The Face of Leadership™ BC SCORE CARD 2015 1 Foreword 2 Introductory comments by Tamara Vrooman 3 Executive Summary 5 Why Is This Important? 5 The Youth Perspective 6 An Interview with Tina Keeper 7 Methodology 9 Key Findings 10 Overall Results 11 Consumer Discretionary / Consumer Staples 13 Energy 14 Financials 15 Health Care 16 Industrials 17 Information Technology 18 Materials 19 Telecommuniation Services 20 Utilities 22 About Us THE FACE OF LEADERSHIPTM Authors Samantha Jo Simmonds, The Minerva Foundation for BC Women Michael Yow and Jeremy Chan, Corporate Knights Capital Design jimryce.com Michelle Cormack A Girl Named Fred Design + Communication Strategic Counsel Lyn Brown RESEARCH PARTNER FUNDING PARTNER IN-KIND PARTNER The Minerva Foundation for BC Women offers Corporate Knights Capital (CKC) is an investment unique programs for women to develop their advisory and research firm based in Toronto, leadership capacity and reach their full potential. Canada. CKC is a certified B Corporation and a From leadership programs to education awards, proud signatory of the United Nations-supported and culturally-relevant programming developed in Principles for Responsible Investment (PRI). CKC’s partnership with Aboriginal women, Minerva elevates mission is to accelerate the transition to long-term, the visibility, influence and contribution of women to sustainable capitalism by building world-class change the face of leadership in BC. Since 2001, investment portfolios for the global investment Minerva has directed more than $10,000,000 community. For more information about CKC, towards leadership and career exploration please visit www.corporateknightscapital.com. programming for women and girls. FOREWORD Follow the Leader STUDIES SHOW consistently that Score Card shows the BC results the study sample are serving on board gender diversity correlates with better fare as well as, or better than, chosen committees. business outcomes. Yet very little in the benchmarks on a sector-average basis. Global benchmarks on gender parity leadership landscape has changed in the Rather than applauding, Minerva and are modest and progress has been far past 10 years and at the current rate it major companies in the sample are too slow, and so this baseline study will be another 75 years before women leaning into action. has become a rallying call for company can expect professional parity. Key findings in the 2015 Score leaders. We can do better sooner–and Card illustrate the size of the gap to Our conversations have revealed it all starts with this metric. With an be addressed. Only four of the 28 some of the frustrations and challenges established benchmark for future companies in the sample are led by to progress and a strong desire to create comparison, we can track progress, female CEOs. Two companies have no a better opportunity for women. This, in identify case studies and learn from the women on their executive team or board turn, led to a CEO Pledge that converts leaders. of directors. There are no aboriginal promises of change into concrete actions The Face of Leadership™ BC Score women in the leadership ranks and only linked with our leadership development Card 2015, compiled earlier this year, one-third of the companies have a stated program for Grade 11 girls. We welcome examines the performance of 28 major policy to support women in leadership. you to join with us in changing the face organizations in British Columbia. These At the same time, the Minerva study of leadership in BC! companies were selected on the basis of surfaces bright spots. At Pacific Blue revenue and with consideration for BC’s Cross, 71% of senior management are Adine Mees, CEO real gross domestic product. women. More than 60% of the directors and Bob Elton, Board Chair In all but two sectors–industrials and on the WorkSafeBC Board are women. Minerva Foundation information technology – this Minerva Overall, 63% of the female directors in 1 THE face OF LEADERSHIP™ INTRODUCTION A Future without Blindspots WHEN THE Minerva Foundation fi rst world for us all. pages offer much less to celebrate. approached me about The Face of The subject of gender diversity Collectively, we need to go further – and Leadership™ BC Score Card project, I brings with it many myths, assumptions, we will. It begins with what appears shared the following story. One afternoon and subsequent emotions. The Face to be a small list of 28 companies. All I was driving with my then-young son, of Leadership™ BC Score Card is social change movements start with the talking about his math class assignment about real conversations based on real committed few. And this small group of on negative numbers. I was offering real information. Cultural change happens big economic players has the ability to life examples about the importance of through meaningful conversations – and infl uence real and lasting transformation. negative numbers and how I use them those begin here. To that end, we’re honoured to every day in my role as CEO of a fi nancial Vancity is a