DEFIANT DISPLAY. In March, the investment management firm State Street Global Advisors installed a statue called “Fearless Girl” in New York’s financial district. The work by Delaware artist Kristen Visbal stares down Wall Street’s famous charging bull — calling attention to the lack of women on corporate boards of directors.

DIREC TION THE MOVEMENT TO PUT MORE WOMEN ON CORPORATE BOARDS GAINS MOMENTUM, BUT THERE’S STILL A LONG WAY TO GO. A NEW

Story by DIREC TION Karen West OU WOULD THINK THAT GETTING state, the presence of women on boards has risen from 14 CORPORATE BOARDS OF DIRECTORS percent in 2014 to 18 percent in 2016, according to Stewart. TO ACHIEVE GENDER BALANCE Earlier this year, Starbucks WAS AN ISSUE ADDRESSED — AND ANSWERED — A said it would add three new directors to its board, includ- GENERATION AGO. ¶ AND YOU WOULD BE WRONG. ¶ ing its fourth female, creating one of the nation’s most diverse BUT THE PENDULUM MAY FINALLY BE SWINGING IN corporate boards. With these additions, the Starbucks board FAVOR OF ADEQUATE REPRESENTATION OF WOMEN will grow to 14 people, be 29 percent female and 36 percent — AND THEIR DIVERSE PERSPECTIVES, VALUES AND ethnic minority, and include a IDEAS — ON CORPORATE BOARDS. BOARDROOM range of ages, from millennials to baby boomers. DIVERSITY IS NOW — FINALLY! — VIEWED AS A TOP “I’ve tried to create an en- vironment within the board BUSINESS IMPERATIVE, AND MANY COMPANIES that would be culturally similar to that of the company,” says ENTHUSIASTICALLY EMBRACE A “DIFFERENT IS Howard Schultz, the company’s BETTER” CORPORATE CULTURE. founder and chairman. Going the high-profile route is another way to call attention to the importance of having qualified women in the board- With five women on its 11-person They all share the same goals: to redefine room. In March, Expedia Inc. added Chelsea board, Alaska Air Group recently won the how boards are governed, and to ensure Clinton as a director, making her the third WomenCorporateDirectors Foundation’s visionary, diverse representation that better female on a 14-person board. WCD Visionary Award for Leadership and reflects the marketplace. As today’s business landscape increases Governance of a Public Company. Alaska It makes perfect sense. Women account in complexity, executives realize the im- also won the first-ever Governance Award in for nearly half the American workforce but portance of having directors with differing Business magazine’s Executive Excel- make up an average of 19.9 percent of S&P backgrounds to ensure the making of sound lence Awards program this year. 500 corporate boards — 18 percent in Wash- decisions and creation of strong oversight of A group of Pacific Northwest business ington state. As well, women are the world’s senior management, says Ed Thomas, Seattle leaders, which formed an onBoarding Wom- most powerful consumers, responsible for up managing partner of Deloitte, the account- en program two years ago, is pushing to have to 85 percent of all purchases. Still, Fortune ing and professional services consulting firm. women make up 30 percent of corporate magazine recently reported that, as of 2016, Thomas serves as cochair of onBoarding boards in the region by 2020. 24 Fortune 500 companies had no women Women with Lucinda Stewart and Stewart “We want to make sure the Pacific North- on their boards. Landefeld, a partner in the Seattle law firm west stays cutting edge on this issue, as we “Public boardrooms don’t look like the Perkins Coie. He believes diverse experiences have in so many other ways from technology average consumer,” says Erin Lantz, VP and views are critical to handling emerging to biotech to the various social causes that and general manager of mortgages at issues like cybersecurity, social media, inter- have kept Seattle forward thinking,” says Group. Lantz, who recently was appointed national markets, analytics and recruiting Lucinda Stewart, a Seattle-based recruiter to two corporate boards after graduating new generations of talent. Without diverse for the executive search and leadership con- from Seattle’s onBoarding Women program, representation, Thomas says a board “could sulting firm Spencer Stuart and cochair of adds, “You want your company to reflect the miss having a [finger on the] pulse on the onBoarding Women. “We decided to lock people you are serving.” trends and demographic changes” that affect arms and do something about it.” corporate strategy. The diversity buzz is noticeable. OnBoard- “We [Deloitte] have seen firsthand how ing Women boot camps are underway in ashington compa- greater diversity in gender, background, ex- Seattle. Local, national and global studies nies seem to be getting perience and thought results in more effective espousing the benefits of boardroom gender the message slowly but boards, boards that ask the tough questions, diversity come out almost weekly. Industry W surely. Tableau Software look beyond usual solutions and construc- trade groups, nonprofits and universities, recently added its first female board member tively challenge management,” Thomas adds. including the University of Washington, are and, in 2015, Expeditors International of Is 30 percent female representation by rolling out training and mentoring programs. Washington added its second. In Washington 2020 doable? Does it even matter?

