Do Powerful Women Have a Responsibility to Challenge the System?

By Melissa J. Anderson (New York City)

More control over work arrangements – that’s what 30% of senior-level Wall Street women said they would negotiate for besides money if they were starting a new job. This question was posed in a survey of over 550 high-level Wall Street women who were invited to attend last week’s Wall Street Women Forum®, a half-day, invitation-only conference.

Following more control over work arrangements, 27% said they would ask for responsibility for key clients, and 22% said they would request a seat on a key committee or task force. The findings of the survey fell in line with a key theme of the conference – women are seeking more power over their schedules, their workload, and their companies.

On the other hand, almost nine out of ten (87%) respondents agreed with the statement, “Men are paid for potential while women are paid for performance.” When the results of the survey were revealed, many women at the Forum nodded their heads in agreement. Women are working in a system that gives an advantage to men, simply for being men (although 19% said that while they agreed with the statement in general, it didn’t necessarily apply to them personally).

During her keynote discussion, Mellody Hobson, President of Ariel Investments and Chairman of the Ariel Investment Trust, said she felt senior-level women should be more vocal about the state of gender inequality on Wall Street – although she acknowledged that the economic environment makes that difficult.

“I’m a glass half full girl. I’m an eternal optimist and I feel like we’re going backward,” she said, referring to the disproportionate number of layoffs of top women during the economic crisis. “I think because of the crisis, everyone wants to keep our place and we’ve gotten a little quiet.”

She added, “We have to be more explicit about what’s at stake.”

Diversity on Wall Street

Research by Catalyst and other organizations has shown that diversity in the boardroom and in senior management improves a company’s financial performance. Everyone knows the studies are there, but few seem to be doing anything about it.

Hobson spoke passionately about the importance of diversity on Wall Street, explaining that companies do well when they make sure everyone is in the room. The best way to do that, Hobson continued, is to be champions for diversity, acknowledging that sometimes it will be a tough journey. But it requires that women take action, she said.

“As decision makers, what are we going to do about it?”

One thing senior women can do is to be sure a diverse individual is on the slate of candidates for open positions or board directorships. Another way is to embrace authenticity.

“I think it’s very important that we own femininity in the boardroom,” Hobson said. She explained how fears of tokenism drive women to try to act like men or blend in with them. “If you blend in, you don’t end up moving the needle,” she said.

Blending in also defeats the aims of diversity, Hobson continued. She acknowledged that speaking up for diversity can be difficult – taking a stand for what you believe in can be risky. Nevertheless, she said, women can own their own power by speaking up on issues that are important to them. She said, “I’m not trying to be hard on us. But let’s own what we can do.”

Challenging Times

Jane Newton, Founder of the Wall Street Women Forum and Partner and Wealth Manager at RegentAtlantic Capital, explained that many women on the Street are anxious about their careers, as well as the future of the industry.

“As women, many of us were distressed by seeing so many powerful women leaving the Street. I’ve found a common thread running through our conversations. What’s the new Wall Street going to look like? And how can I reinvent myself?”

She continued, “How do we continue to excel in turbulent times? Have the definition of leadership, power and influence changed?”

Newton said she believes that it may be time to make changes in how high-level women approach leadership. “If we continue to rely on the same tactics that made us successful to date, we’re at risk of falling behind.”