Articles

Calling Out the Mike Pence Rule

Promoted by Mike Pence, the rule to not be alone with a person of the opposite sex has become the latest battle cry for conservative political candidates. As more candidates jump on the bandwagon, where will it leave women who just want to do their job? And let’s be frank - women are the ones paying the price.

Privacy Concerns: Latest Excuse to Avoid Talking About Diversity

Apparently, some folks think “tell us a little about yourself” is asking for too much information from public company board members.

Because Board Diversity Isn't Enough

The 2019 proxy season is nearing its end, and gender diversity on boards is in the news. Companies are welcoming the media attention that comes their way thanks to nonprofit organizations and activist shareholder groups who advocate to increase the number of serving on corporate boards, but many of these same organizations fail miserably at gender equality inside the organization. Here are just a few I’ve run across recently.

Advancing to the C-Suite: The Most Damning Number

There’s only one demographic group whose representation increases as they climb the corporate ladder: white men.

JPMorgan Chase's Hypothetical

JPMorgan Chase’s 2019 proxy statement included an interesting hypothetical in its response to a shareholder resolution that would have required the company to provide a report on its global median gender pay gap.

As you can probably guess, the JPMorgan Chase board recommended that shareholders vote against this proposal. The company, like so many others, states that “[g]lobally, women at the Firm are paid 99% of what men are paid, taking into account factors that potentially impact pay” (an intriguing claim given that the “Firm” reported a 26% gender pay gap for its operations in the UK where such reporting is required by law).

Letterman's Next Guest Needs No Introduction

I happen to think the title of Letterman’s show is brilliant: My Next Guest Needs No Introduction with David Letterman. The show features in-depth interviews with guests who can be recognized by either their first or last name, individuals who truly need no introduction. Obama, Clooney, Malala, Jay-Z, and now Ellen.

We watched the Ellen segment recently, and it did not disappoint.

Skechers: Before You Buy Those Shoes

Skechers garnered a fair amount of press last week after announcing the appointment of their first-ever female board member: Katherine Blair, an LA-based corporate attorney with significant expertise in corporate governance matters.

Skechers, which generated $4.6 billion in revenue in 2018, has been a target for a number of organizations calling for greater gender diversity on corporate boards, including CalSTRS, 2020 Women on Boards, and Women2Boards. Gender diversity would seem like a no-brainer for a company like Skechers, which promotes its athletic and fitness brands with celebrity endorsements including Demi Lavato, Carrie Underwood, and Camila Cabello.

But the company, founded in 1992, hadn’t had a female board member until this month. The news of Blair’s appointment was met with enthusiasm by many who apparently breathed a sigh of relief that it was now OK to go back to buying Skechers shoes (assuming that lack of diversity stopped you from buying them before now).

But that response might be a tad premature, as it isn’t clear that Skechers has seen the error of their ways and plans to embrace gender diversity in the future. In fact, one could argue that the addition of Blair is really an attempt to get by with the least amount of gender diversity possible. It’s worth noting:

• Blair’s appointment, which came even after the 2019 proxy was distributed to shareholders, is undoubtedly a direct response to California’s Board Gender Diversity Law, which requires publicly traded companies headquartered in the state to include at least one woman on their boards of directors by the end of 2019 (by the end of July 2021, Skechers will have to have three women serving on their board). 

• In addition, Skechers has no women among their top compensated executives as well as no women among their executive officers, meaning this lone board member is the only woman in a senior leadership position anywhere in the company.

And finally, consider that the board expressed strong opposition to a shareholder resolution that would require an annual report on efforts to diversify the board, claiming that such reporting will “impose unnecessary administrative burdens and costs” on the organization (really - how much would it take to say you’re not doing anything you don’t have to?).

The shareholder resolution, filed by As You Sow, would require Skechers to provide an annual report at reasonable expense on steps Skechers is taking to enhance board diversity beyond current levels. The Skechers annual meeting takes place on May 23. (Update on May 31: No surprise - the shareholder resolution was defeated).

Note: Skechers brands include the TOMS knock-off, BOBS.

A Sacred Cow: Salary Negotiations

The topic was the gender pay gap, and the focus was salary negotiations. As in how to do it. Specifically, how to teach women to do it.

Here’s the problem: it’s not that women don’t know how to negotiate…

Nonprofit Boards: Maybe Not a Pipeline

I have to confess that I cringe a little every time I hear someone suggest that women who are interested in serving on a corporate board should seek experience on a nonprofit board as part of their journey.

Not that it’s necessarily a bad idea, but it may not be the best idea.

What gets measured...

What gets measured gets done.

It’s a popular catchphrase in business these days. All too often, however, it’s the inverse that accurately describes what takes place