10-Year Anniversary
2005 Catalyst Census of Women Corporate Officers and Top
Earners of the Fortune 500
Ten Years Later:
Limited Progress, Challenges Persist
ABOUT CATALYSTCatalyst is the leading research and advisory organization working with businesses and the professions to
build inclusive environments and expand opportunities for women at work. As an independent, nonprofit
membership organization, Catalyst conducts research on all aspects of womens career advancement and
provides strategic and web-based consulting services globally. With the support and confidence of member
corporations and firms, Catalyst remains connected to business and its changing needs. In addition, Catalyst
honors exemplary business initiatives that promote womens leadership with the annual Catalyst Award. With
offices in New York, San Jose, and Toronto, Catalyst is consistently ranked No. 1 among U.S. nonprofits focused
on womens issues by The American Institute of Philanthropy.
2005 Catalyst Census of WomenCorporate Officers and Top Earners of the
Fortune 500
Sponsors: DuPont
Heidrick & Struggles
2006 by CATALYSTNEW YORK 120 Wall Street, 5th Floor, New York, NY 10005-3904; (212) 514-7600; (212) 514-8470 fax
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Catalyst Publication Code D43; ISBN#0-89584-261-0
The 2005 Catalyst Census of Corporate Officers and Top Earners of the Fortune
500 marks the tenth year Catalyst has tracked women in Fortune 500 corporate
officer positions. While we celebrate this milestone, we find little to celebrate in
the data. Our Census demonstrates that between 2002 and 2005, the
percentage of corporate officer positions held by women increased by a total of
just 0.7 percentage points to 16.4 percent. This rate of increase is significantly
lower than we have seen in previous years, and it is echoed in equally low
increases in all other data we collected. In other words, progress has almost come to a standstill.
This standstill reveals that the vast majority of Fortune 500 companies have yet to understand the
compelling business case for diversity or to take meaningful actions to address it. We find this particularly
surprising since the economic impact of diversity in leadership has become increasingly evident as U.S.
businesses expand into new markets, cultures, and workforces across the United States and around the
world.
In this report, we describe many of the issues that support the business case and show corporate leaders
what they can do to make change in their organizations. As usual, we provide evidence in the form of data
from our rigorous Census of Fortune 500 corporate leadership. This year, however, we have taken several
new steps, including applying a new, more consistent definition of corporate officer, delving more deeply
into the multiple and intersecting effects of race/ethnicity and gender on access to top corporate positions,
exploring industry effects, and interviewing women corporate officers from companies that have shown a
sustained commitment to gender diversity in corporate leadership.
We have also added Viewpoints at the end of each chapter that draw conclusions beyond the data
examined in this report. These conclusions are based on other Catalyst research and our years of
experience working with diversity and inclusion in the workplace. They are meant to provide explanations
and answers to some of the questions raised by the research and to highlight factors that we believe have
contributed to the findings.
We hope the data presented here, the issues raised, and the conclusions we have drawn provide a clear
and cogent call to action to those who have the power to drive positive change for women and business.
With your leadership, businesses can break the standstill and reap the extraordinary benefits of diversity.
Ilene H. Lang
President
Catalyst
FOREWORD
Introduction and Key Findings 2
Chapter 1: Women Corporate Officers of the Fortune 500 6
Chapter 2: Access to Power 13
Chapter 3: Intersections of Race/Ethnicity and Gender 19
Chapter 4: Women Corporate OfficersDoes Fortune 500 Rank or Industry Matter? 24
Chapter 5: Voices of ExperienceInterviews with Women Corporate Officers 29
Chapter 6: Conclusions and Call to Action 36
Acknowledgments 40
Appendix 1: Methodology 41
Appendix 2: Titles of Women Corporate Officers, by Company with Fortune 500 Rank 43
Appendix 3: Number and Percentage of Women Corporate Officers, Ranked by 58
Company Revenue
Appendix 4: Fortune 500 Industries, Ranked by Percentage of Women Corporate 63
Officers
Appendix 5: Number and Percentage of Women Corporate Officers, by Fortune 500 65
Industry with Company
Appendix 6: Number and Percentage of Women Corporate Officers, by SIC Industry 69
with Fortune 500 Industry
Appendix 7: Number and Percentage of Women Corporate Officers, by State with 81
Company
Appendix 8: States, Ranked by Percentage of Women Corporate Officers 85
Appendix 9: Fortune 500 Companies with At Least One Top-Earning Woman Corporate 86
Officer: 122
Addendum Notes 89
Also by Catalyst 90
Catalyst Board of Directors
TABLE OF CONTENTS
1 For companies that verified, industries that lost corporate officers between 2002 and 2005 were computer and data services, diversified financials,hotels, insurance, mail, package, and freight delivery services, and medical products. Industries that gained corporate officers were food services,transportation, and publishing.
