In Good Company

Investing in Women Makes Good Business Sense

By Susan H. Burnell

The Forbes 100 Most Powerful Women list (October 25, 2010) compared the stock performance of 26 companies headed by women to the overall market and found that women-led companies outperformed the rest by an average of 28%.

Yet the gender gap persists at the top. Women only account for about 6% of the most senior jobs at publicly held U.S. corporations. So what is being done to give women the leadership and voice that will strengthen corporate and financial institutions?

The Financial Women’s Association(FWA) is a nearly 1,000-member organization that has been guiding women leaders since 1956. Today the FWA delivers the skills, networks and access to leadership that women in business need to succeed. The FWA—whose corporate supporters include leading global financial institutions—offers its members a broad spectrum of nearly 150 programs each year featuring thought leaders, trendsetters and business experts. The FWA engages its community of corporate supporters in sharing best practices and promoting women leaders all along the career continuum from emerging to senior executive positions.

“Visionary companies are appointing women to corporate boards, supporting the career trajectories of top women executives and managers, and demonstrating that there is a solid business case for women’s participation in corporate leadership,” says Susan Ganz, Financial Services Professional at the Center for Wealth Preservation and 2010–2011 President of the FWA. “Women are a dynamic part of the workforce, and including their voices expands a company’s ability to compete in the global arena.”

“What we’re seeing is that the ROI is higher the minute you have more women on a corporate board, and that one woman is not enough,” says Lily Klebanoff Blake, President of Klebanoff International and a past FWA President.

Speeding the Pace of Progress

While the presence of women at the highest levels of major corporations has ticked upward over the last decade, progress is slow. Women are still vastly underrepresented in the executive ranks and on corporate boards, and advocates for women’s leadership report that companies that fail to develop talented women run the risk of falling behind more forward-thinking firms.

The Catalyst 2010 study, Targeting Inequity: The Gender Gap in U.S. Corporate Leadership, reports that women comprise nearly half of the U.S. labor force, earn 57% of bachelor’s degrees and 60% of master’s degrees, and control or influence 73% of consumer decisions in America. Yet the 2009 study found that women made up only 6.3% of executive-officer, top-earning positions within the major public corporations surveyed.

The most recent FWA100® report, which surveyed major metropolitan New York corporations, echoes the findings of the Catalyst study, concluding that the number of women in board and executive positions increased only marginally or decreased in 2009 compared to the 2008 study.

“The FWA100 study gets the dialogue going about the need for organizations like the FWA, which advocate for women in corporate board rooms and executive decision-maker roles, and equip them to succeed in those roles,” says Blake.

Empowering Leaders In the Financial World

By connecting with professional associations, women are finding female role models outside their own organizations, enabling them to build skill sets and create their own career paths. The FWA demonstrates the power of an active community of high-achieving professional women.

Diane E. D’Erasmo is Executive Vice President, Commercial Banking for HSBC Bank USA, N.A. Involvement with the FWA has been part of her career strategy for more than 25 years. For the last three consecutive years, she has been named among the “25 Most Powerful Women in Banking” by U.S. Banker Magazine. D’Erasmo now co-chairs the FWA’s Executive Leaders Committee.

“HSBC is committed to initiatives that support the development of our diverse employee population,” D’Erasmo says. “The FWA’s programs offer our employees a wide range of resources for career development, networking and community service. My involvement at the leadership level provides opportunities to expand my personal network with women who have similar career aspirations and successes.”

In a single month, the FWA’s calendar of professional development opportunities may include talks by prominent CEOs, updates on regulatory reform, career-transition seminars and mentoring opportunities. Partnerships with corporations and educational institutions bring an outstanding depth of content and contacts to each activity.

A focus on helping develop future leaders is another FWA strength. Its community programs include financial outreach activities, mentoring of young professionals, microfinance initiatives, scholarships and the promotion of entrepreneurship.

Best Practices: Intentional Focus on Career Development

“Women in corporate leadership, in any sector, bring a more diverse set of experiences and leadership styles,” says Kelly Mathieson, Managing Director, J.P. Morgan Worldwide Securities Services and a past President of FWA. “That translates to better and more informed decision making. The tangible benefits are there. Yet companies need to have an intentional focus on career development for women at all levels to realize those benefits.”

Studying best practices in leadership diversity at successful companies can help organizations get up to speed with their own initiatives. One example of a collaborative approach to professional development is J.P. Morgan’s internal Women’s Network. The company has cosponsored a number of FWA programs, which have allowed women at all levels to interact with FWA members.

Leadership and professional development opportunities are essential to Zurich Financial Services’ culture. “We offer all employees access to the Zurich Leadership Model competencies, and they are expected to demonstrate leadership behaviors,” says Cecilia Reyes, Chief Investment Officer and Member of the Group Executive Committee. “We have also founded a Women’s Innovation Network (WIN), which aims to support women in reaching their professional goals.”

“I think we all should take some responsibility to think about what we can do to give someone deserving an opportunity,” says WIN Steering Committee Member Jennifer Kyung, Head of Underwriting and Claims Quality and Training, Zurich North America. “WIN provides a way for women in the company to join a community and get help, networking, support and mentoring outside of their immediate team.”

HSBC also has an internal Women’s Network, which was founded in 2002. Its mentoring program provides women with opportunities to address development needs and career advancement with a senior mentor.

Addressing the Gender Gap in U.S. Corporate Leadership

CEOs and executives of major companies, upon reading the Catalyst 2010 study, offered the following suggestions:

• Don’t assume that the playing field has been leveled.
• Redesign systems to correct early inequities.
• Collect and review salary growth metrics.
• Build in checks and balances against unconscious bias.
• Make assignments based on qualifications, not presumptions.

Source: Catalyst 2010 Targeting Inequity: The Gender Gap in U.S. Corporate Leadership

Developing the Next Generation of Corporate Leaders

Energy and agility are key drivers right now in the workplace, says Mary Graham Davis, President and Founder of Davis Consulting Group and a member of FWA Executive Leaders Committee. “It’s critical for executives to be able to manage change, especially in the ups and downs of the financial services industry,” Davis notes. “They need team leadership skills and the ability to recruit and retain top talent. They also need to be considering succession planning so they can move forward. FWA can help them develop > and practice many of these capabilities.”

Davis is beginning to see movement in the ranks at the top. “Having a few more women in leadership roles doesn’t necessarily make the path easier for others, but it is encouraging,” she says. “FWA does a great job preparing women for the rigors of corporate leadership.”

For more information about the FWA and how to engage and empower women leaders, please contact fwaoffice@fwa.org and visit www.fwa.org.

FWA’s Global Reach

Among the FWA’s programs with the greatest impact for global firms are its international conferences and briefings with key government officials and industry leaders. “FWA was one of the first groups to go to China in 1977, and we have held successful conferences in India and Russia,” says Blake. The Spring 2011 conference delegation, led by Ganz, will travel to another of the BRIC nations, Brazil. The annual conference format allows participants to meet face-to-face with ambassadors, top business and finance leaders and other officials. Delegations experience the culture of each nation, and bring back to their organizations invaluable insights on economic and financial conditions and opportunities in each country. The FWA also serves as a role model when it travels abroad, educating corporations and organizations on how to empower and advance women.