Minnesota Census of Women in Corporate Leadership: How Minnesota’S Top 100 Public Companies Rank
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The 2014 Minnesota Census of Women in Corporate Leadership: How Minnesota’s Top 100 Public Companies Rank THE Gender Dividend Three Minnesota CEOs—all men—speak out about the importance of women in leadership roles. Doug Baker, Ecolab, CEO LETTER FROM THE PRESIDENT Roll Up Your Sleeves This year's census shows there is work to be done. by Lyndel King President, Minnesota Women’s Economic Roundtable t. Catherine University and the Minnesota Table of Contents Women’s Economic Roundtable (MWER) have collaborated to produce the Minnesota Census 1 Letter from the President of Women in Corporate Leadership since 2008. In that time, our state’s top 100 public companies 2 Census Highlights made some progress in diversifying their boards of directors S 3 Executive Summary and increasing the percentage of women executive officers, but this year the report shows that progress has slowed. 5 2014 Minnesota Census In 2008, when the first Minnesota Census was published, Honor Roll and Special women held 117 corporate board seats, and only four were Distinction Companies CEOs in the state’s top companies. By 2013, there were 119 women board members and seven CEOs. In 2014, the 7 Holding Steady: Women on percentage of women corporate board members remained flat, at 18.6 percent, but this still Boards of Directors represents the highest percentage of women corporate directors recorded to date. In 2014, the percentage of women executive officers decreased slightly, from 20.8 percent to 19.8 percent. 11 Leading the Way: Minnesota It is clear that we still have work to do to increase the percentage of women in both corporate companies leverage the executive leadership and on boards of directors. The good news is that there was, in 2014, a gender dividend. slight increase in directors who are women of color. 13 To Lead and Influence: St. A Time magazine article in June 2014 noted that nationally, growth in the percentage of Kate's students on corporate female executives also has remained stagnant. The article pointed out that although women leadership comprise nearly half of the workforce, only 14.3 percent hold top executive office positions at Fortune 500 companies and only 20 percent are in senior management roles. How Minnesota Companies Rank I hope that those Minnesota companies listed on the honor roll in this report—those with at least 20 percent women corporate directors and at least 20 percent women executive 15 Women Corporate Directors officers—will take pride in their achievements and lead the way in encouraging their peers to include women in leadership roles in their executive suites and on their boards. We all know 17 Women Executive Officers that it is not an issue of whether there are qualified women to fill these roles—there defi- nitely are. What likely will be required to provide more opportunities for women to lead in 19 Women Directors and Executive Officers by America’s corporations—to finally shatter those glass ceilings—are mentoring programs for Company women, stronger family support policies and equal pay structures. While government can play a role, particularly in the area of equal pay, it is really up to today’s corporate leaders to initi- 20 Methodology ate policies that allow women to realize their potential as leaders in America’s corporations. American business will definitely benefit from having more women involved in the decision- 21 Leading Ladies: Minnesota making that will guide America into the future. small business leaders offer For 40 years MWER has provided a forum to discuss, encourage and support the proof that women belong in advancement of women leaders in our community. We are happy to support the research to the boardroom. document women’s leadership roles in American business, and look forward to the future. u 21 Information Resources Photos: By Rebecca Zenefski, Rebecca Studios (pages 12, 13- 14, 21-22) ON THE COVER: Doug Baker, CEO of Ecolab, has made it a high priority to develop better gender balance and diversity on Ecolab's board. The company joined the Minnesota Census Honor Roll this year. Photography by Travis Anderson 1 APRIL 2015 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP mncensus.stkate.edu Census Highlights Women corporate directors and executive officers he 2014 Minnesota Census of Women in Corporate Leadership examines the percentage of women in Tleadership roles at the 100 largest publicly held companies headquartered in Minnesota as ranked by 2013 net revenue. Board positions reflect current leadership roles in corporate governance, while executive officer posi- tions provide a path to future leadership roles in corporate governance. Recent research indicates that companies appointing women leaders to corporate director and senior executive roles reap a “gender dividend,” a significant return on investment in diverse leadership with financial, market, governance and talent implications. About Data from this year’s Minnesota census suggests that fewer Minnesota