42 / SEATTLE BUSINESS May 2017 PREVIOUS SPREAD: PHOTOGRAPH by FEDERICA VALABREGA

Here’s why Thomas and others believe the members have been important role models panies with women on their boards tend to answer to both questions is yes: who ask tough questions at board meetings perform better, mainly because of the fresh n The products a company sells are most and offer crucial oversight to the business. “I perspectives women bring to the table. Credit likely being purchased by women, who, have had numerous employees over the years Suisse Research Institute reports that, from by the way, are making more money these tell me how inspirational it is to have Peggy 2005 to 2011, companies with women on days. Women are responsible for the bulk of [Piesik], Judith [Cochrane] and Marina their boards had higher average returns on consumer purchasing — buying everything [Cofer-Wildsmith] on our board. They have equity and higher net income growth. from cars to health care. The global income literally helped inspire the next generation of A study by Catalyst, a New York-based of women is predicted to reach $18 trillion outstanding female leaders within the .” nonprofit that has studied the issue for years, by 2018, according to the London-based Of course, board diversity is not just about concluded that Fortune 500 companies with professional services firm EY, formerly women’s equality. Studies show that com- the highest percentage of women board Ernst & Young. n Shareholders are questioning through letters, resolutions and dialogues why most board members are white males in their 50s and 60s. Investors of Apple and Chipotle Mexican Grill, for example, are calling for gender diversity and more accountability. In 2014, U.S. investors controlling a combined $578 billion of assets said they considered WORK TO DO diversity in the boardroom a metric for HERE’S A SNAPSHOT OF BOARD REPRESENTATION making investment decisions, according BY GENDER AMONG 25 PROMINENT COMPANIES BASED IN to the Washington, D.C.-based Forum for WASHINGTON OR, IN THE CASE OF BOEING, HAVING A DOMINANT Sustainable and Responsible Investment. n Women hold nearly half of all manage- PRESENCE IN THE STATE. FIVE — HIGHLIGHTED BELOW — ment positions, according to the Bureau HAVE REACHED A RATIO OF 30 PERCENT FEMALE OR GREATER. of Labor Statistics. In addition, according to the National Association of Women ALASKA AIR GROUP 5 OF 11 Business Owners, 10.1 million firms are AMAZON 3 OF 11 owned by women, employing more than AVISTA CORPORATION 4 OF 11 13 million people and generating more than 2 OF 15 $1.9 trillion in sales. THE BOEING COMPANY 2 OF 13

