In the Workplace the 2012 Minnesota Census of Women in Corporate Leadership: How Minnesota’S Top 100 Public Companies Rank
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Select Comfort Corporation CEO and Director Shelly Ibach represents the critically important group of women leaders at Minnesota's largest public companies. Women Leaders IN THE WORKPLACE The 2012 Minnesota Census of Women in Corporate Leadership: How Minnesota’s Top 100 Public Companies Rank › Minnesota leads the nation in the percent of Fortune 500 company board seats held by women. Highlights: › Minnesota ranks first in the percentage of women executives. › The overall percentage of seats held by women corporate directors has not noticeably changed over the past five years. MINNesota CENSUS OF WOMEN IN Corporate LEADERSHIP About the Census The 2012 Minnesota Census of Women in Corporate Leader- ship examines the percentage of women in leadership roles at the 100 largest publicly held companies headquartered in Minnesota as ranked by 2012 net revenue in the Star Tribune 100: 21st Annual Report (May 2012) and the Minneapolis/ St. Paul Business Journal top 100 list (March 2012). The report is produced by St. Catherine University and is co-sponsored by the Min- nesota Women’s Economic Roundtable. MWER is the Minnesota representative to ION (InterOrganization Net- work), a national organization that advocates for women’s TABLE OF participation on corporate CONTENts boards and in top leadership 2 Executive Summary roles in business. 4 Women on Corporate Boards: Slow Progress ROSTERS: 6 Women Executive Officers: Role Models 12 Women Corporate 8 Why Women Matter: Top Executives Directors Offer Their Views 14 Women Executive 10 2012 Minnesota Census Honor Roll Officers ON THE COVER: Shelly Ibach, CEO and director, ›Special Distinction: MTS Systems, 16 Corporate Directors Select Comfort Corporation — Target, CyberOptics, Christopher & Banks and Executive one of the Minnesota Census' and Select Comfort Officers by 2012 “Special Distinction” companies. Three of its nine 18 Do the Math: The Rise of Women CFOs Company company directors are women, 20 Call to Action and Research References and five of the company's eight executive officers are women. Photo by Sara Rubinstein Methodology Data for the 2012 Minnesota Census were notification of any changes occurring consistent, the Census uses only those CHS, Inc. and Thrivent Financial for collected from company filings with the before the Census cutoff of June 30, individuals formally designated as Section Lutherans. Although the Securities and SEC, including proxy statements (DEF 2012. The company response rate was 16b executive officers in SEC filings. Exchange Commission (SEC) lists these 14A), annual reports (Form 10-K) and 62 percent. Changes that occurred in Excluded from the list of Minnesota as public companies with more than 500 current reports (Form 8-K). Accessed board membership, executive officer Census companies are closely held shareholders, they are not publicly traded online through EDGAR, the most recent appointments, company ownership companies, cooperatives and fraternal on a stock exchange. SEC filings through June 30, 2012, or bankruptcy filings after the period benefits organizations, and companies All reasonable steps have been taken were reviewed for data collection. Data covered by the June 30, 2012, filings are traded over the counter. Of Minnesota’s to verify the accuracy of the data. Any confirmation sheets were e-mailed or not reflected in this analysis. Fortune 500 companies, three companies remaining errors or omissions are the mailed to each company, requesting Criteria for inclusion in the “executive are not represented in the Minnesota sole responsibility of the researchers at verification of the information and officer” category vary by company. To be Census data sample: Land O’Lakes, St. Catherine University. MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2013 1 EXECUTIVE SUMMARY Pathways to Progress As women and minorities gain more education, political influence and economic clout, U.S. companies have a ready talent pipeline. By Joann Bangs, Ph.D. and Rebecca Hawthorne, Ph.D. St. Catherine University Rebecca Hawthorne, Ph.D. Joann Bangs, Ph.D. he face of public ›PROFESSIONAL reduced insolvency risk words of A.G. Lafley, former leadership in EXPERIENCE and better average growth. chairman, president and CEO T Minnesota and Women hold 51.4 percent of According to a recent study of Proctor & Gamble: “A diverse throughout the nation shifted managerial and professional jobs, of 2,360 companies globally organization will out-think, in 2012, reflecting the reality according to the Bureau of Labor over the past six years, “it out-innovate and out-perform of demographic changes — a Statistics. Yet women hold only would on average have been a homogeneous organization shrinking of the white male 14.5 percent of the corporate better to have invested in every time” (Branson, 