2007 Catalyst Annual Report Living Our Legacy 2007 Annual Report

Expanding opportunities for women and business

Founded in 1962, Catalyst is the leading nonprofit corporate membership research and advisory organization working globally with businesses and the professions to build inclusive workplaces and expand opportunities for women and business. With offices in New York, Sunnyvale, Toronto, and Zug, and the support and confidence of more than 350 leading corporations, firms, business schools, and associations, Catalyst is the premier resource for information and data about women in the workplace. In addition, Catalyst honors exemplary business initiatives that promote women’s leadership with the annual Catalyst Award.

Letter From the President and the Chair 1 Research 2 Events 5 Advisory Services 6 Membership 6 2007 Catalyst Awards Dinner and Conference 7 2007 Catalyst Awards Dinner Contributors 9 Special Project Funding 10 2007 Catalyst Donors and Catalyst Annual Giving Program 11 Catalyst Members 12 Financials and Notes to Consolidated Financial Statements 14 Catalyst Boards 16 Letter From the President and the Chair 1

Forty-five years ago, Catalyst began with a vision of a world that supports and encourages every woman in her career aspirations and places no limits on where her skills and energy can take her. This vision has become our legacy—and yours—and in 2007 we lived our legacy in ways that could not have been imagined in the days when a mere handful of women held leadership roles in business.

Together with you, our members, we have broadened the scope of our legacy. This year, our world-renowned research team produced two groundbreaking handbooks on LGBT inclusion, three reports on visible minorities in corporate Canada, and a report on women of color in accounting firms. We also released a provocative study on the double binds women in leadership face and a telling look at how the corporate bottom line is related to the number of women on a company’s board. These reports give our members tools to address fundamental issues that have often been ignored in the past.

The comprehensive scope of diversity and inclusion in 2007 was also reflected in the recipients of the 2007 Catalyst Award. From the attention to senior women at Goldman Sachs to the crafting of Scotiabank’s business case for advancing women, from the efforts to promote women of color at PepsiCo to PricewaterhouseCoopers’ recognition that unique employees have different needs, the winning initiatives epitomized the excellence and, yes, the diversity of corporate programs that Catalyst has encouraged throughout the years.

Producing pioneering research and honoring corporate initiatives will always be a major part of our work. But working closely with corporate leaders is how we gain the trust, knowledge, and networks that allow us to live our legacy.

The second successful Catalyst CEO Summit, attended by 21 CEOs and their top executives, focused on preparing leadership for tomorrow and showcased the synergies that emerge when leaders of major organizations convene to tackle an issue. We are harnessing this same energy with our newly formed Europe Advisory Board, whose prominent and engaged representatives are drawn from our European member organizations. In addition, our daily contact with our members—especially the growing number of global members—is a constant source of insight and learning.

Making change together with our members enables us at Catalyst to embrace our shared legacy as we look toward the future. It is our pleasure to be your partner in this effort.

Ilene H. Lang Charles O. Holliday, Jr. President Chairman and CEO, DuPont Catalyst Chair, Catalyst 2 Creating Our Legacy

Research

Catalyst research in 2007 focused on historically Strengthening the business case for women in top marginalized groups while also upholding our tradition of leadership, The Bottom Line: Corporate Performance providing accurate data on women in business leadership. and Women’s Representation on Boards, showed that, Two new Making Change booklets, LGBT Inclusion: on average, the companies with higher percentages of Understanding the Challenges and LGBT Inclusion: women board directors financially outperformed those Implementing Policies, Programs, and Practices, explained companies with the lowest percentages. This data was the terms and issues necessary to successfully include presented on the new Metrics section of our website, LGBT (lesbian, gay, bisexual, transgender) employees which also houses our annual surveys of women board in the workplace. We launched our Women of Color in directors, corporate officers, and top earners for both Professional Services Series with Retaining People of the and Canada. This year, these Censuses Color: What Accounting Firms Need to Know, a close look showed little change from previous years. The Metrics at the factors that push people of color to leave their jobs page is also home to the Catalyst Member Benchmarking at accounting firms. And our Toronto office published Report, which was released in a new format this year. three groundbreaking reports on the experiences of visible minorities—a Canadian legal term used to describe Rounding off our output for the year was a report that people who are non-Caucasion in race, non-white in has garnered significant attention in the press: The color, and not Aboriginal—in corporate Canada. The first Double-Bind Dilemma for Women in Leadership: Damned two of these reports were written in conjunction with if You Do, Doomed if You Don’t. This qualitative study The Diversity Institute in Management and Technology at uncovers the predicament women face as they climb the University. corporate ladder: that gender stereotyping leaves them with limited, conflicting, and often unfavorable options no matter what their leadership style.

Catalyst work was cited in national and international media throughout the year, proving that Catalyst is the organization journalists turn to for information about women and work. The following list is a sample.

January 30, 2007 February 28, 2007 April 5, 2007 May 29, 2007 Programs to Promote Big Canadian Companies How to Hammer the Glass Catalyst Launches Report Female Managers Win Risk Losing Talented Ceiling: Scotiabank Takes on LGBT Inclusion in the Citations Visible Minority Some Novel Approaches Workplace Employees to Help Get More Women Miami Herald/Gay South The Canadian Press to the Top Florida February 5, 2007 The Globe and Mail Unique Experience March 7, 2007 May 29, 2007 Tribune Most Prefer Male Bosses: April 22, 2007 Catalyst Looks to Change Stereotypes Intact How Diversity Makes a Attitudes Toward Lesbian, February 21, 2007 The Montreal Gazette Team Click Gay, Bisexual and Survey: Women in Top Transgender Employees Jobs Still Scarce March 7, 2007 The Globe and Mail Women in Corporate May 10, 2007 Picked up internationally America Still Lagging PepsiCo Has Helped Blaze June 26, 2007 by newspapers and Behind Men: Survey a Trail for Workplace Careers and Family Life websites, including the Agence France Presse Diversity Starting to Work Hand in , the Financial Times Hand in the United States Houston Chronicle, and Deutschland Les Echos the International Herald (French business daily) Tribune Creating Our Legacy 3

July 7, 2007 October 1, 2007 October 10, 2007 November 14, 2007 A Seat at the Table CNBC’s Closing Bell Deloitte Fine-Tunes Sales Should Hillary Pretend to Corporate Counsel CNBC Pitch for Women Be a Flight Attendant? The Wall Street Journal The New York Times August 12, 2007 October 1, 2007 Working Women Still Woman’s Touch Might October 30, 2007 November 20, 2007 Want What Many Men Bring Better Results Finance Work Holds Looking at Clinton, Seeing Have Financial Times Barriers for Women Themselves Taipei Times Marketplace (NPR) WSJ.com/The Wall Street October 1, 2007 Journal September 18, 2007 Women Directors Help November, 2007 US Cities Buck Gender Pay Boost the Bottom Line An Exemplary Woman November 25, 2007 Trends Planéte Veolia More Women, More Ideas BBC News (French magazine) Mittelland Zeitung October 2, 2007 Sonntag October 1, 2007 Women in the Boardroom November 1, 2007 (Swiss newspaper) Fortune 500 Companies Yield Significantly Better The Feminine Critique With More Women Output The New York Times on the Boards Achieve Het Financieel Dagblad Significantly Better (Dutch financial Financial Performance newspaper) Than Those With Male- Dominated Boardrooms Management-Issues Magazine 4 Creating Our Legacy

Our Speakers Bureau has been called upon to provide knowledgeable speakers and panelists for a variety of events around the world on a wide range of topics related to women and business. The following list is a sample.

