women in management

Is gender equality good for business?

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Photo Credit: AP Photo / Richard Drew

Is gender equality good for business?

Generally, attempts to answer this question focus on measuring the financial performance, and stock-market performance of companies led by women CEOs or with female directors.

Last week, for example, market index provider MSCI released a study showing that companies with at least 3 board directors or a higher percentage of women on their boards (compared to their country’s average) generated 36.4% higher returns for their shareholders than companies where women were not as well-represented. This analysis was based on a review of 4,000 global companies since 2009.

We’re not surprised to see gender equality correlated with financial success. Past studies (such as this one from Credit Suisse, and another from Catalyst) have shown similar relationships between gender diversity in the senior leadership and financial out-performance.

So if gender equality means financial success, why aren’t there more companies jumping on the bandwagon? We’d venture to guess that part of the reason is simply that the studies show correlation — not causation. Financial performance is easy to measure but it’s a tricky thing to understand, much less find a “formula” for. Many variables go into what makes some companies more successful than others — as mountains of business books demonstrate.

Another reason may simply be that female representation at the upper echelon of a company is not exactly the same thing as “gender equality” at that company. To use an analogy, having an African-American President of the United States doesn’t mean there is racial equality throughout America.

Don’t get us wrong — It’s certainly important to measure gender equality by tracking the number of companies with female CEOs or directors. However, if you believe a company’s financial success depends on having a culture that welcomes and fosters diversity of thought and opinion, a culture of gender equality throughout all levels of an organization is probably equally important. After all, many critical business decisions are made every day that never make it up to review of the C-suite or director level. The way a digital product is designed, discussions over the way a car’s safety feature is tested, how a new campaign for children’s toys is marketed to households are all decisions initially made at the lower-to-mid levels of a company where diversity and representation of thought are critical.

That’s why we try to measure what all women at an employer think. We ask every woman in the Fairygodboss community whether they think they’re treated fairly and equally to men at work. In analyzing thousands of employee reviews, we’ve found that when women report there is gender equality in their workplace, they also report overall job satisfaction. Since job satisfaction is one predictor of how likely an employee is to remain at an employer — it’s an important measure of employee turn-over and recruitment costs.

In other words, gender equality is certainly good for business in terms of being able to recruit and retain employee talent. Stay tuned for more of our findings about gender equality in the workplace!

Fairygodboss is committed to helping women in the workplace. 

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working women

Getting to the Top Means Being Realistic

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A recent set of Harvard Business School studies show that relative to men, we women believe we’re capable of equal success in the workforce, are less ambitious when it comes to getting the “top” jobs, perceive more conflicts associated with getting these positions, and have more non-career goals in life.

This is headier stuff than first meets the eye.

Notice that the study didn’t draw any causal conclusions. It didn’t because of a concept called “reflexivity.” Reflexivity is the idea that some things don’t have a simple cause-and-effect relationship but rather have a circular cause-and-effect relationship. An example of reflexivity is if both the following sentences are true:

  • Women are less ambitious about getting “top jobs” because they perceive more life conflicts and have other goals.
  • Women have other goals and perceive more life conflicts with getting “top jobs” because they are less ambitious.

We believe that career ambition and career success for women is absolutely a reflexive phenomenon. What we see around us influences what we think we’re capable of and vice-verse. That’s why female role models matter, moms like buying Goldie Blox for their daughters, and society seems to love (and hate) hearing female executives talk about work-life balance.

We all know that some women really are less ambitious than some men (just as some men are less ambitious than some women). But there seems to be a general reluctance to publicly admit that is true for fear of perpetuating another generation of disappointing female leadership numbers. One recent poll even found that a majority of young women think its socially unacceptable to have no ambition.

We can certainly understand that there’s a real fear of deterring some young women from trying to achieve more if we highlight any tradeoffs a career might entail. Whether those trade-offs are for more time with family or simply just increased career-related stress, there is well-meaning concern over dissuading impressionable young minds from achieving their full potential.

However, we are actually encouraged by the Harvard data. We believe that in a career marathon, the realistic ones who plan, research, and are armed with the best information are the ones more likely to survive the difficulties ahead. You wouldn’t attempt to climb Everest with just visions of glory and no expectations of frostbite. The prepared corporate executives are the ones who train themselves mentally, emotionally, and even physically for the challenges ahead. If women are more realistic than men about the trade-offs it takes to pursue anything single-mindedly, it seems to us that they may well be at an advantage.