DEFINITION OF TERMS USED IN THIS REPORT
Corporate Officer: This year, for the first time, we restricted our Census to only those corporate
executives who were board-elected or board-appointed. In past years, through our verification
process, we allowed companies to self-define their corporate officers, which contributed to
inconsistencies across companies. By imposing a stricter definition of corporate officers, our goal was
to standardize data across companies and over time.
The total number of corporate officers fell 20.5 percent from 2002 to 2005.To assess whether our new
definition of corporate officers was responsible for this decline, we examined whether there was an
overall fall in the number of corporate officers reported between 2002 and 2005. We compared only
those companies that were in the Fortune 500 in both 2002 and 2005 and also verified data in both
years. Limiting the analysis to companies present in both 2002 and 2005 ensured that the decrease
in number of corporate officers was not attributable to companies new to the Fortune 500 ranking in
2005, or those 2002 companies that were no longer ranked. Restricting the analysis further to only
those companies that verified in both years allowed us to see if the verification process led to changes
in the numbers: If the change in the definition of corporate officer had driven the fall in the total
number of corporate officers counted, then this decline would have occurred for companies across all
industries and Fortune ranks.
Data analysis showed that the decline in the number of corporate officers between 2002 and 2005
was industry- and rank-specific. In particular, the top 300 companies lost corporate officers, while the
bottom 200 companies gained corporate officers. Furthermore, some industries showed an increase
in the number of corporate officers, while others saw a decline.1
Top Earner: Companies are required to publicly report their five top earners. In the cases in which a top
earner was not also a corporate officer, he or she was not counted.
Clout: Corporate officers with clout hold the highest titles at a company. The titles that Catalyst
considers clout are CEO, Chair, Vice Chair, President, COO, Senior Executive Vice President (SEVP), and
Executive Vice President (EVP).
Line: Line officers are responsible for a companys profits and losses. We determined if a corporate
officer was responsible for profits and losses based on the officers title and functional area.
Staff: Staff officers are responsible for the auxiliary functioning of the business. We determined if a
corporate officer was responsible for auxiliary functioning based on the officers title and functional
area.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 1
THE BUSINESS CASE
Catalyst counts women corporate officers and top earners of the Fortune 500 because we believe that
diversity in the highest echelons of corporate leadership is not only good for women, but also good for
business.
Our study The Bottom Line: Connecting Corporate Performance and Gender Diversity has shown that the
Fortune 500 companies with the highest percentages of women corporate officers experienced, on
average, a 35.1 percent higher return on equity (ROE) and 34.0 percent higher total return to shareholders
(TRS) than did those with the lowest percentages of women corporate officers.2 While this study did not
prove causation, it showed a strong correlation between companies that have diversified their senior
management and companies that performed well financially.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 5002
2 Catalyst, The Bottom Line: Connecting Corporate Performance and Gender Diversity (2004).
INTRODUCTION AND KEY FINDINGS
KEY FINDINGS
Women Corporate Officers and Top Earners
u In 2005, women held 16.4 percent of corporate officer positions, up just 0.7 percentage points from
2002.
u Women held 6.4 percent of top earner positions, up 1.2 percentage points from 2002.
u At the estimated growth trend for the past ten years (0.82 percentage points per year), it will take 40
years for women to reach parity with men in corporate officer ranks.
Women of Color
u Women of color held only 1.7 percent of corporate officer positions.
u Women of color were 1.0 percent of all Fortune 500 top earners.