February 7-10, 2007 March 8, 2007 April 30, 2007 October 4, 2007 Black Enterprise Women of International Monetary Harvard Business School— Making the Business Case Power Summit Fund—International The Women’s Leadership for Gender Diversity Phoenix, Ariz. Women’s Day Seminar Forum Budapest Katherine Giscombe, Ph.D. Washington, D.C. Boston Ilene H. Lang Vice President, Jan Combopiano Ilene H. Lang President Women of Color Research Vice President, President Chief Knowledge Officer October 5, 2007 May 23, 2007 National Society of Hispanic EEOC—Work/Family Best MBAs (NSHMBA)—National Practices for Women of Conference & Career Expo Color Houston Washington, D.C. Katherine Giscombe, Ph.D. Anika Warren, Ph.D. Vice President, Director, Research Women of Color Research

June 6, 2007 October 9, 2007 Canadian Nuclear Society TOTAL S.A.—Diversity In All Conference Its Diversity Conference Saint John, NB Paris Deborah Gillis Eleanor Tabi Haller-Jorden Executive Director, General Manager, Catalyst Canada Inc. Catalyst Europe AG

September 3, 2007 October 25, 2007 Swiss GE—Women’s 2007 Women In Defense Network Annual Meeting National Fall Conference Zurich Arlington, Va. Eleanor Tabi Haller-Jorden Ilene H. Lang General Manager, President Catalyst Europe AG Eleanor Tabi Haller-Jorden sits on a panel in Milan at the November 5, 2007 Fondazione Bellisario & Il Sole 24 Ore Women’s Forum. September 19, 2007 Woman Capital—Women’s Forbes Executive Women’s Platform Symposium Forum Amsterdam February 16, 2007 March 9, 2007 Washington, D.C. Ilene H. Lang Toronto Board of Trade— Richard Ivey School of Ilene H. Lang President Empowering Women Business—Ivey Conference President Forum on Workplace Diversity December 4, 2007 Toronto Toronto September 27-29, 2007 American Conference Deborah Gillis Deborah Gillis W.I.N. Forum Institute (ACI)—Retaining Executive Director, Executive Director, Oslo & Developing Female Catalyst Canada Inc. Catalyst Canada Inc. Eleanor Tabi Haller-Jorden Attorneys Conference General Manager, San Francisco February 26, 2007 Catalyst Europe Brande Stellings Fondazione Bellisario & April 10, 2007 Senior Director, Il Sole 24 Ore Women’s Microsoft—Enterprise CIO September 28, 2007 Advisory Services Forum Summit Massachusetts Hospital Milan Redmond, Wash. Association—6th Annual Eleanor Tabi Haller-Jorden Ilene H. Lang Executive Women in General Manager, President Healthcare Conference Catalyst Europe AG Framingham, Mass. Lisa Levey Senior Director, Advisory Services Sharing Our Legacy 5

Events Sharing our knowledge with members is an integral part More formal events have been held by all of our offices. In of our mission. Our biggest event of the year is always the August, the New York office brought together a group of Catalyst Awards Conference and Dinner. But the smaller, LGBT women and men for a thought partnership meeting more intimate events we hold throughout the year allow on LGBT inclusion in the workplace. These conversations us to connect with our members individually. In particular, will guide our research in this area. In October, we we proudly hosted 21 CEOs and their top executives at released The Bottom Line: Corporate Performance and the second Catalyst CEO Summit on December 13 at The Women’s Representation on Boards at a breakfast event Ritz Carlton, San Francisco. This elite group brought their at the Harvard Club in sponsored by The enthusiasm and creativity to brainstorming new ways to Chubb Corporation. More than 50 people attended to use workplace trends to benefit women. hear a panel comprising Karen Katen, Chairman, Pfizer Foundation; Vikki L. Pryor, President & CEO, SBLI USA The same level of passion was evident from those who Mutual Life Insurance Co., Inc; and Al Zollar, General attended our newest type of event: Casual Conversations— Manager, Tivoli Software, IBM Software Group, speak informal, one-hour discussions of diversity and inclusion about the correlation between women on boards and issues and Catalyst research. The New York office held two corporate financial performance. in person. • The Double-Bind Dilemma for Women in Leadership: On June 14, our Western Region office held “Changing Damned if You Do, Doomed if You Don’t, July 18 Realities: Building a More Agile Workplace,” sponsored by • Retaining People of Color: What Accounting Firms Bright Horizons Family Solutions and Morrison & Foerster Need to Know, September 6 LLP, to discuss the findings from our 2006 report on parental concerns about after-school childcare. The Western Region office held eight virtually. • Maximizing Use of Benchmarking, January 9 The Toronto office held two events in April—a celebration • Ensuring a Winning Diversity Strategy, February 13 of the release of the 2006 Catalyst Census of Women • Inspiring and Guiding Managers as Diversity Corporate Officers and Top Earners of the FP500 in Canada Champions, March 7 at the Verity Club, sponsored by McCarthy Tétrault; and a workshop entitled Creating an Award-Winning Diversity • Spotlight on LGBT Inclusion, June 26 Initiative, sponsored by Ernst & Young LLP Canada, which • Embedding Flexibility into the Workplace, Part One, featured a speaker from Scotiabank, Canada’s 2007 July 17 Catalyst Award winner. Career Advancement in Corporate • The Double-Bind Dilemma for Women in Leadership: Canada: A Focus on Visible Minorities ~ Survey Findings was Damned if You Do, Doomed if You Don’t, August 14 unveiled on June 28 at an event hosted by RBC Financial • Embedding Flexibility into the Workplace, Part Two, Group. Preliminary findings were released in February September 25 at an event hosted by The Diversity Institute at Ryerson • Employee Networks: Overcoming Common University. Challenges, October 23 Two webinars exemplify how our Europe office has already Our Toronto office held four Casual Conversations. created value for members. The first, held on July 20, was • Flexible Work Arrangements in Professional Service sponsored by Sodexo and gathered diversity and inclusion Firms, May 1, sponsored by the Rotman School of practitioners to discuss “The D&I Business Case.” The Management, University of Toronto second, sponsored by ABN AMRO, was held on September • Flexibility in Professional Services Firms: PwC’s 2007 25 and featured a conversation about “Why Build Inclusive Catalyst Award-Winning Initiative, July 23, sponsored Corporate Cultures?” Finally, at the largest-attended by PricewaterhouseCoopers LLP Canada 2007 event of the Zurich Professional Women’s Group, • The Bottom Line: Corporate Performance and Catalyst Europe launched its “Bring Your Own Boss” series Women’s Representation on Boards, October 3 on November 20. The interactive dialogue—designed to • The Double-Bind Dilemma for Women in Leadership: include managers in the discussion—focused on work, Damned if You Do, Doomed if You Don’t, November gender stereotyping, and leadership styles and was based 7, sponsored by Bell on The Double-Bind Dilemma for Women in Leadership: Damned if You Do, Doomed if You Don’t. 6 Collaborating on Our Legacy

Advisory Services Membership With Catalyst’s increasingly global membership, Advisory Our member network is our extended family—we support Services has extended our mission further around the world one another and share in progress toward mutual goals. with a more explicit focus on strategic planning. This year, This year, our family grew to more than 350 members. In we partnered with clients to build their internal capacity particular, 29 organizations took advantage of our new to increase business success by designing and driving global membership package, giving them access to Catalyst change. We fine-tuned two highly successful services: resources in the United States, Canada, and Europe. With Diagnostic Days and Strategic Planning Workshops. We today’s global business environment, we expect this option also continued to serve as strategic advisors to member to grow in popularity over the years to come. companies, conducting targeted assessments and synthesizing data sources to define strategic areas of Two events showcased our close partnerships with focus. Our services include continued support during the members. At the Catalyst-Cisco CEO RoundTable Dinner, on planning and implementation phases of strategic diversity June 5 at Cisco Systems, Inc., in San Jose, Calif., chairmen initiatives and encompass strategic planning of network and CEOs from ten companies participated in an informal and work-life activities, scorecard and metrics design, discussion that focused on the factors impacting women’s policy and practice review, and communications guidance. advancement and the role of senior leadership, especially We also presented our Work-Life Quality and Effectiveness the CEO, in fostering change. Also, on August 14, American workshop to global clients from diverse industries. Express Company hosted “Getting Women Into Line Positions” in New York City, a cross-gender dialogue on We served more than 25 clients in 2007, from North the barriers women face advancing into line positions and America, Europe, and other parts of the world, and in a what organizations can do to break them down. broad range of industries, including law, financial services, consulting, accounting, heavy industrials, construction, oil and gas, consumer products, and . In Europe, we advised several government agencies and ministries, as well as the European Commission. Many of our clients have received external recognition as leading workplaces for women. Public clients include Reed Smith, The Dow Chemical Company, and UBS.

Deborah Gillis presents findings from the 2007 Catalyst Census of Women Corporate Officers and Top Earners of the FP 500. Celebrating Our Legacy 7

2007 Catalyst Awards Dinner and Conference

and arranging conferences and networking events, among other activities. In her acceptance speech, Indra Nooyi, President and CEO, noted, “We all have a profound responsibility to promote equality.”