Not every woman wants to become a CEO nor an executive and that’s absolutely fine. But we think the ones that do have a better shot if they’re realistic (warts and all) about what it may take to get there.

Fairygodboss is committed to helping women in the workplace. Join us by signing up at Fairygodboss.com and reviewing your employer.

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Why We Hate Writing about Marissa Mayer’s Pregnancy

Photo Credit: Ethan Miller / Getty

Photo Credit: Ethan Miller / Getty

Its the last week of summer and many Americans — including us — are enjoying a bit of a holiday.

While we’re abroad, we are watching the foreign press cover the latest news about Yahoo’s CEO as if it’s simultaneously a business issue, social issue, and celebrity gossip piece all wrapped up in one package. Earlier this week, she announced:

Since my pregnancy has been healthy and uncomplicated and since this is a unique time in Yahoo’s transformation, I plan to approach the pregnancy and delivery as I did with my son three years ago, taking limited time away and working throughout.

When it comes to Mayer’s pregnancy, people are mainly talking about 4 things:

  1. Whether she should or shouldn’t be taking a longer maternity leave since she is a role model for other working women
  2. Whether other women should compare themselves to her
  3. Whether we should be judging or discussing her choices at all, since we might not do the same for a male CEO who is expecting children
  4. Whether it matters in terms of her performance as CEO

In other words, pretty much everything you can imagine that could be said about this topic has probably been said. Which is one of the reasons we dislike writing about her pregnancy. We also hate writing about it because we want to simply tell Mayer “Congratulations,” and leave it at that. After all, that’s the normal and proper thing to say to anyone who’s just announced news of twins.

But Mayer is not just anyone. She’s a public figure, one of the highest paid CEO’s in America, and one of the youngest and only female CEOs in the technology industry. Like it or not, her personal life is in the spotlight because she is a more glamourous subject than the millions of other women in America who have little choice but to take a couple weeks of maternity leave after they give birth. We can only assume she has made a self-actualized and well-informed decision, realizes the attention is a casualty of her position, and takes all the corresponding criticism in stride.

In the end, we decided to write about her pregnancy because it gives us an opportunity to say that we believe many women — and also men — experience biases and social pressures that make things very hard to be a whole person at work. Being a whole person means different things to different people, but pregnancy is special example simply because its physically impossible to hide, and affects so many people in the workforce.

Even in this day and age, women continue to experience discrimination because they are pregnant, and also subsequently when they become mothers. This is often despite the best intentions of companies and colleagues. These problems are persistent because they are rooted in biases (conscious or not) and cultural ideas of what it means to be an “ideal worker” and truly committed to our work.

However, that doesn’t mean progress can’t be made. We started Fairygodboss because we believe many companies and organizations don’t look closely enough at gender equality in their culture. Transparency is an important step in creating change – and Mayer has been nothing if not transparent. She has shared her own choices very openly (i.e. a short maternity leave and her on-site personal nursery) and announced big changes to Yahoo’s policies (i.e. expanded paid parental leave and restrictions on working-from-home). Whatever you may think of her personal and professional choices, at least we’re talking about things that matter to a great number of working women — and that in many cases, really should change.

Fairygodboss is committed to improving the workplace for women by creating transparency. Join us by signing up at Fairygodboss.com and reviewing your employer.

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What Top Female Tech Execs Look Like

TOP FEMALE TECH EXECS BY TENURE AT CURRENT FIRM

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We all know about the dismal number of female CEOs and directors in corporate America. But their small number also creates a unique opportunity to study those women who are making to the top.  We may not be investigative journalists, but we do consider ourselves keen observers of female leaders, and we’re very interested in all aspects of their career and success.  This week we decided to do some research on some of the most senior women at the largest tech companies in the Fairygodboss database.

We first looked at the executive management teams of 10 companies: Apple, Google, IBM, Intel, Cisco, Oracle, HP, Microsoft, Amazon, and Facebook.  From there, we made a list of all the women (totaling 25) holding titles of either Senior Vice President or Executive Vice President.  We categorized them by business function (e.g. operations vs human resources) and to bring some focus to our research, we zoned in on the 12 women who appear to manage divisions with P&L responsibilities (including obviously the CEO and COO).

TOP FEMALE TECH EXECS BY BUSINESS FUNCTION

ceo business funtcion Fairygodboss

We read their official bios, google-bombed them, examined their social media profiles, and just generally tried to understand a few things about them: What were their career paths?  What were their educational backgrounds?  What else did they share in common?