credit union with deep partner with the Minerva Foundation cooperative. He thoughtfully considered roots and history in the province on this critical work. Together, we will my comments for a bit and then turned of British Columbia. While we are change the face of leadership in BC. to me and asked: “Mom, can boys be committed to values-based banking as Because both men and women can be CEOs too?” a global movement, our business and CEOs – just ask our children. I fi gured my work was done. But our our community are here. With this report, work is far from complete. we’re pleased to see that BC scores As a business leader, I am committed higher than the national and international Tamara Vrooman to shifting unconscious bias – towards benchmarks for gender diversity in President + CEO, Vancity increasing female success at work, and leadership. We’re delighted to offer male success at home. More women congratulations to the corporate sector Sponsor of the 2015 Face of in positions of authority, and more men on this achievement. Leadership™ BC Score Card involved with family care, will result in Through an Aboriginal women’s lens, better decision-making, and a more just however, the numbers found within these “More women in positions of authority, and more men involved with family care, will result in better decision-making, and a more just world for us all.” THE FACE OF LEADERSHIP™ 2 EXECUTIVE SUMMARY W omen in Leadership WELCOME TO the Face of Despite these apparent advantages, Labrador, Northwest Territories, Nunavut Leadership™ BC Score Card 2015, a the presence of women on corporate and Ontario9 and all those issuers on snapshot of gender diversity in leadership boards varies substantially among the TSX are now required to disclose positions among major companies in different countries but remains low – from the representation of women on boards British Columbia. While this is not an 36% among Norwegian companies to and in senior management. Moreover, exhaustive assessment, it expands on 3% in Japan. Among the companies affected issuers are also required a preliminary study conducted in 2012 comprising the S&P500,5 a stock index to describe any policies and targets entitled the Face of Leadership in BC.1 of 500 large companies in the United regarding female representation in these Specifically, it looks at the proportion of States, female representation on the positions – or explain why, if there are board seats and senior management board of directors stood at 19%. none.10 Notable by their absence in this occupied by women, the number among In Canada, only 21% of the board initiative are the provinces of Alberta and them who are of Aboriginal descent, seats among the S&P/TSX60 companies British Columbia. the roles held by female directors were occupied by women,6 up from This Minerva Foundation report of and executives, and the existence of around 16% a year earlier.7 While this the British Columbia gender leadership supportive policies aimed at promoting rise is remarkable over a relatively short diversity landscape comes at a time women into leadership positions. period of time, much work is still needed when Canadian corporate boards and Gender diversity in corporate to raise that percentage going forward. senior management are at the threshold leadership is a hot topic both in Canada However, the future looks promising of significant transformation. It serves as and internationally. Why? Equality of for diversity among Canadian corporate the foundation to track the evolution of opportunity is in itself the most important boards and senior management teams. British Columbia’s largest corporations reason. There are also several business- Several initiatives to promote diversity on their journey towards improved related benefits. First, it was observed in corporate leadership have been gender diversity in leadership. The that companies with at least one female implemented both at the federal and hypothesis of this report is that as these board member tend to perform better provincial level over the past couple of leading companies close the gender financially compared to those that have years. Regulations in the province of parity gap, a positive ripple effect will be no women on their board of directors.2 Québec require that 50% of the board experienced across B.C. and beyond. As a talented workforce is becoming a among Québec Crown corporations be As importantly, this report is intended greater source of competitiveness, it was occupied by women.8 The Government to mobilize collective action and also found that companies with female of Canada recommended in June 2014 commitment by business, government board members are able to attract the that boards should aspire to 30% female and community leaders to put in best employees.3 Female presence directors by 2019 and that gender place programs and goals that will on the board of directors enhances balance be promoted through corporate improve gender diversity at all levels good governance, and contributes to programs and policies.