COLUMBIA BANK 3 OF 10 ountlake Terrace- COSTCO WHOLESALE 2 OF 13 based 1st Security Bank EXPEDIA 3 OF 14 of Washington has three EXPEDITORS INTERNATIONAL OF WA. 2 OF 11 women on its eight- M F5 NETWORKS 2 OF 9 member board. “I’m always amazed that there are still HOMESTREET BANK 0 OF 9 so few women board members, especially KEYTRONICEMS 0 OF 5 in banking,” says CEO Joseph Adams. “I MICROSOFT 3 OF 111 suspect a large majority of employees who NAUTILUS 1 OF 5 work for are women, yet there are very few women on bank boards. This is NORDSTROM 2 OF 12 insanity, in my book.” PACCAR 2 OF 11 With an employee base that’s 71 percent STARBUCKS 4 OF 14 female, the bank’s core values were recently TABLEAU SOFTWARE 1 OF 9 rewritten to include the phrase “celebrating diversity and supporting equality for all.” T-MOBILE US 1 OF 11 Notably, 1st Security was the only bank in the TRUEBLUE 3 OF 9 state to publicly support the “marriage equal- TRUPANION 1 OF 9 ity” act when it was on the ballot in 2012. It WASHINGTON FEDERAL 3 OF 9 opened up the front of its Capitol Hill branch WEYERHAEUSER 3 OF 133 as a visitors’ center for the gay community. “Culture,” Adams says, “is a very big deal ZILLOW GROUP 1 OF 9 for us.” He adds 1st Security’s female board ZUMIEZ 2 OF 9 note: figures accurate as of march 23, 2017 May 2017 SEATTLE BUSINESS / 43 GETTING ON BOARD WOMEN BOARD SEATTLE ONBOARDING DIRECTORS WOMEN PROJECT DEVELOPMENT bringing on new directors who can both bring There is no formal application process. a lot to the table but also be able to comfortably PROGRAM Individuals are nominated and invited For information on the to join the next cohort by cochairs support and challenge others in the group.” next seminar at the UW Stewart Landefeld (slandefeld@ Goethals, who has been working to el- Foster School of Business, perkinscoie.com), Lucinda Stewart evate women into the boardroom for the visit foster.washington. ([email protected]) and Ed past decade, says personality fit is often a edu/women-on-boards. Thomas ([email protected]). key ingredient. “This makes directors want to appoint ‘known quantities’ — people they not only BOARD SHORTS know but have seen in action,” she explains. CORPORATE DIRECTORS MAKE GOOD MONEY. “There are so many qualified women. I’ve heard some men say that there aren’t, and n Compensation ranges from a median of $142,000 it’s simply not true. What is true is that those at small-cap companies to $276,000 at large companies. men don’t know that many qualified women.” n Compensation is split more or less equally between Goethals runs the Women Board Direc- a cash retainer and the granting of company stock. tors Development Program at the Foster n Companies in the energy, information technology School of Business and says senior managers and health care industries tend to pay the highest compensation. need to stop assuming that the men who n Companies in the utilities, consumer discretionary advocate for themselves most aggressively and materials industries tend to pay the lowest. will be the most effective choices. Women, source: steven hall & partners too, need to develop greater confidence and learn to advance themselves by finding mentors who will sponsor their journeys to the boardroom. The Women Board Directors Development Program, which consists of a two-day seminar, has graduated 120 participants. It will be of- directors outperformed those with the least male-dominated boards had a vacancy, they fered again in June and October of this year. by 53 percent in return on equity and by reached into their own networks of like- 42 percent in return on sales. The group minded colleagues — usually older white recently announced a new board-mentoring men — with whom they had bonded on nboarding women, initiative in the United States, which pairs the golf course or over lunch. meanwhile, is working on a CEOs and board chairs with women who “Women aren’t in the network, so they twofold plan of action: raising are candidates for boards. don’t readily come to mind,” says Phyllis O awareness among women in Understanding why men still outnum- Campbell, chair, Pacific Northwest, for the Pacific Northwest of what is involved ber women in the boardroom depends on JPMorgan Chase and one of the five women in board service as well as connecting these whom you ask. People who support the now serving on Alaska Air Group’s board. women with executives and nominating status quo argue that there is a lack of Campbell thinks female board members board committees. qualified female candidates. Others say are more likely to ask the “right” questions The impetus and mission of onBoarding there are plenty of talented women, but and offer differing perspectives. “It’s some- Women became clear in January 2015, they just haven’t been discovered. times messier,” she says of the gender and Thomas says. It’s when the group fully re- “The pipeline for board members usually racial mix on Alaska’s board. “We don’t alized there is a national shortage of senior starts in the C-suite,” Thomas explains. “This always agree, by definition. That’s what women executives in the boardrooms of makes for a small pool of women candidates diversity brings to the table. Innovation is both public and private corporations. At that if boards are only looking at titles and not linked to different points of view.” time, only 18 percent of board seats nation- the breadth of a candidate’s qualifications.” She recalls that some of her early board ally were held by women. In the Northwest, He urges boards to consider looking at experiences with other companies were that figure was 14.5 percent. skills, not necessarily titles, given that women challenging. “Sometimes,” Campbell says, “I The third onBoarding Women cohort is hold fewer than 5 percent of the Fortune would get ignored. One time, a guy repeated expected to “graduate” 50 to 60 board-ready 500’s CEO positions. something I had said five minutes before.” women next year. This program also pairs Cate Goethals, an executive coach and women with mentors who are actively sitting adjunct professor in the Foster School of on boards. So far, nearly 40 women have en didn’t start out Business at the University of Washington, gone through the program and several have intentionally exclud- has similar theories. been approached about board appointments, ing women from the “Boards are intimate, collaborative environ- including Lantz. M boardroom. It’s more ments,” she says. “Board members, women At 37, Lantz is living proof that companies of an unconscious bias. Historically, when as well as men, want to make sure they are are willing to search outside traditional