Here’s what we found.  Female executives in this group were likely to be:

  • Loyal company employees with 10+ years at their current employer
  • Promoted to their current positions within the past few years
  • Married with children
  • Holders of an undergraduate degree in economics or engineering
  • Daughters of mothers they considered role models
  • Beneficiaries of a mentorship or sponsorship relationship with a current or former CEO
  • Blond, and from the west coast 

While causation and correlation shouldn’t be confused, these women appear highly loyal.  Nobody on our list could be described as a “job hopper.”  Those who spent less than a decade at their present employer, spent similar amounts of time at their prior employer.  Almost none had CVs listing more than 2-3 companies over the course of their entire career.  Perhaps this is simply a generational thing, since few millennials seem to exhibit this kind of loyalty to a company.  Another explanation may be that takes a long time to build the political capital required to get to these levels.  Once credibility is established, it might be quite costly to move.  Moreover, several women appear to have had close sponsorship, mentorship or protege relationships with current or former CEOs (Ahrendts, Wojcicki, James, Catz and Sandberg). 

TOP FEMALE TECH EXECS: YEAR OF MOST RECENT PROMOTION

tenure years Fairygodboss

Approximately 75% of these women were promoted to their senior roles recently (i.e. in the past 3-5 years).  It may be coincidental but we suspect that this timing might also be due to increasing awareness about gender diversity.  Certainly the media has focused on these executives’ gender.  Many of these women were interviewed or spoke at events where they were asked questions about their personal balancing act as mothers and wives (Ahrendts, Wojcicki, van Kralingen, Bryant, Catz, Whitman, Johnson, Sandberg).  Overall, however, these women are relatively private digital citizens: 1/3 of them don’t even have LinkedIn profiles.

A significant percentage of these women have talked publicly about their relatively modest or middle-class backgrounds (Ahrendts, Bryant, Catz), and some are on record citing their mothers as early role models (Rometty, Jacoby, Reese).  While at least half attended Ivy League or “top” universities, the other half attended local colleges.  Regardless of their alma mater’s prestige, half of these women earned either economics (Jacoby, Whitman, Sandeberg) or engineering degrees (Rometty, Bryant, Johnson). 

TOP FEMALE TECH EXECS: UNDERGRADUATE DEGREE

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TOP FEMALE TECH EXECS: ALMA MATERS

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For further reading on these women, we’ve tried to summarize our findings and share some of the better articles about them.

Apple

Angela Ahrendts — It’s doubtful we can say anything new about Ahrendts so we thought the best thing we could do is highlight the best of what we’ve found online.  Much ink has been spilled about her tenure and accomplishments at Burberry in particular, but unlike most of her fellow female executives in this report, she is quite open about her personal life, beliefs and views on “work-life balance“. She hails from Indiana where she also received a degree in Merchandising and Marketing from Ball State University and gave this revealing commencement speech in 2010.  One significant former mentor she had is Donna Karan, who stepped down from her eponymous company recently.  Ahrendts is married with three children.

Google

Susan Wojcicki – Wojcicki’s infamous garage was Google’s first office and after being their first landlord, Wojcicki became an early employee.  She is currently Senior Vice President and CEO of YouTube.  She has been with the company since 1998, and previously ran Google’s early revenue generators: AdWords, AdSense and Analytics businesses.  Wojcicki is a mother of five  and is well-known for her support of mothers and work-life balance.  She earned a degree in history and literature from Harvard University, a Masters in Economics from the University of California, Santa Cruz, and completed her MBA at UCLA.  Before Google, she worked briefly as a management consultant.

IBM

Virginia Rometty – Appointed President and CEO in 2012, Rometty has spent all but two years of her career at IBM.  She was previously SVP of Sales, Marketing and Strategy.  She cites her single, working mother and midwestern upbringing as the eldest of four children as important early influences o her career.  Rometty is married with no children.  She earned a bachelor’s degree in Computer Science and Engineering (via scholarship) from Northwestern University.

Bridget van Kralingen – SVP of IBM’s Global Business Services, van Kralingen runs IBM’s consulting business.  Previously she was the General Manager of IBM’s North American business.  Hailing originally from South Africa, she holds a Masters of Commerce degree from the University of South Africa and Bachelors of Commerce degree from the University of Witwatersrand.  Prior to joining IBM in 2004, she was a Managing Partner at Deloitte in their Financial Services Sector.

