THE 2020 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP Color Overall, women are making slow but steady progress into corporate leadership positions, but BIPOC women are being COVER ART BY NATALIE HAMILTON Blocked left behind. STKates2021.indd 1 3/22/21 3:07 PM ST. KATE’S | EXECUTIVE SUMMARY With a New Year Comes New Hope BY REBECCA KOENIG ROLOFF, President, St. Catherine University s we face forward board seats across public zational culture promote A from a challenge-lad- companies, the percent- inclusive approaches for en year, this year’s Min- age of women corporate women and BIPOC em- nesota Census of Women directors increased to the ployees? in Corporate Leadership highest percentage record- At St. Catherine Univer- report delivers a message ed in 13 years. sity, we are doubling down to inspire—which is what Nationally, we have bro- on our mission to educate we need to upshift our ken a barrier held for far women to lead and infl u- momentum. too long and installed our ence through key initia- There is hope in fi ndings fi rst woman and woman tives that integrate career like how, despite a global of color as vice president. development and leader- pandemic and signifi cant Additionally, this year’s ship training throughout loss in total available Congress has the highest the student experience, percentage of women rep- no matter where in their resentatives ever.1 higher education journey We are also seeing more students come to us. In women taking the helm partnership with the Man- in corporations. Fortune itou Fund, we are launch- magazine reported a record ing the Katie Leadership high number of women impact program to provide CEOs on the 2020 Fortune undergraduate students 500 list, including Wal- with an integrated array greens tapping Starbucks of leadership coursework, COO Roz Brewer, a woman applied learning, and pro- of color, as its new CEO. fessional activities to pre- The tides are shifting, pare them for leadership and we must take action positions. And to hold to create a tidal wave of us all accountable, change that makes a per- we are committing to manent transition to wom- expanding the Census en equitably holding to incorporate BIPOC leadership positions. women in leadership Not tomorrow, or as part of our research next year. Now. at a deeper level. How will you Our collective work, take action? Are as leaders, is to widen you sponsoring the path, strengthen the and encourag- bridges we have crossed ing women? Is ourselves so that the future your compa- not only follows, but it im- ny actively proves. This report shows building a how far we have come; we pipeline for know how far we have women to to go. • move into leadership positions? Does your 1 Pew Research Center (January 15, 2021). A record number of women are organi- serving in the 117th Congress. STKates2021.indd 2 3/22/21 3:08 PM Editor’s Note Throughout the 2020 Minnesota Census of Women in Corporate Leadership, we use the terms Women of Color Left Behind “ women of color” and “ B IPOC” ( B lack, Indigenous, and People of Women corporate leaders of color are lagging at Minnesota public companies. Color) interchangeably. BY REBECCA HAWTHORNE, PH.D., St. Catherine University, School of B usiness he global pandemic Ferry, 2020; McKinsey & pandemic. Securities and directors at Minnesota T pushed four times Co., 2020). Losing even one Exchange Commission public companies in- more women than men woman leader, whether a (SEC) fi lings revealed creased to 24.8 percent in out of the U.S. workforce company director or senior that Covid-19 impacted 2020, the highest percent- in 2020. Women most executive offi cer, shifts the the majority of Minne- age over the past decade severely impacted include gender balance of compa- sota public companies, and exceeding the national mothers, senior-level wom- ny leadership. though not uniformly. average of 22.6 percent en, and especially women How individual companies (2020WOB, 2020). Most of color, the group that IMPACT ON fared depended on factors striking, this increase in also has been historically MINNESOTA such as market sector women directors occurred left behind (McKinsey & Women have borne the and fi nancial profi le. In in the face of a signifi cant Co., 2020). The staggering brunt of the pandemic some cases, opportunities loss of available board exodus of women at all nationally and in Minne- arose that accelerated seats. Company depar- management levels dis- sota, though some more business transformation tures from Minnesota rupts women’s progress in than others. The annual and growth. Leadership (e.g., Mosaic Co. and TCF the workplace and threat- Minnesota Census of Wom- changes resulted. Financial Corp.) as well ens future advancements en in Corporate Leadership as board contractions fol- into corporate leadership. provides a snapshot of the BOARD GENDER lowing director retirement Experts fear the loss of status of women leaders in DIVERSITY or resignation resulted in these women will also re- the state’s largest 77 public INCREASES 29 fewer board seats (4.5 sult in the loss of decades companies as of June 30, Despite the pandemic, percent). Thirteen of the of gender progress (Korn 2020, six months into the the percentage of women largest 25 Minnesota pub- lic companies shrank their board size in 2020. In spite of fewer board seats on Women in Leadership: 1 3 - Y ear Trend smaller boards, Minnesota companies demonstrated 25% their commitment to gen- der diversity by appointing women to 46.5 percent of new director positions. 