PricewaterhouseCoopers LLP’s initiative, Unique People Experience, has reduced turnover, maximized staff productivity, and increased value for clients by emphasizing the differences among its employees that make them a diverse and talented group. Dennis Nally, U.S. Chairman and Senior Partner, said, “At PwC we’re committed to make our firm a great place to work for all.”

Unlocking Potential, Delivering Results: The Advancement Catherine A. Lamboley (back row, center), SVP, General Counsel of Women Initiative at Scotiabank ensures transparency & Corporate Secretary, Shell Oil Company, Dinner Sponsor, surrounded by Award-winning CEOs: (From left) Dennis Nally, and accountability within advancement processes and Indra Nooyi, Richard E. Waugh, Lloyd C. Blankfein (Front row) connects and develops women. Richard E. Waugh, Charles O. Holliday, Jr., Ilene H. Lang, and Tony Comper. President and CEO, said the initiative was important to the company because “the advancement of women represents On Wednesday, March 21, 2007, more than 1,600 guests, for us a global priority.” including 60 CEOs, joined Catalyst at the Waldorf=Astoria in New York for the 20th annual Catalyst Awards Dinner Catalyst’s 2007 Awards Conference, Innovative Strategies, honoring Award-winning organizational initiatives to Winning Results, held earlier in the day, showcased the advance women. This year’s winning initiatives hailed 2007 Catalyst Award-winning initiatives. More than 550 from The Goldman Sachs Group, Inc., PepsiCo, Inc., attendees learned about the groundbreaking initiatives PricewaterhouseCoopers LLP, and Scotiabank. and participated in sessions on performance management, work-life issues, global issues, and women of color. At To kick off the dinner, which was sponsored by Shell Oil lunch, Keynote Speaker Karen Katen, Chairman, Pfizer Company, Tony Comper, Former President and CEO of Foundation, told the audience that a woman’s journey to BMO Financial Group and Dinner Chair, challenged guests the top is “never solo” and suggested seeking out “insight to create a new playing field that would enable gender and advice from...smart, experienced people around you.” parity. Catalyst President Ilene H. Lang followed, tracing Held at the Grand in New York, the Conference was women’s advancement over the last 40 years—and looking sponsored by General Motors Corporation and Wal-Mart ahead to the next 40. Stores, Inc.

Catalyst Board Chair Charles O. Holliday, Jr., then presented the Catalyst Award to the leaders of the four Award- To celebrate the legacy of the Catalyst Award, we winning organizations. At The Goldman Sachs Group, Inc., Securing Talent and Excellence in the Pipeline: The Senior published the Catalyst 20th Anniversary Awards Women’s Initiative, anchored by the Senior Women’s Compendium, a collection of the 64 practices that Review, supports women and works to eliminate barriers were honored with the Catalyst Award from 1987 to their promotion to partnership. Accepting on his through 2007. This toolkit for diversity and inclusion company’s behalf, Lloyd C. Blankfein, Chairman and CEO, experts details cutting-edge strategic approaches commented, “Our firm must represent in a meaningful to advancing women and showcases the strategies way the full spectrum of diversity.” of winning organizations. The hard-bound volume provides the knowledge and tools to effect meaningful Women of Color Multicultural Alliance at PepsiCo, progress in advancing women and furthering diversity Inc., attracts, retains, and promotes women of color at and inclusion; it also establishes a benchmark for the middle and senior ranks by facilitating authentic progressive organizations everywhere. dialogues between women of color and their managers 8 Partnering for Our Legacy

Catalyst’s partners in the greater business world strengthen Our office in Zug, Switzerland, celebrated its first our networks and our knowledge base. In 2007 we proudly anniversary this year and has been busy establishing itself announced our new “sister” relationship with J-Win, the as the premier resource for information on diversity and Japan Women’s Innovative Network, an independent inclusion in Europe. Chief among its achievements was the nonprofit based in Tokyo. As sister organizations, J-Win founding of the Catalyst Europe Advisory Board, which and Catalyst share knowledge about the advancement now comprises 18 influential and enthusiastic executives of women in the workplace in Japan and globally, with from many of our member companies based in Europe. J-Win taking on responsibility for the Japanese translation Their insights and guidance will play a leading role in the of select Catalyst reports. In addition, J-Win members development and growth of this office. are invited to participate in the Catalyst Benchmarking Service and other future research projects. The results of In other news, the Canada Advisory Board bid farewell to this research will provide J-Win and Catalyst members with Tony Comper as its first Chair when he retired from the helm more insights into diversity and inclusion as it is practiced of BMO Financial Group. Richard E. Waugh, President and in more areas around the world. CEO of Scotiabank, has taken over with enthusiasm and imagination. We look forward to many years of progress under his leadership. Supporting Our Legacy 9

2007 Catalyst Awards Dinner Contributors

$100,000+ Arrow Electronics, Inc. $10,000-$19,999 Wachovia Corporation BMO Financial Group Automatic Data Altria Group, Inc. Western & Southern Shell Oil Company Processing, Inc. ATCO Ltd. Financial Group Avon Products, Inc. Bayer Corporation Weyerhaeuser Company $50,000-$99,999 The Bank of New York BDO Seidman, LLP The Williams Foundation American Express Company, Inc. Bechtel Corporation Company Barclays Global Bloomberg L.P. $1,000-$9,999 BP p.l.c. Investors Bristol-Myers Squibb AMP Limited The Chubb Corporation Best Buy Co., Inc. Company ANZ The Coca-Cola Company Bingham McCutchen LLP Bryan Cave LLP Babson College Dell Inc. The Company C. R. Bard, Inc. Bausch & Lomb Incorporated DuPont Booz Allen Hamilton Cadwalader, BDO Dunwoody LLP Ernst & Young LLP Cardinal Health Wickersham & Taft LLP BE&K, Inc. General Motors Corporation Cisco Systems, Inc. Campbell Soup Company Borden Ladner Gervais LLP The Goldman Sachs Group, Comcast Corporation Colgate-Palmolive Company CAE Inc. Inc. ConAgra Foods, Inc. Credit Suisse Group Capgemini McDonald's Corporation Deloitte & Touche LLP Dow Jones & Company, Inc. Curtis L. Carlson Family Morgan Stanley Deutsche Bank AG Eastman Kodak Company Foundation Pfizer Inc The Dow Chemical EDS DraftFCB PricewaterhouseCoopers LLP Company Eli Lilly and Company EnCana Corporation Texas Instruments Fluor Corporation Enterprise Rent-A-Car FPL Group, Inc. Incorporated Hearst Corporation Gannett Co., Inc. Fraser Milner Casgrain LLP UPS Heidrick & Struggles Gap Inc. Goodwin Procter LLP International, Inc. Georgia-Pacific LLC Insurance Group $35,000-$49,999 Humana Inc. Grant Thornton LLP Intel Corporation Akin Gump Strauss Hauer & IBM Corporation Hewlett-Packard Company International Paper Feld LLP KeyBank HSBC Holdings plc InterTech Media, LLC Alcoa Inc. Kimberly-Clark Interpublic Group ITT Corporation Corporation Corporation JPMorgan Chase & Co. KPMG LLP Canada Bank of America Kraft Foods Inc. Kaye Scholer LLP Limited , Inc. Corporation Lehman Brothers Lowe's Companies, Inc. Lockheed Martin Bell Canada Enterprises Marsh & McLennan Marriott International, Inc. Corporation Chevron Corporation Companies, Inc. McCarter & English, LLP Maersk, Inc. General Electric Company MasterCard Worldwide McKinsey & Company Onex Corporation GMAC Financial Services Microsoft Corporation Morrison & Foerster LLP Owens & Minor, Inc. , Inc. Office Depot, Inc. New York Life Reed Smith LLP ING Groep N.V. O'Melveny & Myers LLP Insurance Company Rock-Tenn Company J. C. Penney Company, Inc. RBC Financial Group The Pepsi Bottling Group Rolls Royce North America KPMG LLP Pillsbury Winthrop Shaw Safeway Inc. Orrick, Herrington & Scotiabank Pittman LLP SBLI USA Mutual Life Sutcliffe LLP Sodexo, Inc. Prudential Financial, Inc. Insurance Company, Inc. PepsiCo, Inc. Insurance RR Donnelley Holdings Corporation Pitney Bowes Inc Companies Schering-Plough Corporation Skadden, Arps, Slate, Raytheon Company Sullivan & Cromwell LLP LLP Meagher & Flom LLP Toyota Tyco International, Ltd. Society for Human Spencer Stuart Weil, Gotshal & Manges LLP UBS AG Resource Management Starcom MediaVest Group Unisys Corporation Softchoice Corporation Towers Perrin $20,000-$34,999 Wal-Mart Stores, Inc. Starwood Hotels & Resorts TransCanada Pipelines ABN AMRO Incorporated Worldwide, Inc. Limited American International Wyeth Sunoco, Inc. USG Corporation Group, Inc. Xerox Corporation TD Bank Financial Group Williams ARAMARK The Thomson Corporation The Wyatt Family Vinson & Elkins LLP Foundation 10 Supporting Our Legacy