2010, majority and a growing board seats and 17.4 percent of corporations with women on pg. 127). number of women and the executive officer positions in their management boards than minorities. Minnesota companies. in those without” (Credit Suisse Women on Boards: In contrast, the face of Research Institute, 2012, p. 3). Opportunities to corporate leadership remained ›ECONOMIC CLOUT Diversify overwhelmingly male and white. Women control 73 percent ›PUBLIC LEADERSHIP Publicly held Minnesota Women outnumber men of U.S. household spending For the first time in history, companies appointed 56 new in higher education. They’ve decisions (Rosen, 2012). women have stepped into 20 independent directors to ascended in the workforce. Corporate boards and executive percent of the seats in the U.S. corporate boards in 2012. Each They have more economic leadership teams with women Senate. And white men no appointment represented an clout, and their presence in top members gain valuable insight longer are the majority in the opportunity to diversify the leadership positively affects into consumer preferences. U.S. House of Representatives. face of the corporate leadership a company’s bottom line. What is at stake for Min- team by opening ranks to a Still, the state’s top 100 public ›CORPORATE nesota companies? Progress highly qualified woman. companies have not increased GOVERNANCE IMPACT and economic growth. When In 2012, 11 of the 56 their representation of women Women’s presence in the assessing a country’s economic (or 20 percent) of the new on their boards or in their boardroom has been connected future and potential, economists independent directors executive suites, according to to stronger corporate and identify ambivalence over appointed were women, an the 2012 Minnesota Census of social governance metrics, women’s roles as a critical increase of 10 percentage points Women in Corporate Leadership. higher returns on equity, factor blocking progress. In the over the previous year. Despite this increase, Consider the following: the net increase across all ›QUALIFICATIONS companies was negligible Women earn 60 percent of all due to company relocation master’s degrees, 50 percent CONSIDER THIS: and changes in the corporate of all medical and law degrees WOMEN EARN 60% OF ALL landscape in Minnesota. Shifts and 44 percent of all business in the companies represented degrees in the United States MASTER'S DEGREES, 50% OF ALL in the Census reveal that larger (Rosen, 2012). Companies that medical AND law DEGREES AND companies often leave and seek gender diversity tap into 44% OF ALL BUSINESS DEGREES IN smaller ones (which tend to the largest talent pool. have fewer opportunities for THE UNITED States. women) come on. 2 APRIL 2013 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP Percent OF Board Seats HELD BY WOMEN MINNESOTA 21.9% MINNESOTA (16/100) 14.5% COMPANIES WITH WOMEN AT NEW YORK METRO 19.3% THE TABLE (62/100) 19.0% 39% OHIO 19.1% No Women 31% Directors (26/53) 16.4% One Woman MASSACHUSETTS 18.9% Director 30% (9/100) 12.7% Two or More ALABAMA 18.8% Women (1/27) Directors 9.0% WISCONSIN 17.1% (7/50) 14.4% CALIFORNIA 17.0% (51/85) 16.0% Women held 14.5 percent of it beneficial that at least one the board seats of Minnesota’s person on the board knows the GEORGIA 17.0% (14/130) 10.4% 100 largest publicly held potential candidate.” companies in 2012. This PENNSYLVANIA 16.1% reflects the highest percentage Women Executive (7/100) 11.0% of seats held by women since Officers: Good News MICHIGAN 15.9% the study began in 2008, but an in a Challenging (19) 15.9% increase of only 0.3 percentage Economy 15.2% points over 2011. Women executive officers MARYLAND (5/80) 10.7% In hard numbers, women retained 17.4 percent of the 14.2% stepped into 12 of the 66 available executive officer FLORIDA (15/100) 9.1% available directorships at (Section 16b) positions in Minnesota companies in 2012. The number of company TEXAS 12.9% (49/97) 2012. Overall, these numbers positions decreased from 708 10.7% reflect a drop in the number positions in 2011 to 665 posi- TENNESSEE 11.1% of board seats, not a change tions in 2012, with women re- (8/62) 9.6% in the number of women ad- taining the same percentage of KANSAS CITY 4.0% vanced to corporate boards. positions despite the decrease. (3/34) 8.2% Most boards rely on tradi- Nine companies reported a net FORTUNE 500 tional nominating practices increase in women executive (497) 16.6% and tend to replicate them- officers in 2012 compared with S&P 1500 14.0% selves when selecting new eight companies in 2011. (1,485) directors. In the words of one RUSSELL 3000 11.7% nominating chair: “We find (2,865) 0% 5% 10% 15% 20% 25% FORTUNE 500 ALL compaNIES compaNIES IN POOL The numbers in parentheses refer to the number of companies in the Fortune 500, followed by the total number of companies tracked by the respective ION Sixty-four of the top 100 public companies in Minnesota have women member organization.