Women in Line, Staff, and Clout Positions
uWomen were almost two and one-half times as likely to hold staff positions (71 percent) as they were
to hold line positions (29 percent).
u Women held 9.4 percent of clout titles, up from 7.9 percent in 2002.
u In 2005, eight Fortune 500 companies were led by a woman CEO, up from six in 2002.
Women Corporate Officers, by Company Rank and Industry
uThe percentage of women in any category measured did not vary systematically with Fortune 500 rank.
uWomen had greater percentages of corporate officer positions in industries where women were 49
percent or more of the total workforce (finance, insurance, real estate, retail trade, and services).
Furthermore, as customers, employees, and suppliers now come from all parts of the world, and the
demographics of the U.S. marketplace and employee base changes, successful companies need to expand
their traditional leadership to include people who can relate to the diversity of the global marketplace. A
diverse leadership team will also help companies attract more diverse employees and remove barriers to
their advancement. Companies that can proactively and successfully harness all of their available talent
will sustain significant advantages over competitors with more traditional leadership teams.
Research suggests that companies that recruit, develop, and advance diverse employees, including women,
make better decisions, produce more marketable products, and retain several key business advantages
over more homogeneous companies.3 Furthermore, we contend that companies that achieve diversity and
manage it well attain better financial results than other companies.4
THE CENSUS RESULTS
Counting the number of women in corporate officer and top earner positions allows us to track the
progress that the largest public companies headquartered in the United States have made in diversifying
their leadership. Over the last decade, many organizations have recognized the need to diversify their
employee base and leadership. Many have hired Chief Diversity Officers and implemented detailed
diversity and inclusion strategies. We applaud those companies.
Nevertheless, our 2005 Census shows that, in the last three years, growth in the percentage of corporate
officer positions held by women slowed dramatically. In 2005, women held 16.4 percent of corporate
officer positions, only 0.7 percentage points more than they did in 2002. Furthermore, the percentage of
corporate officer positions held by women of color stagnated at 1.7 percent.
The failure of Fortune 500 companies to add womenespecially women of colorto their corporate
leadership in the last three years highlights a startling gap between rhetoric and reality. These findings
seem to indicate that few companies have fully grasped how integral diversity is to attaining business
objectives in the current global business environment. We urge companies across the Fortune 500
spectrum to reconsider the business case for diversity and reassess their diversity goals and strategies.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 3
3 Rosabeth Moss-Kanter, The Change Masters: Innovations and Entrepreneurship in the American Corporation (New York: Simon and Shuster, 1983);Sarah Moore, Understanding and Managing Diversity Among Groups at Work: Key Issues for Organizational Training and Development, Journal ofEuropean Industrial Training, vol. 23, no. 4/5 (1999): p. 208-217; Poppy Lauretta McLeod, Sharon A. Lobel, and Taylor H. Cox, Ethnic Diversity andCreativity in Small Groups, Small Group Research, vol. 27, no. 2 (May 1996): p. 248-264; and Gail Robinson and Kathleen Dechant, Building aBusiness Case for Diversity, Academy of Management Executive, vol. 11, no. 3 (August 1997): p. 21-31.
4 Catalyst, The Bottom Line: Connecting Corporate Performance and Gender Diversity (2004).
WHY IS PROGRESS SO SLOW?
Through our research, we know that equal numbers of women and men senior managers aspire to top
positions, regardless of whether or not they have children under the age of 18 living at home with them.
We know that women and men employ the same strategies for business success. We know that work-life
quality issues affect men as much as they affect women.5 At the same time, women continue to surpass
men in higher education and women hold more than one-half of management and professional positions.
And yet, women struggle more than men as they climb the corporate ladder.
Why? Our research has found that women face three significant barriers that men rarely face: gender-
based stereotyping, exclusion from informal networks, and a lack of role models. These obstacles combine
to restrain women from top positions by pigeonholing their talents, restricting access to essential
information, and discouraging their ambitions.
Women will only advance to the highest positions in large numbers when these barriers are removed from
their career paths. We encourage all organizations to examine the workplace policies, practices, and norms
that keep these barriers in place, and then work to change them.
HOW CAN COMPANIES IMPROVE DIVERSITY?