20% WOMEN OF COLOR LEFT BEHIND 15% Advancement of women, however, remained un- balanced. As in 2019, the surge of women director 10% appointments in 2020 benefi ted primarily white women. Women of color secured only four of the 5% 23 new women director positions, holding a total of 3.9 percent of board posi- 0% tions in Minnesota public 2008 2009 2010 2011 2012 2013 2014 2015 2016*2017*2018*2019*2020* companies. The majority of Minnesota Census com- % of Women Directors % of Women Executive Offi cers * 85 companies in 2016, 72 in 2017, panies (76.6 percent) do 74 in 2018, 76 in 2019, 77 in 2020, not have women of color 100 companies in all other years on their boards. stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2021 3 STKates2021.indd 3 3/22/21 3:09 PM ST. K ATE’S | EXECUTIV E SUMMARY New Directors Appointed to Minnesota Public Company Minnesota Public Company Minnesota B oards in 2 0 2 0 Directors 2 0 2 0 Executive Officers 2 0 2 0 Men of Color Men of Color 8 .1 % White Women 5 % White Women 2 0 .9 % 2 0 .4 % Men White Women Women of Color 5 3 % 3 8 .8 % Women of Color 3 .9 % 1 .6 % White Men White Men Women of Color 6 7 .1 % 7 3 % 8 .2 % Women of color lag officers in SEC filings) in promotion to manager with new skill sets are behind men of color, white Minnesota Census com- has historically served as coming from activist inves- women, and white men in panies fell to 22 percent. an inflection point, with tors, institutional inves- accessing board positions. Despite a modest increase women of color promoted tors, and state legislators Research documents the in the number of executive at significantly lower rates (Spencer Stuart, 2020). greater challenges faced by officer positions from 497 (12 percent) than men of Nasdaq filed a proposal women of color, particu- to 501, women executive color (18 percent), white with the SEC in December larly Black women, in cor- officers experienced a net women (26 percent), and 2020 to adopt new listing porate America (McKinsey decrease of three positions. white men (44 percent). rules that would require & Co., 2020). The intersec- Progress in advancing The percentages of white Nasdaq-listed companies tion of gender, race, and women to senior-level women and women leaders to disclose breakdowns of ethnicity shapes workplace executive officer positions of color decrease at each their boards by race, gen- experiences and dictates has stalled. subsequent level—senior der, and sexual orientation. leadership opportunities. Once again, women manager/director, vice Boards would be required Women of color face a leaders of color were left president, senior vice to have at least two diverse steeper, more solitary lead- behind. In 2020, only eight president, and C-Suite directors—one who ership climb. They receive of the 110 women execu- (McKinsey & Co., 2020). self-identifies as female less managerial support, tive officers (Section 16b) With Covid-19 pushing and one who self-identifies slower promotions, less across Minnesota public more women—particular- as either an underrepre- access to sponsorship and companies were women ly women of color—than sented racial minority or critical career opportu- of color, and they repre- men out of the workforce, LGBTQ —or provide an nities, and find fewer role sented only 1.6 percent even fewer will ascend to explanation why they do models in senior leader- of all executive officers in senior levels of leadership. not (Nasdaq.com, 2020). ship. They face more acute Minnesota Census compa- The rationale for this discrimination and are nies. As women of color DEMANDS FOR new rule rests on extensive more likely to have their comprise 20.3 percent of CHANGE research that identifies performance and judg- the general population in Demands to expand the associations between ment questioned. In spite the United States (U.S. diversity of perspectives diverse boards and better of these obstacles, more Census Bureau, 2020), in corporate leadership to financial performance women of color aspire to they remain significantly include more women, ra- and enhanced corporate top executive positions, a underrepresented in the cial and ethnic minorities, governance (Catalyst, prerequisite qualification ranks of Minnesota younger leaders, and those 2020).