Special Project Funding UNITED STATES EUROPE Changing Realities: Building a Getting Women Into Line RESEARCH C-Cubed Newsletter More Agile Workplace Positions 2007 Catalyst Member April 2007-March 2008 San Francisco, June 14, 2007 New York City, August 14, 2007 Benchmarking Report Sponsor: ING Group Sponsors: Bright Horizons Host: American Express Lead Sponsor: McDonald’s Family Solutions; Morrison & Company Corporation Foerster LLP 2007 CATALYST AWARDS Release of The Bottom Line: Contributing Sponsor: The Release of Career Advancement Corporate Performance and Allstate Corporation CONFERENCE in Corporate Canada: A Focus Women’s Representation on Sponsors: General Motors on Visible Minorities~Survey Boards The Bottom Line: Corporate Corporation; Wal-Mart Stores, Findings New York City, October 1, 2007 Performance and Women’s Inc. Representation on Boards Toronto, June 28, 2007 Sponsor: The Chubb Sponsor: The Chubb 2007 CATALYST AWARDS Sponsor: RBC Financial Group Corporation Corporation DINNER Webinar: The D&I Business Case Casual Conversation: The Double- Catalyst 20th Anniversary Awards Sponsor: Shell Oil Company Zurich, July 20, 2007 Bind Dilemma for Women in Compendium Sponsor: Sodexo Leadership: Damned if You Do, 2007 CATALYST CEO Doomed if You Don’t. Sponsor: Tony Comper/BMO SUMMIT Casual Conversation: Flexibility Financial Group Toronto, November 7, 2007 Sponsors: DuPont; Ernst & in Professional Services Firms— Sponsor: Bell The Double-Bind Dilemma for Young LLP PricewaterhouseCoopers’ Award- Women in Leadership: Damned if Winning Initiative Webinar: Why Build Inclusive You Do, Doomed if You Don’t Toronto, July 23, 2007 Corporate Cultures? Sponsor: IBM Corporation OTHER EVENTS Sponsor: Zurich, September 25, 2007 Release of Career Advancement PricewaterhouseCoopers LLP Sponsor: ABN AMRO Making Change: LGBT Inclusion— in Corporate Canada: A Focus Canada Implementing Policies, Programs, on Visible Minorities~An Early and Practices Preview Sponsor: Raytheon Company Toronto, February 28, 2007 Sponsor: The Diversity Institute Making Change: LGBT Inclusion— in Management and Technology, Understanding the Challenges Ryerson University Sponsor: IBM Corporation Release of 2006 Catalyst Census of Women Corporate Officers and CANADA RESEARCH Top Earners of the FP500 2006 Catalyst Census of Women Toronto, April 4, 2007 Corporate Officers and Top Sponsor: McCarthy Tétrault Earners of the FP500 Creating an Award-Winning Lead Sponsor: American Diversity Initiative: Understanding Express Canada the Criteria Necessary to Make Participating Sponsors: INCO Change Limited; Linamar Corporation; McKinsey & Co. Toronto, April 26, 2007 Sponsor: Ernst &Young LLP Career Advancement in Corporate Canada Canada: A Focus on Visible Minorities~An Early Preview Casual Conversation: Flexible Work Arrangements in Career Advancement in Corporate Professional Service Firms Canada: A Focus on Visible Toronto, May 1, 2007 Minorities~Survey Findings Sponsor: Rotman School of Management Career Advancement in Corporate Canada: A Focus on Visible Catalyst-Cisco CEO RoundTable Minorities~Critical Relationships Dinner Lead Sponsor: RBC Financial San Jose, Calif., June 5, 2007 Group Host: Cisco Systems, Inc. Participating Sponsors: Deloitte & Touche; IBM Canada Supporting Sponsor: Ontario Ministry of Citizenship and Immigration Supporting Our Legacy 11

2007 Catalyst Donors* (In Addition to Dinner Contributions)

Catalyst Gold Deloitte & Touche (Canada) Chevron Corporation Pillsbury Winthrop Shaw ($100,000+) Dickstein Shapiro LLP Citizens Communications Pittman LLP IBM Corporation Colgate-Palmolive Company Pitney Bowes Inc. Debevoise & Plimpton LLP McDonald’s Corporation Exxon Mobil Corporation PricewaterhouseCoopers LLP Deloitte & Touche USA LLP NYSE General Electric Company Raytheon Company DuPont Ontario Ministry of Citizenship General Mills, Inc. Sara Lee Corporation Ernst & Young LLP and Immigration JPMorgan Chase & Co. Sears Holdings Corporation Fannie Mae The Procter & Gamble Company KPMG LLP US Starcom MediaVest Group General Motors Corporation Scotiabank The Kroger Co. Texas Instruments Incorporated The Goldman Sachs Group, Inc. Seagate Technology Merrill Lynch & Co., Inc. Xerox Corporation Lehman Brothers Inc. UPS Microsoft Corporation RBC Financial Group Wal-Mart Stores, Inc Morgan Stanley *Includes Pro Bono and Gifts in Shell Oil Company Pfizer Inc Kind Catalyst Silver Catalyst Bronze ($50,000-$99,999) ($25,000-$49,000) ARAMARK The Allstate Corporation Avon Products, Inc. The Chubb Corporation Catalyst Annual Giving Program BMO Financial Group Credit Suisse Group BP p.l.c. In 2007, we inaugurated the Catalyst Annual Giving Program as a Dell Inc. Carlson Companies, Inc. way for individuals to make personal donations to Catalyst. We rely on these funds as a resource to perpetuate our world-class talent base, exceptional research opportunities, and unique programs. The following generous individuals gave to Catalyst in 2007.

$50,000+ Mary Frances Pearson Thomas J. Engibous Stephanie and Ed Streeter Rick Wagoner $20,000-$49,999 Claire Watts Melinda M. White James H. Quigley

$10,000-$19,999 $1-$999 Anonymous (1) James Dimon Brenda C. Barnes Karen Katen Laura Bartlett Denise Baumbach $5,000-$9,999 Cathleen Benko Susan E. Arnold Kalindi S. Bhatt Laurie A. Gabriel Anne L. Burr Chad Holliday Nancy M. Carter, Ph.D. Ilene H. Lang Allison M. Cerra James S. Turley Angela J. Christian Monica E. Emerson $1,000-$4,999 Teresa Finley Anonymous (1) Nancy Glaser DeAnne M. Aguirre Hilary E. Glassman AOL Rojon D. Hasker Citizens Communications Ron Kirk Mary B. Cranston Peggy Klaus Michael J. Critelli Marcia Brumit Kropf David and Dee Dillon Cecilia K. McKenney Jan Fields Rebecca Rohr Mary Beth Hogan Brigid M. Smith Clyde Jones Samantha Soon Lois D. Juliber Brande Stellings Andrea Jung Patricia C. Stewart Jeanne M. Kane Linda R. Taylor Catherine A. Lamboley Jill A. Wagner Maureen A. McGuire Carole S. Watkins Occidental Petroleum Anne Weisberg Louise M. Parent Randy White 12 Supporting Our Legacy