companies are reaping the gen- the Census der dividend of diverse leadership: This report is produced u Minnesota’s largest 100 public companies reported a net decrease in both women corporate directors and women executive officers in 2014—a drop of three and seven, respectively. This net decrease repre- by St. Catherine University sents a reversal from 2013’s significant progress. and is co-sponsored by the Minnesota Women’s u Forty-eight of Minnesota’s 100 largest publicly held companies had both women corporate directors Economic Roundtable and women executive officers in 2014, four fewer than 2013. (MWER). Financial support u Twenty of Minnesota’s 100 largest publicly held companies have no women directors or executive of- provided by ficers in 2014, two more than 2013. Minnesota’s “zero-zero companies” are on the rise. C.H. Robinson, YWCA u Minnesota companies reporting higher revenue are more likely than smaller companies to have women Minneapolis and the in both the boardroom and the executive suite, a reflection of national trends. Women's Foundation of Minnesota. u Two companies had a net increase in both women directors and women executive officers in 2014: H.B. Fuller and Patterson Companies. u Three companies had a net decrease in both women directors and executive officers in 2014: Capella Education, CyberOptics and Famous Dave’s of America. St. Catherine University is proud to acknowledge these sponsors of the 2014 Minnesota Census of Women in Corporate Leadership: mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015 2 EXECUTIVE SUMMARY Dancing in Place Women leaders in Minnesota companies find fewer prospects. By Joann Bangs, Ph.D., and Rebecca Hawthorne, Ph.D., St. Catherine University ance steps: One 51 percent of management and step forward, professional jobs, yet they remain two steps back; outnumbered at all levels of cor- two steps for- porations (McKinsey & Company, ward, one step 2013). The “leaky pipeline” mani- Dback. Women continue to move fests disparate odds of advance- forward and back joining the ment for men and women: ranks of America’s corporate lead- u Men are three times ers. Progress has stalled. Women more likely to advance are dancing in place. from entry-level jobs to Catalyst, a nonprofit organiza- middle management than tion dedicated to women’s ad- women are. vancement in business, reports that u Men are two times more Joann Bangs Rebecca Hawthorne 2013 was the eighth consecutive likely to advance from year that Fortune 500 companies middle management to did not record significant growth senior management and tracting, retaining and promot- Two steps back in the percentage of women vice president. ing highly qualified women The seventh annual Minnesota corporate directors and the fourth u Men are two times more to senior leadership roles. Census of Women in Corporate consecutive year there was no sig- likely to advance to seats on Corporate culture is twice as im- Leadership reveals no prog- nificant growth in the percentage the executive committee. portant as is individual mindset ress in diversifying Minnesota of women executive officers. u Men are five times more in supporting women’s belief in boardrooms and senior executive Women hold 17 percent of likely to advance to CEO. their ability to succeed. “Leaning suites. In fact, Minnesota’s largest Fortune 500 board positions, Women, despite “leaning in” requires structural support as 100 public companies (revenues 15 percent of C-suite executive in” to career opportunities as well as shifts in both individual ranged from less than $.5 mil- positions and 5 percent of CEO Facebook COO Sheryl Sandberg and corporate mindsets. lion to $112 billion) reported positions (Catalyst, 2013). The (2013) suggests, frequently find The Minnesota Census of a net decrease in both women increasing scarcity of women themselves treading water. Women in Corporate Leadership corporate directors and women rising in corporate ranks reflects Extensive research docu- identifies those public compa- executive officers, reversing last a substantial loss of talent and ments the importance of “place” nies within our state that have year’s significant progress. a well-documented negative in determining drivers of gender provided both the structural Women continue to hold impact on the bottom line diversity (McKinsey, 2013; Bain support and corporate mindset 14.9 percent of the board seats of (McKinsey & Company, 2013). & Company, 2014). Corporate necessary for women and men Minnesota’s 100 largest publicly Women comprise 47 percent culture and the ecosystem it to succeed in senior leadership held companies in 2014. This of the U.S. workforce and hold shapes play major roles in at- roles. The business case for reflects no change in the percent- diversifying corporate leadership age of board seats held from 2013 is strong: improved financial to 2014. The total number of Minnesota Companies with performance, talent leverage, available board seats decreased by Women at the Table enhanced reputation, market 23 in 2014, with a net decrease of reflection, increased innovation three women directors.