After the Crisis: Women Taking the Reins in the Financial Sector

By Tina Vasquez (Los Angeles)

According to Catalyst’s Census of Women Corporate Officers and Top Earners, women are still struggling to attain positions of power and in some cases, the number of women in top-ranking, top-earning positions has declined. For example, women currently only hold 6.2 percent of top-earning positions at the largest companies in the United States, though in 2007 that number was 6.7 percent. Catalyst also found that the number of companies with no women corporate officers has increased from 74 to 75 percent in 2008.

These numbers may seem discouraging, but things may change as a result of the ever-expanding global financial crisis. In an unforeseen twist of fate, a revolution of sorts has occurred in an industry that has long been considered a men’s club: the financial sector. It’s no surprise that the financial organizations that led to the economy’s downward spiral were male dominated. One only needs to think back to February; nearly every CEO or executive that appeared before Congress to discuss the bank bailouts was male. This has led many to wonder if more women in boardrooms would have led to less risk-taking behavior or if the financial crisis would have happened at all- or at least as severely as it has played out.

Whether or not women would have taken a more cautious approach can never be known for sure, but one thing is certain: women are playing a large role in the rescue. Virginia Clarke believes it is because banking has the most to offer women. Clarke has over twenty-five years of experience in the finance sector and was formerly as partner and head of global diversity at Spencer Stuart. “Banking seems to be where the gains are the greatest within the financial services industry. It could be that women have long held customer-facing roles in banks as tellers and were able to move up the operations ranks into credit, finance, and other functional areas over time, acclimating their male counterparts along the way,” Clarke said.

Though that may be true, Melanie Donaghy, Wells Fargo Marketing Strategist, Internet Services Group, also believes it has something to do with “less historic negative bias” in the financial sector. “Women have been in the financial sector for at least a century, such as Cassie Hill and Tilla Patterson, who were at Wells Fargo in the 1800’s. It’s one of the few industries that has welcomed women,” Donaghy said.

As always, the climb to the top won’t be easy for any woman, not even those who are dedicated, knowledgeable, and have the experience and know-how necessary to reach a top-ranking position. Much of the problem has to do with perception. According to Etta Money, President and CEO of InCharge, a non-profit agency, the problem may be an issue of grooming as well. “From the time they are young girls women are not encouraged to go into the business, science, and math sectors. The socialization process in our country has been to guide girls into more ‘traditional’ careers that are typically female-dominated, such as health services, teaching, etc.,” Money said.” Long-held perceptions of women have always been a hurdle for those seeking high-ranking positions in banks and other financial institutions. “So many times women are overlooked for higher-level positions because they are considered to be too ‘soft,’ Money said. “And when they are strong, women are considered to be too harsh or unfeeling.”

On the flipside, a woman’s perception of corporate American can be the one thing holding her back from achieving a high level of success in the banking industry. One of the largest barriers facing women could very well be themselves. “Many women come from entrepreneurial backgrounds and don’t know of –or perhaps believe in- the breadth of opportunities, commitment to work/life balance, and ongoing personal development available in corporate America. There are still industries where women are not treated as equals, but the banking industry in particular has taken great pains to level that playing field,” Donaghy said.

We obviously can’t go back in time ten years and prevent the financial crisis from occurring, but perhaps changing the faces of those serving as CEO’s and executives will make a difference- at least in the numbers of next year’s Catalyst findings. The global economy dictates that women are a valuable resource as employees and customers, but Clarke believes diversifying the workforce will drive diversity of thought and innovation. “Companies must adopt a new paradigm shift to attract and retain the best talent, regardless of gender, race, or ethnicity; not just to survive, but to thrive,” Clarke said.