44 / SEATTLE BUSINESS May 2017 FACING PAGE: PHOTOGRAPH by HAYLEY YOUNG sources for qualified board members. Since “IT’S NO SECRET governments of Australia and Canada have graduating with the first onBoarding Wom- also proposed board diversity guidelines. en cohort of 22, she has been appointed to THAT THE TYPICAL The Virginia-based Committee for Eco- the boards of two public companies: Seattle- nomic Development, a business-oriented based Washington Federal and TrueCar PROFILE OF public policy group, does not endorse quotas, Inc., an automotive pricing and information but it is lobbying nominating committees of provider in Santa Monica, California. A PUBLIC COMPANY prominent corporate boards to refresh their Lantz is the only woman on the True- selection processes to recruit more women. Car board and the youngest person on the BOARD MEMBER Specifically, the group wants companies to Washington Federal Board. She says her bring in one woman for every man who experience in consumer lending, technology IS DECADES MY gets a new board seat in the next four years. and online marketplaces helped differentiate Still, Campbell and other business lead- her from other, more traditional candidates. SENIOR, MALE, AND ers won’t stop pushing until the 30 percent “It’s no secret that the typical profile of a goal — at the very least — is reached. She public company board member is decades HAS TYPICALLY is one of about 30 “Champions of Change,” my senior, male, and has typically served as a a group of CEOs and business leaders from CEO or possibly another C-level officer,” says SERVED AS A CEO prominent U.S. companies who are work- Lantz, an internet executive with expertise OR POSSIBLY ing on the Thirty Percent Coalition’s U.S. in consumer lending and technology. initiative, which was launched in 2014. The While many agree having women in the ANOTHER coalition is supported by asset managers, boardroom provides a competitive edge, some state pension funds and women’s organiza- stop short of endorsing quotas, even though C-LEVEL OFFICER.” tions that aim to increase women on listed European countries such as Germany, Nor- company boards because it simply makes way, Spain, France and Belgium have passed — Erin Lantz, VP and general manager good business sense. legislation requiring a certain number of of mortgages at Zillow Group. “We are just trying to enlarge the pool,” women on their boards. Germany mandates says Campbell. “We need to hammer home 30 percent, Norway 40 percent. The national that this is a business imperative.”

BANK STATEMENT. Seattle-based Washington Federal is one of a handful of local firms to have achieved at least 30 percent female representation on its board of directors. Seated from left: Randall Talbot, Barbara Smith, Chairman Roy Whitehead, Brent Beardall and Mark Tabbutt. Standing from left: Thomas Kelley, Erin Lantz, Anna Johnson and David Grant.May 2017 SEATTLE BUSINESS / 45