporations, getting more women to
the top spots in Corporate America will also take a lot of work by women, management experts
advise.

We have to not wait to be asked to the party, maintained Ellig. Women have to connect with the
people they know who have the influence or power to suggest them for board or C-suite positions.

Indeed, a Harvard Business Review glass-ceiling report on women and mentoring found that: Most
women believe that hard work alone will succeed in turning heads and netting rewardsand underestimate the pivotal
role sponsorship plays in their advancement.

Principals OKeefe believes having mentors helped to build her confidence and ultimately helped
her to move up the ladder.

Managers, including the CEO, she said, were willing to spend time with her and even talk to her
about the leadership roles she saw herself holding someday.

But, she admitted, Maybe it was a bit of luck that this was the company I came to.

This entry was posted in: Executive Search, Women Board Directors, Women on Boards and
tagged Janice Ellig, Chadick Ellig, Executive Search, #JaniceEllig, Janice Reals Ellig,
#JaniceRealsEllig, Women on Boards, Boutique search firm New York, diversity executive search
firm on www.janicerealsellig.wordpress.com

Janice Reals Ellig janicerealsellig.wordpress.com Women on Boards