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The Boston Club Event: Women Executives in New England’s Fortune 500 Companies

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By Liz O’Donnell (Boston)iStock_000002255927XSmall

Almost a full year has passed since we reported on the number of women executives and directors in Massachusetts’ 100 largest public companies and sadly, not much has changed. The Boston Club, an organization that provides networking and professional support for women in business, just issued its 2009 annual census of women directors and executive officers of Massachusetts public companies. The report is aptly titled, “Building for the Future or Stuck in the Past?” and can be downloaded here.

Women in the Commonwealth still represent just a small percent of directors (11.3%) and executive officers (8.6%). Those numbers show almost no growth in women directors and a loss in the number of women executives. In 2008, the census reported that 9.2 percent of the C-suite at the top public companies was filled by women. In fact, the number of women executives is the lowest it has been since The Boston Club began tracking the data in 2003. And although we reported last year that the percentage of companies with a woman among their most highly compensated officers also fell to its lowest point (24%), it dropped another percentage point this year to 23 percent. Also trending downward is the number of companies with no women at all among the executive officers. Of the 100 companies surveyed, 56 percent have all male executive teams. For women of color the data is even worse. Of the 697 executives across all 100 companies, just two are women of color. And only 1.2 percent, or 10 directorships, are held by women of color.

If there is any good news to be gleaned from the census it is the fact that a record number of companies (nine) have three or more women directors on their boards. And, there is opportunity in the future. Ninety-six percent of directors aged 72 or older are men and 93 percent of the directors who have served more than 15 years, are also men. As JoAnn Cavallaro, board member for the Boston Club, so succinctly says about the future, “Do the right thing.”

Recently, The Boston Club held a reception honoring New England companies with two or more women directors. The general feeling in the room was that despite the studies from organizations like Catalyst, Ernst & Young, Pepperdine University and others, showing a direct correlation between women at the top of an organization and a positive bottom line, businesses have reverted to old, familiar habits. Cavallaro referred to it as “regressive behavior.” Pointing out “the pipeline to the boardroom begins in the executive suite,” she urged businesses to “exert pressure to change the behavior and thinking. It’s obsolete,” she said. “Good governance and the lack thereof affects all of us.”

Stephanie Sonnabend, the president and CEO of Sonesta International Hotels Corp., says businesses have gone into a “hunker down mode.” Jean Tempel, with First Light Capital and a director with Sonesta, says adding women to boards is a sea change and will take time. “It will happen when business recognize their customer base is made up of more women.”

Deloitte LLP is an example of a firm that benefits from women leaders. The chair of Deloitte’s board is Sharon Allen. She also heads the global risk management committee. Allen keynoted The Boston Club reception and had this advice for women looking to break through the glass ceiling:

  • Don’t be afraid to talk about your accomplishments. Allen says she learned this lesson the hard way after being passed over for a promotion early in her career.
  • Step outside of you comfort zone. “When I took over an office with more people than my hometown, I was out of my comfort zone,” she says.
  • Look for a mentor and be a mentor. Allen says there are two kinds of mentors. Composite mentors are the people you want to emulate. Direct mentors are the people who coach you individually. Both are key.
  • Finally, Allen says organizations and women need to be clear about the things that can be improved to support women. “But men have to step up as well,” she says.

Massachusetts Fortune 500 Companies (women directors/executives)

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