Intel

Renee James – Though news has just broken of her departure at Intel to come at the end of the year, James has spent almost her entire career at Intel. She is apparently seeking and interested in a CEO position elsewhere.  Appointed as President of the company in 2013, James was a protege of founder and CEO Andy Grove early in her career.  Prior to her role as President, she ran Intel’s Software and Services Group.  She joined Intel in 1989 via the acquisition of her former employer Bell Communications.

Diane Bryant – Senior Vice President of the Data Centers Group, Bryant  .  By all accounts very supportive of women in technology and women studying engineering, she comes from a modest upbringing in Sacramento, California.  She holds 4 patents, and is a married mother to 2 children.  She discusses her approach to work-life balance here.

Cisco

Rebecca Jacoby – Recently promoted to SVP of Operations at Cisco, Jacoby was for many years the CIO of Cisco.  She received degrees from the University of the Pacific and Santa Clara University.  She advocates for women and cites her mother’s influence on her.  She is the eighth of nine children but has no children of her own.

Oracle

Safra Catz – Co-CEO of Oracle since 2014, Catz joined Oracle as a Managing Director at the investment bank Donaldson, Lufkin & Jenrette.  She held roles ranging from President, CFO and Director at Oracle and is largely credited for Oracle’s acquisition of PeopleSoft.  She’s noted to have an unusual relationship and history with Oracle founder and former CEO, Larry Ellison.  Born in Israel, she grew up in Massachusetts and is married with two children.

HP

Meg Whitman – Whitman joined HP as a Director on the Board in 2011 and was nominated CEO of the company in the same year.  Previously, she had unsuccessfully run for the Governor of California and prior to that she was CEO of eBay, overseeing the company from 1998-2008 when the company grew from 30 employees and $4 million in revenue into a 15,000 employee company generating $8 billion in revenue.  She is married with two children.  

Microsoft

Peggy Johnson – Appointed as Executive Vice President of Business Development, Johnson joined Microsoft in 2014 from Qualcomm where she was most recently Executive Vice President of Global Market Development and spent 24 years in various business divisions.  Johnson’s presidency of the high-profile Qualcomm Internet Services and MediaFLO Technologies divisions is well-known.  She is a mother, holds a degree in electrical engineering from San Diego State University and has written this piece offering advice to help women in technology.  

Facebook

Sheryl Sandberg – Sandberg is a household name for her support and advocacy on behalf of women, so we will simply focus primarily on her career and educational accomplishments.  She is COO of Facebook, which she joined from Google in 2008 where she was Vice President of Global Online Sales.  She was briefly a McKinsey consultant and worked as Larry Summers’ chief of Staff for 5 years while he was Chief of Staff at the Treasury Department.  She is a mother and received her undergraduate and MBA degrees from Harvard University.

Does anything about these profiles surprise you?  Does anything about it make you think differently about gender diversity and advancement opportunities at these companies?  Share your point of view at Fairygodboss.com — where women help women succeed.

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Do Female CEOs Make Life Better for Other Women?

Screen Shot 2015-07-08 at 11.27.51 AMPhoto Credit: Time Magazine

Fairygodboss members sometimes say their companies have “a boys’ club feel”.  But what exactly does this mean?  In some cases, they are literally referring to a group of similar-aged, similar-looking men with similar backgrounds running their companies.  But rarely is a company’s senior management exclusively male in this day and age.  And can a company with female leadership or even a female CEO be a “boys’ club”?

We think the answer is yes.  And we found an explanation for this in an unlikely place: Elizabeth Warren’s NYTimes best-selling book, A Fighting Chance.  Whatever you think of her politics, Warren’s story is incredibly inspiring and compelling.  Raised very modestly in Oklahoma, she was the first member of her family to attend college, and got into politics late in her career.  Time magazine ran a piece called “The Sheriffs of Wall Street” with a cover photo we’ve shown above: all 3 were women.  The article profiled Sheila Bair, then chair of the FDIC, Mary Schapiro, former chair of the SEC, and Elizabeth Warren, then chair of a panel monitoring the 2008 TARP program.  Warren reflects on the lack of women in finance:

What is it about finance that makes women so scarce in the corner offices?  And why indeed were three women now the sheriffs of Wall Street?  I can’t answer for Sheila or Mary, but I do have a thought about why I had ended up in this position: I was an outsider.  I had never inhabited the cozy world of high finance, never played golf with a foursome of CEOs, never smoked cigars at the club.