Catalyst Members

GLOBAL Applied Materials, Inc. CVS/Caremark Corporation Kellogg Company Accenture ARAMARK DaimlerChrysler KeyCorp Alcatel-Lucent Archer Daniels Midland Corporation Kimberly-Clark Corporation Altria Group, Inc. Company DaimlerChrysler Financial Kirkland & Ellis LLP American Express Company Arnold & Porter LLP Services Americas Kirkpatrick & Lockhart Preston Aon Corporation Arrow Electronics, Inc. Debevoise & Plimpton LLP Gates Ellis LLP AstraZeneca PLC AT&T Inc. Dell Inc. Kohlberg Kravis Roberts & Co. Barclays PLC Automatic Data Processing, Delta Air Lines, Inc. The Kroger Co. Cardinal Health, Inc. Inc. Dewey & LeBoeuf Latham & Watkins Chevron Corporation Avon Products, Inc. Dickstein Shapiro LLP Lear Corporation Cisco Systems, Inc. Babson College Dow Jones & Company, Inc. Lehman Brothers Inc. Credit Suisse Group Baker & McKenzie DraftFCB Levi Strauss & Co. Baker Hughes Incorporated Duke Energy Corporation Limited Brands, Inc. Deloitte & Touche LLP Bank of America Corporation DuPont Lockheed Martin The Dow Chemical Company The Bank of New York Mellon Eastman Chemical Company Corporation Ernst & Young LLP Corporation Eastman Kodak Company Lowe's Companies, Inc. Exxon Mobil Corporation Barclays Global Investors eBay Inc. Macy's The Goldman Sachs Group, Battelle Electronic Data Systems Maersk, Inc. Inc. Bausch & Lomb Incorporated Corporation Manpower Inc. HSBC Holdings plc Inc. Eli Lilly and Company Marriott International, Inc. IBM Corporation BDO Seidman, LLP Enterprise Rent-A-Car Mars, Incorporated ING Groep N.V. Bechtel Corporation Company Marsh & McLennan Companies, JPMorgan Chase & Co. Best Buy Co., Inc. Fannie Mae Inc. Kraft Foods Inc. Bingham McCutchen LLP Fluor Corporation MasterCard Worldwide Mattel, Inc. Biogen Idec, Inc. Fortune Brands, Inc. McCarter & English, LLP McDonald’s Corporation Bloomberg L.P. Fulbright & Jaworski, L.L.P. The McGraw-Hill Companies, Microsoft Corporation Boehringer-Ingelheim Gap Inc. Inc. NIKE, Inc. Pharmaceuticals Gartner, Inc. McKinsey & Company PricewaterhouseCoopers LLP The Boeing Company Genentech, Inc. MeadWestvaco Corporation The Procter & Gamble Booz Allen Hamilton Inc. General Electric Company Medtronic, Inc. Company The Boston Consulting Group, General Mills, Inc. Mellon Financial Corporation Reuters Inc. General Motors Corporation Merck & Co., Inc. SAP AG Boston Scientific Corporation Gensler Merrill Lynch & Co., Inc. Schlumberger Limited Bristol-Myers Squibb Company Genworth Financial, Inc. Metropolitan Life Insurance Shell Oil Company C. R. Bard, Inc. Georgia-Pacific LLC Company Sodexo, Inc. Campbell Soup Company Goodwin Procter LLP The MITRE Corporation Stryker Capgemini The Goodyear Tire & Rubber Monsanto Company Unilever Capital One Financial Company Moody's Corporation United Technologies Corporation Google Morgan Stanley Corporation Cargill, Incorporated Grant Thornton LLP Morrison & Foerster LLP Verizon Communications Inc. Carlson Companies, Inc. Harley-Davidson, Inc. , Inc. Whirlpool Corporation Caterpillar Inc. Health Net, Inc. The Mutual of Omaha CB Richard Ellis Group, Inc. The Hearst Corporation Companies The Chubb Corporation Herman Miller, Inc. Newell Rubbermaid Inc. UNITED STATES Cintas Corporation Hewlett-Packard Company Nissan North America, Inc. 3M Company CIT Group Inc. Holland & Knight LLP Norfolk Southern Corporation Adobe Systems Incorporated Citigroup Inc. The Home Depot, Inc. Corporation Advanced Micro Devices, Inc. Citizens Communications Howrey Northrop Grumman Aetna Inc. The Coca-Cola Company Humana Inc. Corporation Alcoa Inc. Colgate-Palmolive Company Intel Corporation The Northwestern Mutual Life The Allstate Corporation Comcast Corporation International Paper Company Insurance Company Ambac Financial Group ConAgra Foods, Inc. Interpublic Group of O'Melveny & Myers LLP American International Group, Consolidated Edison, Inc. Companies Panasonic Corporation of Inc. Consumers Energy Intuit Inc. North America American Standard Companies Convergys Corporation ITT Corporation Paul, Hastings, Janofsky & Inc. Corn Products International, J. C. Penney Company, Inc. Walker LLP Amgen Inc. Inc. Johnson & Johnson The Pepsi Bottling Group Andrews Kurth LLP Corning Incorporated Jones Lang LaSalle PepsiCo, Inc. Anheuser-Busch Companies, Cowen Group, Inc Incorporated Perot Systems Corporation Inc. Supporting Our Legacy 13

Pfizer Inc UPS PHH Corporation USG Corporation Pillsbury Winthrop Shaw The Vanguard Group, Inc. Pittman LLP Vinson & Elkins L.L.P. Pitney Bowes Inc. Wachovia Corporation The PNC Financial Services Wachtell, Lipton, Rosen & Katz Group, Inc. Wal-Mart Stores, Inc. PPG Industries, Inc. Warner, Norcross & Judd LLP Prudential Financial, Inc. Weil, Gotshal & Manges LLP Raytheon Company Wells Fargo & Company Reed Smith LLP Weyerhaeuser Company Rockwell Automation, Inc. The Williams Capital Group, Rockwell Collins, Inc. L.P. Rohm and Haas Company WilmerHale RSM McGladrey, Inc. Wilson Sonsini Goodrich & Safeway Inc. Rosati Sanford C. Bernstein & Co., Women's Foodservice Forum LLC Wyeth Sara Lee Corporation Xerox Corporation Schering-Plough Corporation Yum! Brands, Inc. Seagate Technology Holdings Anika Warren, Ph.D., and Deepali Bagati, Ph.D., led a workshop Sears Holdings Corporation CANADA entitled Cultural Contexts in Global Organizations: Women of BC Hydro The Shaw Group Inc. Color at the 2007 Catalyst Awards Conference. BDO Dunwoody LLP Shawmut Design & Bell Canada Construction Blake, Cassels & Graydon LLP Sidley Austin LLP McInnes Cooper BP p.l.c. BMO Financial Group Simpson Thacher & Bartlett McKinsey & Company Bristol-Myers Squibb Company Bombardier LLP Mercer (Canada) Limited Deutsche Bank AG Borden Ladner Gervais LLP Skadden, Arps, Slate, National Bank of Canada European Space Agency Bruce Power LP Meagher & Flom LLP Nortel Networks Limited GlaxoSmithKline plc Campbell's Company of Sonnenschein Nath & NOVA Chemicals Corporation General Motors Corporation Canada Rosenthal Onex Corporation Europe Capgemini Canada Southern Company Pepsi Bottling Group Canada INSEAD Cascades Inc. Sprint Nextel Corporation RBC Financial Group Inter IKEA Systems B.V. Chubb Insurance Company of Starcom MediaVest Group Rio Tinto Alcan Lehman Brothers Europe Canada Starwood Hotels & Resorts Rogers Communications Inc. Manpower Inc. CIBC Worldwide, Inc. Rotman School of Nokia Corporation CVRD Inco Limited State Farm Companies Management Novartis AG Desjardins Group Studley Inc. Scotiabank Novo Nordisk A/S EDS Canada Inc. Sullivan & Cromwell LLP Inc. Reykjavik University Enbridge Inc. Sun Life Financial Sobeys Inc. Rolls-Royce plc Fasken Martineau DuMoulin Sun Microsystems, Inc. Stewart McKelvey Swiss Reinsurance Company LLP Sunoco, Inc. Sun Life Assurance Company Tetra Pak International S.A. Ford Motor Company of Symantec Corporation of Canada Texas Instruments Europe Canada, Limited Symcor Inc. Total S.A. Fraser Milner Casgrain LLP Terex Corporation TD Bank Financial Group UBS AG Gowling Lafleur Henderson Texas Instruments TELUS Corporation LLP Incorporated Torys LLP Grant Thornton LLP in Canada ASIA TIAA-CREF TransAlta Corporation The Home Depot Canada Infosys Time Warner Inc. TransCanada Pipelines Limited Investors Group Inc. Toyota Motor North America, TSX Group Inc. Irving Oil Limited Inc. Wal-Mart Canada Corporation Lafarge Canada Inc. Tyco International, Ltd. Xstrata Nickel Linamar Corporation Tyson Foods, Inc. Manitoba Telecom Services Inc. Underwriters Laboratories Inc. Manulife Financial EUROPE Unisys Corporation Corporation ABN AMRO Bank N.V. UnitedHealth Group McCarthy Tétrault LLP Barry Callebaut AG Incorporated 14 Financials

Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Assets 2007 2006 Cash flows from operating activities: 2007 2006 Cash and cash equivalents $703,179 409,942 Increase in net assets $716,817 268,354 Investments (note 3) 10,923,875 9,846,847 Adjustments to reconcile increase in net assets to net cash Accounts and other receivables 445,836 382,747 provided by (used in) operating activities: Grants and contributions receivable 1,276,104 1,603,722 Depreciation and amortization 246,303 279,985 Publication inventory 84,456 98,254 Realized and unrealized gains on investments (391,341) (212,130) Prepaid expenses and other assets 108,047 310,295 Contributed assets (87,695) (14,208) Furniture, equipment, and leasehold improvements, net (note 6) 557,249 704,696 Changes in operating assets and liabilities: Total assets $14,098,746 13,356,503 (Increase) decrease in accounts and other receivables (63,089) 227,031 Decrease (increase) in grants and contributions receivable 327,618 (560,300) Liabilities and Net Assets Decrease in publication inventory 13,798 21,735 Liabilities: Decrease (increase) in prepaid expenses and other assets 202,248 (60,926) Accounts payable and accrued expenses $798,063 715,441 Increase (decrease) in accounts payable and accrued expenses 82,622 (18,809) Deferred revenue 29,250 45,885 Decrease in deferred revenue (16,635) (76,615) Deferred rent obligation (note 9) 553,414 593,975 Decrease in deferred rent obligation (40,561) (58,113) Total liabilities 1,380,727 1,355,301 Net cash provided by (used in) operating activities 990,085 (203,996) Cash flows from investing activities: Net assets: Purchases of furniture and equipment (11,161) (43,629) Unrestricted 8,154,843 7,167,955 Purchases of investments (6,380,595) (4,536,854) Temporarily restricted (note 4) 1,079,637 1,434,478 Proceeds from sales of investments 5,694,908 4,673,649 Permanently restricted (note 4) 3,483,539 3,398,769 net cash (used in) provided by investing activities (696,848) 93,166 Total net assets 12,718,019 12,001,202 net increase (decrease) in cash and cash equivalents 293,237 (110,830) Total liabilities and net assets $14,098,746 13,356,503 Cash and cash equivalents at beginning of year 409,942 520,772 See accompanying notes to consolidated financial statements. Cash and cash equivalents at end of year $703,179 409,942 See accompanying notes to consolidated financial statements.

Consolidated Statement of Activities Temporarily Permanently 2007 2006 Unrestricted restricted restricted total total

Revenue and support: Grants and contributions $3,970,059 1,744,387 — 5,714,446 5,641,993 Special events revenue (net of direct donor benefit costs of $418,821 in 2007 and $419,368 in 2006) 3,083,740 — — 3,083,740 2,723,132 Donated services and assets (note 7) 323,165 — — 323,165 572,062 Advisory fee income 918,523 — — 918,523 987,961 Sales of publications 57,626 — — 57,626 24,163 Honoraria and other 413,953 — — 413,953 269,844 Royalties 3,402 — — 3,402 6,917 Interest and dividend income 342,144 — 11,565 353,709 282,623 Realized and unrealized gains on investments 318,136 — 73,205 391,341 212,130 Net assets released from restrictions 2,099,228 (2,099,228) — 0 — Total revenue and support 11,529,976 (354,841) 84,770 11,259,905 10,720,825

Expenses: Program services: National education 817,611 — — 817,611 1,200,022 Research 2,746,803 — — 2,746,803 2,410,545 Communications 2,441,997 — — 2,441,997 2,344,060 Advisory services 1,626,334 — — 1,626,334 1,717,041 Information center and services 968,051 — — 968,051 957,506 Total program services 8,600,796 0 0 8,600,796 8,629,174 Supporting services: Finance and administration 1,186,479 — — 1,186,479 1,125,692 Development and member relations 755,813 — — 755,813 697,605 Total supporting services 1,942,292 0 0 1,942,292 1,823,297 Total expenses 10,543,088 0 0 10,543,088 10,452,471 Increase (decrease) in net assets 986,888 (354,841) 84,770 716,817 268,354

Net assets at beginning of year 7,167,955 1,434,478 3,398,769 12,001,202 11,732,848 Net assets at end of year $8,154,843 1,079,637 3,483,539 12,718,019 12,001,202 See accompanying notes to consolidated financial statements.

Supplemental Schedule of Functional Expenses PROGRAM SERVICES SUPPORTING SERVICES National Advisory Information center Finance and Development and 2007 2006 education Research Communications services and services administration member relations total total Salaries, benefits, and payroll taxes $587,048 1,763,754 1,334,040 1,305,108 608,845 834,273 592,597 7,025,665 6,221,740 Professional fees 122,123 486,277 146,972 34,684 25,761 132,712 2,912 951,441 1,560,051 Pension expense 33,580 108,297 79,967 87,125 43,302 59,097 38,980 450,348 333,010 Occupancy 19,273 139,454 110,841 93,658 61,237 68,780 45,246 538,489 548,060 Printing, typesetting, and design — — 343,026 — — — — 343,026 369,330 Supplies 1,863 10,428 9,901 7,840 11,739 5,334 3,388 50,493 59,026 Postage and shipping 5,606 6,799 36,029 5,543 1,651 2,770 11,527 69,925 93,226 Books and subscriptions 5,288 2,719 2,757 2,036 34,304 1,471 841 49,416 78,559 Meetings, conferences, and travel 20,314 90,513 57,155 26,420 16,642 5,325 23,371 239,740 369,906 Repairs and maintenance 1,322 4,352 4,893 3,485 73,488 2,199 1,790 91,529 72,792 Telephone 6,515 16,111 14,014 9,893 5,681 5,770 4,986 62,970 69,527 Depreciation and amortization 10,048 65,714 53,382 32,499 31,124 34,252 19,284 246,303 279,985 Conference expense — — 179,494 — — — — 179,494 191,214 Other 4,631 52,385 69,526 18,043 54,277 34,496 10,891 244,249 206,045 Total expenses $817,611 2,746,803 2,441,997 1,626,334 968,051 1,186,479 755,813 10,543,088 10,452,471

