HQ FINANCIAL VIEWS Volume IX, Issue II, September 2014 More Women On Corporate Boards© 30 WOMEN JOINING ILLINOIS CORPORATE BOARDS 1994-2013 26 25 NASDAQ COMPANIES 22 20 13 NYSE COMPANIES 18 15 14 14 14 14 8 3 12 6 1 10 7 9 3 8 4 6 13 5 5 5 5 11 11 10 0 4 2 8 8 0 3 4 6 5 7 3 0 2 2 2 4 0 2 4 2 1 3 1 1 3 2 2 01 1 1 1 1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 More Women On Corporate Boards© by Kathy Graham [email protected] Twitter: @TheHQCompanies SUMMARY i.e., front line (not staff) positions with full This paper is the author’s answer to a question profit and loss responsibility for a sizeable frequently posed by many accomplished women for profit corporation or a large division of regarding how to be considered for a position on a a major company. U.S. corporate board of directors. Completed using 2. Over 90% do not work for nor are they the latest available public data as of 7/31/14, the obviously related to the company’s top research captures two emerging structural shifts in leaders. the U.S., one the likely result of economic changes 3. Around 70% have advanced degrees (JD, and the other likely due to a societal trend. MA, MBA, PhD) or certifications (CPA, CFA). FIRST STRUCTURAL SHIFT: The number 4. The majority of these board women think, of women on U.S. corporate boards is act, and speak assertively—i.e., not passive increasing, so much so that the number of nor aggressive, but directive about their corporate boards with women is larger than intent. those without women on the board and trending upwards. This last structural shift—a change to assertive behavior—is likely an outgrowth from the level of SECOND STRUCTURAL SHIFT: The profile education and accomplishment in front line of women on corporate boards has changed. positions at major firms that these women share in The majority of the women who are currently common. When you’ve been running a successful members on corporate boards of directors now operation and have advanced education, it seems have the following characteristics: logical to expect a communication style in line with 1. Over 95% are successful corporate leaders the best traditions in executive leadership. with over 60% of them in a CEO type role— Text and charts copyright © 2014 by the author. No part of this article may be reproduced without written permission. Page 1 of 14 HQ FINANCIAL VIEWS Volume IX, Issue II, September 2014 More Women On Corporate Boards© WOMEN ON ILLINOIS CORPORATE BOARDS - 2014 Total Companies = 142 Total Number of Women Board Positions / Total Number of Board Positions = 185/1334 = 14% NUMBER OF COMPANIES 35 55 52 ZERO ONLY ONE MULTI NUMBER OF WOMEN ON THEIR COMPANY BOARDS NUMBER OF COMPANIES BY STOCK EXCHANGE 68 74 AFFILIATION - - - - - - N Y S E - - - - - - - - - - - N A S D A Q - - - - - NUMBER OF COMPANIES 11 24 33 24 31 19 ZERO ONLY ONE MULTI ZERO ONLY ONE MULTI NUMBER OF WOMEN ON THEIR COMPANY BOARDS BY STOCK EXCHANGE AFFILIATION As for what is causing the number of women in U.S. This paper’s findings cover all U.S. publicly held publicly held corporations to increase now—that’s corporations because the number of companies likely due to economic changes caused by the Great researched is statistically significant and the findings Recession. There has been much commentary were discussed with a number of U.S. board experts regarding whether the Great Recession would have to confirm national applicability. Publicly held occurred if there had been more diversity and less Illinois headquartered corporations were chosen as group think on corporate boards. Such a proxy for all U.S. publicly held corporations commentary, along with corporations’ need to because: survive the Great Recession, probably created There are enough companies overall and in enough pressure and impetus to increase the many of the major business sectors (consumer, number of women on corporate boards. In support industrial, etc.) to provide statistically of this theory, note that the number of women significant findings. being added to corporate boards incline steepens In Illinois there is roughly a naturally occurring significantly around this same time period on this even split between publicly held companies paper’s opening graph. listed on NASDAQ and those listed on NYSE. The number of companies that are publicly held Whatever the reason for these structural shifts, they corporations headquartered in Illinois is not appear to be here to stay, which is why this paper such a large number as to make the research includes: phase onerous. 