If a woman trying to advance must “fit in”, she faces an uphill battle.  Most women look and act differently to men, and there’s not much they can do about that.  Some companies recognize this and have decided to train their employees about unconscious biases that tend to be based on pattern-recognition. Biases and assumptions about women and mothers are one of the reasons women in finance – and many other industries — still remain “stuck in the middle” of corporate hierarchies.

Being an “insider” is about more than just fitting in, however.  Warren describes a dinner she had with the former Treasury of the Secretary who gave her advice about how to be more effective in politics:

He [Larry Summers] teed it up this way: I had a choice.  I could be an insider or I could be an outsider.  Outsiders can say whatever they want.  But people on the inside don’t listen to them.  Insiders, however, get lots of access and a chance to push their ideas.  People — powerful people — listen to what they have to say.  But insiders also understand one unbreakable rule.  They don’t criticize other insiders.

Our point is this: As more women become senior managers, a ‘boys’ club’ is less literally about gender, and more about group-think.  After all, if the few strong women at the top can’t be critical of their peers, it means they’re unlikely to be advocates for dramatic change.  Its perfectly fine — and very laudable — for these top women to encourage and support other women.  They can do things like give advice, serve as a role model, mentor other women, and participate in their companies’ womens’ support groups.  Don’t get us wrong.  These are all very important things that we believe make a difference.  However, it’s much more difficult to criticize their companies’ recruitment, retention, and promotion policies even if that is where change really needs to happen.  Being critical and advocating really hard change typically means they’re speaking out against other insiders.  And insiders protect insiders.

We can’t fault executive women for this: self-preservation is a powerful, natural instinct.  Its probably one of the characteristics of these women that got them to the top, in the first place.  But it does mean that larger changes may, indeed, have to come from “outsiders”.

Fairygodboss is committed to improving the workplace for women. Join us in our effort by signing up at Fairygodboss.com and reviewing your employer.

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Silicon Valley’s Most Powerful Woman

Sheryl Sandberg - Fairygodboss

For the fourth year in a row, Facebook’s COO Sheryl Sandberg was voted by Forbes as 2015’s Most Powerful Woman in Technology. We love that Sheryl is getting so much recognition. Not only does she help run one of the world’s most influential companies, but she’s also a huge supporter of female empowerment in the workplace. Her best-selling book Lean In, released in 2013, points out that feminism has stalled and that men still run the world. Her insights about balancing life and career in the male-dominated tech industry is not only a great resource for women, but helped to bring this serious topic into mainstream media. Talk about at true girl boss!

Do you want to help support women like Sheryl does? Join Fairygodboss and please register and share your completely ANONYMOUS company opinions HERE so we can spark change in company work culture.

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Why Women Should Ask for More Incentive Pay!

A rising tide lifts all boats.  We all “know” that when a company does well, executive compensation rises.  Similarly, when a company performs poorly, executive pay is penalized.  When it comes to gender, however, things are not this straightforward.

A recent paper by the Federal Reserve Bank of New York studied the compensation of female and male executives with the following titles: Chairman, Vice Chairman, CEO, COO and Presidents.  The authors found that 93% of the difference between what men and women executives earn could be explained by the incentive portion of their compensation.  In other words, the cash bonuses, stock and options tied to reaching company performance tended to be larger portions of a male executive’s total compensation package.  But its not just that women get less incentive comp.  Even when she does receive these sorts of incentive payments, a female executive benefits far less than her male counterpart when their company performs well.  As this Bloomberg article puts in graphical terms, she only gets 1/10th the benefit a male executive does.  And the real stinger is that when a company performs badly, the female executive’s pay is hit almost 2x as much as the male exec.

Was this because women-led companies performed worse than male-led companies?  The authors looked at this possibility and found no real difference in performance by gender.  What they do suggest as possible reasons are the same anecdotes we tend to hear on the topic, i.e. weaker networks of support and advocates, and calcified pay gaps that start early and continue even into the C-suite.

To us, the silver lining of this study is that there’s an actionable “to do”.  If you’re one of the fortunate women who actually is in a position to receive incentive compensation, ask for it — and ask for a lot of it!   While its never easy to ask for more pay, its probably easier to do it if you tie your request to performance targets since this request will be, by definition, justified by something concrete.  Even if you’re not in the C-suite, you can ask for your bonus to be tied to the company or department’s performance.  While the study didn’t study other positions within a company, its probably not far-fetched to think this pay gap in incentive pay is prevalent for other job titles.

The full NY Fed study can be found here (Warning: its quite academic and dense.)

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