Financials 15

NConsolidatedotes to Consolidated Statement Financial of Cash S Flowstatements (3) Investments Investments consist of the following at August 31, 2007 and 2006: (1) Nature of Operations and Summary of Significant Accounting Policies Catalyst Inc. is a nonprofit research and advisory organization, that works with businesses and the professions 2007 2006 to build inclusive environments and expand opportunities for women at work. Catalyst Canada Inc. (Catalyst Cost Fair value Cost Fair value Canada) was incorporated on December 27, 2000, to fulfill the mission of Catalyst in Canada and is controlled Short-term cash investments $239,961 239,961 300,602 300,602 by Catalyst Inc. Catalyst Europe AG (Catalyst Europe) was incorporated on June 22, 2006, to fulfill the mission Corporate fixed income 6,548,941 6,486,623 5,959,004 5,895,351 of Catalyst in Europe and is controlled by Catalyst Inc. The accompanying consolidated financial statements Equity funds 3,805,939 4,197,291 3,405,975 3,650,894 include the accounts of Catalyst Inc., Catalyst Canada, and Catalyst Europe (collectively, Catalyst). $10,594,841 10,923,875 9,665,581 9,846,847 (a) Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. (4) Composition of Net Assets All significant interorganizational balances have been eliminated in consolidation. (a) Temporarily Restricted Net Assets Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor- Temporarily restricted net assets at August 31, 2007 and 2006 are restricted as follows: imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Unrestricted Net Assets – Net assets that are not subject to donor-imposed stipulations and that 2007 2006 may be expendable for any purpose in performing the primary objectives of Catalyst. High Potentials in Pipeline: MBA $267,209 — Temporarily Restricted Net Assets – Net assets that are subject to donor-imposed stipulations that Men as Diversity Champions 177,952 — will be met either by actions of Catalyst and/or the passage of time. As the restrictions are satisfied, Visible Minority Study 169,937 531,907 temporarily restricted net assets are reclassified to unrestricted net assets and reported inthe Unwritten Rules 165,381 — accompanying consolidated financial statements as net assets released from restrictions. Talent Management in Global Information Technology 130,121 172,911 Permanently Restricted Net Assets – Net assets that are subject to donor-imposed stipulations that Global Leaders 2 52,814 235,960 neither expire with the passage of time nor can be fulfilled or removed by actions of Catalyst. Creating Inclusive Workplaces 45,886 — Permanently restricted net assets consist of assets held in the “Felice N. Schwartz Reserve Fund for Making Change Series 37,157 70,636 the Advancement of Women in Business and the Professions” (see note 4(b)). Occupancy 21,219 63,890 (b) Comparative Totals Stereotype and Performance Management 7,368 — The consolidated financial statements include certain prior year, summarized, comparative information in total Women of Color in Firms 4,128 126,060 but not by net asset class. Such information does not include sufficient detail to constitute a presentation in WOC Network Project 465 34,527 conformity with U.S. generally accepted accounting principles. Accordingly, such information should be read Member Website Development — 118,210 in conjunction with Catalyst’s consolidated financial statements as of and for the year ended August 31, Double Bind — 32,108 2006, from which the summarized information was derived. Women Leadership Conference — 29,013 (c) Revenue Recognition Parental After-School Study — 19,256 Contribution and grant revenue is recognized when an unconditional promise to give is received. As such, $1,079,637 1,434,478 contributions and grants receivable are recorded in the year made and are recorded as restricted revenue if they are received with donor stipulations. The majority of contributions receivable is scheduled to be collected (b) Permanently Restricted Net Assets in the next year. Advisory fee income is recognized as unrestricted revenue when the related services are During 1992, Catalyst established the “Felice N. Schwartz Reserve Fund for the Advancement of Women in rendered. Business and the Professions.” The principal amount of the fund may be borrowed on a short term basis by (d) Furniture, Equipment, and Leasehold Improvements Catalyst to complete research projects, which are of strategic importance but lack complete funding, and to Furniture, equipment, and leasehold improvements are recorded at cost or, if donated, at the fair value at meet temporary cash flow needs. The income earned from invested principal will be used to grow the fund date of receipt. Leasehold improvements are amortized on a straight line basis over their estimated useful in line with inflation and to complete the financing of research projects for which the majority of funds have lives or the term of the lease, whichever is shorter. Furniture and equipment are depreciated on a straight line been raised. Because borrowings from the principal of this fund must be repaid, these amounts have been basis over their estimated useful life of five years. classified as permanently restricted net assets. There was no borrowing from the fund in 2007 or 2006. (e) Cash and Cash Equivalents (5) Income Taxes Catalyst considers all highly liquid debt instruments purchased with an original maturity of three months Catalyst is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (the or less to be cash equivalents with the exception of those short-term investments managed by Catalyst’s Code) and has been classified as an organization that is not a private foundation under Section 509(a). investment manager for long-term investment purposes. (6) Furniture, Equipment, and Leasehold Improvements (f) Investments The components of furniture, equipment, and leasehold improvements as of August 31, 2007 and 2006 are Investments in equity securities with readily determinable fair values and all investments in debt securities as follows: are measured at fair value based on quoted market prices. Realized and unrealized gains and losses are recognized as changes in net assets in the period in which they occur, and investment income is recognized 2007 2006 as revenue in the period earned. Furniture and fixtures $435,063 433,755 Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market Equipment 2,013,400 1,915,852 volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible Computer software 61,500 61,500 that changes in the values of investment securities will occur in the near term and such changes could Leasehold improvements 717,744 717,744 materially affect the amounts reported in the consolidated financial statements. 3,227,707 3,128,851 (g) Use of Estimates Less accumulated depreciation and amortization 2,670,458 2,424,155 The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting Furniture, equipment, and leasehold improvements, net $557,249 704,696 principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements (7) Donated Services and Assets and the reported amount of revenues and expenses during the reporting period. Actual results could differ The components of donated services and assets for the years ended August 31, 2007 and 2006 are as from the estimates made by management. follows: (2) Description of Program and Supporting Services The following functional classifications are used to account for the program and supporting services of 2007 2006 Catalyst: Legal $112,900 208,144 (a) National Education Investment 28,025 24,700 National Education fosters awareness and informs decision-makers of the changing role and needs of women Computer equipment 87,695 14,208 in the workplace by promoting Catalyst’s mission of advancing women in business and the professions, Consulting 27,545 265,000 Catalyst’s research, and services. The National Education effort also includes the execution of strategic plans Other 67,000 60,010 to expand the reach of Catalyst’s mission in the North American and European business communities. $323,165 572,062 (b) Research (8) Pension Plan Research conducts qualitative and quantitative research on both women’s leadership advancement and Catalyst sponsors a defined contribution money purchase plan. Catalyst contributes 5% of compensation work-life issues across a wide range of industries, geographies, generations, and racial/ethnic groups. This and employees are given the choice to contribute up to 5% of their salaries with Catalyst matching dollar for research culminates in published studies that include findings from interviews, focus groups, and surveys, dollar up to limits established by the Code. An employee becomes eligible to participate in the plan after one as well as company best practices and recommendations for companies and firms interested in recruiting, year of service. Total pension expense in 2007 and 2006 was $450,349 and $333,010, respectively. retaining, and advancing women. Catalyst has conducted research on women in leadership in the United (9) Commitments and Contingencies States, Canada, and Europe. In 1997, Catalyst entered into a lease agreement for office space, expiring in 2012, for its New York City (c) Communications headquarters. In connection with the new lease, Catalyst received 14 months of free rent and reimbursement Communications creates and executes strategies to increase Catalyst’s visibility in the United States, Canada, from the landlord for leasehold improvements of approximately $552,000. The reimbursement from the and Europe by developing strategic partnerships and strengthening its , products, and services. landlord for leasehold improvements, as well as the value of the 14 months of free rent, have been recorded Communications is responsible for editing, designing, and producing all publications and collateral materials, as deferred rent obligation and are being amortized over the lease term. Rental expense for this space is and for public education activities such as press relations and speaking engagements. The department recorded on a straight line basis. The lease provides for escalation based on operating costs. manages special events, including the Catalyst Awards Dinner and conferences to disseminate Catalyst In June 2002, Catalyst Canada executed a lease for office space expiring in 2007. The lease was renewed in research. June 2007 expiring in 2012. In connection with the new lease, Catalyst Canada received three months of free (d) Advisory Services rent that have been recorded as deferred rent obligation and are being amortized over the lease term. Under Advisory Services conducts large-scale internal organizational assessments on a proprietary basis for the lease, Catalyst Canada is obligated to pay for rent and other occupancy costs. companies and firms. It advises employers on workplace barriers and successful strategies to retain, develop, In 2002, Catalyst entered into a license agreement for office space for its Western Region Program. Under and advance women. Advisory Services also provides single issue, focused workshops on topics such as this agreement, which expired in July 2007 and was extended through December 14, 2007, the value of the mentoring, creating women’s networks, and work-life integration. rent for licensed space is being contributed by the licensor. The value of contributed rent over the agreement (e) Information Center and Services period of $432,173 was recorded as temporarily restricted donated services and contributions receivable. In The Information Center tracks and collects information and produces quality results to requests through a 2007, an additional $30,539 was recorded for the extension of the lease. The contributions will be released comprehensive collection of books, periodicals, statistics, government reports, and press coverage of working from restriction and the receivable will be amortized over the lease term. Receivables include $21,219 related women. The Information Center provides efficient, valuable information to Catalyst members, the media, and to this agreement, which reflects increase in value of the rent for licensed space of approximately $30,539 those who formulate public policy. due to extension of the lease. (f) Finance and Administration Aggregate rent expense amounted to $532,847 and $540,415 in fiscal 2007 and 2006, respectively. Future Finance and Administration maintains operational, administrative, and financial responsibility for Catalyst. minimum lease commitments under the leases as of August 31, 2007, are as follows: (g) Development and Member Relations Development and Member Relations enlists corporate, individual, governmental, and foundation contributions Year ending August 31: for general support and special research projects. The department manages relationships with members 2008 $371,867 headquartered in the United States, Canada, and Europe. 2009 371,867 2010 371,867 2011 371,867 2012 371,867 $1,859,335