1 piece of advice for men wanting to join a publicly held U.S. corporation board (page 6). If you would like further information regarding the 3 tips for women aspiring to publicly held U.S. limitations and/or methodology employed in corporation boards (page 6). gathering these statistics, this type of detail can be 2 company recommendations (pages 3-4). found at the back of this paper, starting with page 7. Text and charts copyright © 2014 by the author. No part of this article may be reproduced without written permission. Page 2 of 14 HQ FINANCIAL VIEWS Volume IX, Issue II, September 2014 More Women On Corporate Boards© STRUCTURAL SHIFT #1 . NYSE listed Tootsie Roll Industries (2 The number of women on corporate boards is women/3 men) increasing. NASDAQ listed Ulta Salon Cosmetics 75% of the 142 public companies listed on the Fragrances (4 women/5 men) NYSE or NASDAQ exchanges that are . NASDAQ listed Lifeway Foods (2 headquartered in staid Illinois have at least 1 women/3 men). woman on their corporate board (37% with As the chart below illustrates, in every sector— one) and many with up to 4 women on their commodities (energy, agribusiness, etc.), corporate boards (39% with between 2 and 5 consumer products, financial, healthcare, women on their corporate boards). industrial, technology/IT, services, and Four of these companies have achieved board telecommunications—the number of composition near parity—a 50/50 split of corporate boards with women is larger than men/women on their boards: those without women on the board…and . NYSE listed Ingredion (4 women and 6 those numbers are trending upwards. men) Number of Women on IL Public Boards by Sector Note: In every sector, the number of boards with women is larger than those without…and trending upwards. SECTOR NO WOMEN 1 WOMAN 2 WOMEN 3 WOMEN 4+ WOMEN COMMODITIES 1. NASDAQ-Broadwind Energy 1. NYSE-ADM 1. NYSE-Integrys 2. NYSE-Exelon CONSUMER 1. NASDAQ-Cobra 1. NYSE-Brunswick 1. NYSE-Aptar Group 1. NYSE-McDonald's 1. NASDAQ-Ulta 2. NASDAQ-Sears 2. NASDAQ-Potbelly 2. NYSE-Walgreen's FINANCIAL 1. NYSE-CNA 1. NYSE-Fortune 1. NYSE-AJ Gallagher 1. NYSE-Allstate 1. NASDAQ-MB 2. NYSE-1st Industrial 2. NYSE-General Growth 2. NYSE-Equity Lifestyle 2. NYSE-Discover 2. NASDAQ-CBOE 3. NASDAQ-Atlas 3. NYSE-Inland 3. NYSE-Equity Residential 3. NYSE-Horace Mann 3. NASDAQ-QCR 4. NASDAQ-Calamos 4. NYSE-Kemper 4. NASDAQ-1st Clover Leaf 5. NYSE-Jones Lang 5. NASDAQ-1st Busey 5. NYSE-Old Republic 5. NASDAQ-1st Midwest LaSalle/JLL 6. NASDAQ-IF Bancorp 6. NYSE-RLI 6. NASDAQ-Morningstar 7. NASDAQ-Old 2nd 7. NYSE-Strategic Hotels 7. NASDAQ-Northern Trust 8. NYSE-Ventas 8. NASDAQ-Wintrust 9. NASDAQ-BankFinancial 10. NASDAQ-CME Group 11. NASDAQ-Golub Capital 12. NASDAQ-PrivateBank HEALTHCARE 1. NYSE-Landauer 1. NASDAQ-Akorn 1. NYSE-Hospira 1. NYSE-Baxter 1. NYSE-Abbott 2. NASDAQ-Addus 2. NASDAQ-Allscripts 2. NASDAQ-Catamaran 2. NYSE-Mead Johnson 3. NASDAQ-Horizon 3. NASDAQ-Merge 4. NASDAQ-Surgical Care 4. NASDAQ-Nanosphere 5. NASDAQ-Sagent INDUSTRIAL 1. NYSE-AAR 1. NYSE-AM Castle 1. NYSE-Acco Brands 1. NASDAQ-Kraft Foods 1. NYSE-Ingredion 2. NYSE-CF Industries 2. NYSE-Anixter 2. NYSE-Boeing 2. NASDAQ-Mondelez 3. NYSE-KapStone 3. NYSE-Caterpillar 3. NYSE-Federal Signal 3. NASDAQ-RR Donnelley 4. NYSE-Navistar 4. NYSE-Continental Materials 4. NYSE-Hillshire Brands 5. NYSE-Oil-Dri 5. NYSE-Deere 5. NYSE-ITW 6. NYSE-Sparton 6. NYSE-GATX 6. NYSE- John Bean Tech 7. NYSE-Stepan 7. NYSE-IDEX 7. NYSE-Tootsie Roll 8. NYSE-Titan 8. NYSE-Methode 8. NYSE-Treehouse Foods 9. NASDAQ-CTI Industries 9. NYSE-PCA 9. NYSE-United 10. NASDAQ-Freightcar 10. NYSE-Tenneco 10. NASDAQ- Lifeway Foods 11. NASDAQ-Fuel Tech 11. NYSE-USG 12. NASDAQ-Littelfuse 12. NYSE-WW Grainger 13. NASDAQ-Manitex 13. NASDAQ-Cabot 14. NASDAQ-MFRI 14. NASDAQ-Great Lakes 15. NASDAQ-Richardson Dredge 16. NASDAQ-Rubicon 15. NASDAQ-JB Sanfilippo 16. NASDAQ-Lawson 17. NASDAQ-LKQ 18. NASDAQ-Middleby 19. NASDAQ-Power Solutions 20. NASDAQ-Zebra IT 1. NASDAQ-Mattersight 1. NYSE-Envestnet 1. NASDAQ-InnerWorkings 2. NASDAQ-Paylocity 2. NASDAQ- CDW 3. NASDAQ-VASCO SERVICES 1. NASDAQ-Essex 1. NYSE-Orbitz 1. NYSE-DeVry Education 2. NASDAQ-Heritage-Crystal Clean 2. NASDAQ-Career Education 2. NYSE-Hyatt Hotels 3. NASDAQ-HUB 3. NASDAQ-Echo Global 3. NYSE-Navigant 4. NASDAQ-Stericycle 4. NASDAQ-FTD 4. NYSE-Office Depot 5. NASDAQ-Groupon 5. NASDAQ-Heidrick & 6. NASDAQ-Huron Struggles 7. NASDAQ-MYR Group 6. NASDAQ-United Stationers 8. NASDAQ-SigmaTron 9. NASDAQ-SP Plus TELECOM 1. NYSE-US Cellular 1. NYSE-Motorola Solutions 2. NASDAQ-Consolidated 2. NYSE-TDS Communications 3.