16 Catalyst Boards

Catalyst Board of Directors

Chair Charles O. Holliday, Jr. Mary B. Cranston, Esq. Mary Beth Hogan, Esq. Aylwin B. Lewis Stephen W. Sanger Chairman & CEO Firm Senior Partner Partner & Management President & CEO Chairman DuPont Pillsbury Winthrop Shaw Committee Member Sears Holdings General Mills, Inc. Pittman LLP Debevoise & Plimpton LLP Corporation Secretary Stephanie A. Streeter Anne M. Mulcahy Michael J. Critelli Jeffrey R. Immelt Edward M. Liddy Former Chairman, Chairman & CEO Executive Chairman Chairman & CEO Chairman President & CEO Xerox Corporation Pitney Bowes Inc. General Electric Company Allstate Insurance Banta Corporation Company Treasurer David B. Dillon Ann Dibble Jordan James S. Turley Susan E. Arnold Chairman & CEO Consultant John Mack Chairman & CEO President, The Kroger Co. Chairman & CEO Ernst & Young LLP Global Business Units Andrea Jung Morgan Stanley The Procter & Gamble James Dimon Chairman & CEO G. Richard Wagoner, Jr. Company Chairman & CEO Avon Products, Inc. Renetta E. McCann Chairman & CEO JPMorgan Chase & Co. CEO General Motors Brenda C. Barnes Karen Katen Starcom MediaVest Group Corporation Chairman & CEO William A. Downe Chairman Sara Lee Corporation President & CEO Pfizer Foundation Marilyn Carlson Nelson Richard E. Waugh BMO Financial Group Chairman President & CEO Lloyd C. Blankfein Jeffrey B. Kindler Carlson Companies, Inc. Scotiabank Chairman & CEO Thomas J. Engibous Chairman & CEO The Goldman Sachs Chairman Pfizer Inc Joseph Neubauer Maggie Wilderotter Group, Inc. Texas Instruments Chairman & CEO Chairman & CEO Incorporated Ilene H. Lang ARAMARK Citizens Communications Ian M. Cook President Company President & CEO Catalyst Inc. James H. Quigley Colgate-Palmolive CEO Company Deloitte Touche Tohmatsu

Chairs Emeriti, Honorary Catalyst Board of Advisors Catalyst Board of Directors Directors Chair John H. Bryan Tony Comper Janice Fields Nancy Glaser Kathleen P. Marvel Retired Chairman & CEO Former President & CEO Executive Vice President & SVP, Global Chief Diversity Officer Sara Lee Corporation BMO Financial Group Chief Operating Officer Communications The Chubb Corporation McDonald’s USA, LLC Avon Products, Inc. J. Michael Cook Ann M. Fudge Maureen A. McGuire Retired Chairman & CEO Former Chairman & CEO Glen Ellen Brown Clyde Jones EVP & Chief Marketing Deloitte & Touche LLP Young & Rubicam Brands Vice President, Hearst Vice President & Chief Officer Diversity Officer Thomas J. Engibous Reuben Mark Brand Development Sears Holdings The Hearst Corporation Automatic Data Corporation Chairman Chairman Processing, Inc. Texas Instruments Colgate-Palmolive Deborah Dagit Christine Miller Incorporated Company Executive Director, Jeanne M. Kane Chief Operating Officer Diversity & Work Managing Director, InterTech Media, LLC Reuben Mark Barbara Paul Robinson, Gender Strategy & Chairman Esq. Environment Merck & Co,. Inc. Business Development Louise M. Parent Colgate-Palmolive Partner Lehman Brothers Inc. EVP & General Counsel Company Debevoise & Plimpton LLP Monica Emerson American Express Nancy Killefer Company John F. Smith, Jr. Executive Director – Senior Director & Office Retired Chairman & CEO Corporate Diversity Office Manager Mary Frances Pearson General Motors Chrysler LLC McKinsey & Company Partner, Government Corporation Relations Honorary Directors Teresa Finley CFO International Ron Kirk Ernst & Young LLP Operations Partner Vinson & Elkins L.L.P. Robert Pease UPS President, Shell Trading Margaret M. Foran Ilene H. Lang (US) Company SVP, Corporate President Governance, Associate Catalyst Sheila A. Penrose Chairman General Counsel & Alfonso E. Martinez Corporate Secretary Jones Lang LaSalle SVP, Human Resources Incorporated Pfizer Inc Sodexho, Inc.

Catalyst Boards 17

Patricia Salas Pineda Horacio Rozanski J. Randall White Chairs Emeriti Denise Morrison Group VP, Legal & Chief Human Resources Senior Vice President, Jill Kanin-Lovers President, North America Philanthropy Officer Corporate Affairs Former Senior Vice – Soups, Sauces and Toyota Motor North Booz Allen Hamilton Inc. Sara Lee Corporation President, Human Beverages America, Inc. Resources Campbell Soup Company Elizabeth J. Smith Claudette J. Whiting Avon Products, Inc. Janet Pines General Manager, General Manager, Chief Insight Officer Infrastructure Access Global Diversity and DraftFCB Services Inclusion IBM Corporation Microsoft Corporation Catalyst Canada Advisory Board

Chair Richard E. Waugh Deborah Gillis Ilene H. Lang Gordon M. Nixon Bruce B. Simpson President & CEO Executive Director President President & CEO Managing Partner Scotiabank Catalyst Canada Inc. Catalyst RBC Financial Group McKinsey & Company (Canada) John H. Bowey, FCA Linda S. Hasenfratz William A. MacKinnon William H. Osborne Chairman CEO & Director CEO President & CEO Carol Stephenson Deloitte & Touche LLP Linamar Corporation KPMG LLP Canada Ford Motor Company of Dean Canada Canada, Limited Richard Ivey School Beth Horowitz Ellen J. Moore of Business, University of Christie J. B. Clark Former President & CEO President & CEO Michael J. Sabia Western Ontario CEO, Canadian Partner American Express Canada Chubb Insurance President & CEO PricewaterhouseCoopers Company of Canada Bell Canada Chair Emeritus LLP, Canada Donna Soble Kaufman Tony Comper Corporate Director Richard W. Nesbitt W. Iain Scott Former President and CEO William A. Downe CEO Chair & CEO BMO Financial Group President & CEO TSX Grooup McCarthy Tétrault LLP BMO Financial Group

Catalyst Western Region Advisory Board

Chair Mary B. Cranston, Esq. Cathy Benko Gerri Elliott Jacqueline Kosecoff Dawn Robertson Firm Senior Partner Vice Chairman & Chief VP, Worldwide Public CEO, Ovations Pharmacy President, Old Navy Pillsbury Winthrop Shaw Talent Officer Sector Solutions Gap Inc. Pittman LLP Deloitte & Touche USA LLP Microsoft Corporation UnitedHealth Group Quinn H. Tran DeAnne Aguirre Gary Bridge Rojon Hasker Ilene H. Lang President & CEO Senior Vice President Senior Vice President, President/General President GlobAll Connect Booz Allen Hamilton Inc. Internet Business Manager Corporate Catalyst Solutions Group Perishables & Lifestyle Chair Emeritus Cisco Systems, Inc. Safeway Inc. Lorrie Norrington Lewis E. Platt President Former Chairman of eBay International the Board Catalyst Europe Advisory Board The Boeing Company

Chair Davida Johnson Ruth R. H. Bourne Catherine Ferrant Helene Ratte Helena Trachsel Global Business Vice Senior Advisor, Global VP, Diversity and Partner, Head Diversity Management President D&I Practice Accountability HR Director for EMEA Swiss Reinsurance Company The Dow Chemical Shell Oil Company Total S.A. Deloitte & Touche (Europe) Company – Europe S.A. Joan L. Wales Oscar Cardona Eleanor Tabi Raj Ray Head of Function Katharina Amacker VP, HR EMEA Haller-Jorden European Director, BP p.l.c. Head Diversity Nike (Europe) General Manager Diversity & Inclusion Switzerland Catalyst Europe AG Lehman Brothers Europe Alan Walters Novartis AG Nicole Chandrashekara HR Director Executive Director, Sue W. Jex Sandra Stenico Unilever Barbara Beck Group Diversity Chief Operating Officer, HR Vice President Human President, EMEA UBS AG HSBC Holdings plc Resources, European Isabelle Welton Manpower Inc. Union Director of Communications Pedro Escudero Ilene H. Lang Kraft Foods Europe IBM EMEA Europe Personnel Director President General Motors Catalyst As of January 2, 2008 Corporation Expanding opportunities for women and business

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