In 2005, the average Fortune 500 company had 22 corporate officers; 3.6 of them were women. Fully 75
percent of these companies did not have any women corporate officers earning one of the five highest
salaries at their company. How can companies go beyond this minimal level of diversity and reach the
numbers that will show genuine commitment to a variety of perspectives, ideas, and backgrounds?
CEOs and top leadership must recognize the strong business case for integrating diversity into a global
business strategy. Once the business case has been defined, appropriate initiatives and measures can be
implemented to achieve the goals set out by the business case.
CEOs must then communicate the business case to management, board members, shareholders, business
partners and suppliers, and employees. They must demand full commitment and accountability from all.
They must implement cultural changes that will encourage managers to recruit, develop, promote, and
track diverse talent. They must celebrate diversity as a better way to conduct business.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50045 Catalyst, Women and Men in U.S. Corporate Leadership: Same Workplace, Different Realities? (2004).
PROGRESS IS NOT ASSURED
This Census shows progress for women cannot be taken for granted. The dramatic decline in growth is
highly worrisome and could indicate that many companies have succumbed to the comforts of tokenism.
Gender diversity is not achieved when there are almost five men corporate officers for every woman.
Companies need to redouble their efforts to enforce a meritocracy that is blind to gender and other
differences that unfairly advantage certain groups over others. When employees know they will be judged
solely on their merits and resultsnot stereotypic assumptions based on their appearancethey will all
make greater efforts to succeed. As a result, companies themselves will be more successful.
Companies therefore have a responsibility to their employees, shareholders, customers, suppliersand
societyto look for and support the most talented workforce possible, regardless of gender, color, or any
other difference from the historical norm. The data in this report argue for a vigorous re-evaluation of
current diversity goals, strategies, and outcomes. Without such action, it seems probable that growth in
gender diversity will continue to stall and both organizations and women will lose.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 5
WOMEN CORPORATE OFFICERS
In 2005, women held 1,783 (16.4 percent) of the 10,873 corporate officer positions at Fortune 500
companies.6
Figure 1: Percentage of Fortune 500 Corporate Officer Positions Held by
Women, 2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 5006
6 This year, Catalyst used a new, more precise definition of corporate officer. In previous years, Catalyst allowed companies to define who theircorporate officers were. This year, Catalyst only counted corporate officers who were either board-elected or board-appointed. Bias tests showedthat the resulting change in definition did not appreciably alter the numbers of women and total corporate officers identified. See Appendix 1 orpage 1 for more information.
CHAPTER 1: WOMEN CORPORATE OFFICERS OF THEFORTUNE 500
KEY FINDINGS
u In 2005, women held 16.4 percent of corporate officer positions, up just 0.7 percentage points from
2002.
u In the last three years, average growth in the percentage of corporate officer positions held by
women fell dramatically to 0.23 percentage points per year, the lowest yearly gain in the past ten
years.
u At the ten-year estimated growth trend of 0.82 percentage points per year, it will take 40 years for
the number of women corporate officers to equal the number of men corporate officers.
uWomen of color held only 1.7 percent of corporate officer positions.
uWomen held 6.4 percent of the top earner positions, up 1.2 percentage points from 2002.
83.6%(N=9,090/10,873)
16.4%(N=1,783/10,873)
Women Men
In 1995, when Catalyst first collected census data, women held 8.7 percent of all the corporate officer
positions.
Figure 2: Percentage of Fortune 500 Corporate Officer Positions Held by Women, 1995-20057
Between 1995 and 2005, the percentage of corporate officer positions held by women grew at an
estimated trend of .82 percentage points per year.8 Higher-than-average growth occurred between 1995
and 1996 and between 2000 and 2002. Changes in growth did not appear to be related to changes in the
business cycle. During the last recession, between March, 2001, and November, 2001, the average yearly
growth in the percentage of corporate officer positions held by women was an uncharacteristically strong
1.6 percentage points.9
Table 1: Change in Percentage of Corporate Officer Positions Held by Women, 1995-2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 7
Year
8.7%
10.0%
10.6%
11.2%
11.9%
12.5%
N/A
15.7%
N/A
N/A
16.4%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Percentage of Corporate OfficerPositions Held by Women
1.3
0.6
0.6
0.7
0.6
1.6*
1.6*
0.23**
0.23**
0.23**
Change in Percentage
*Change in percentage averaged over two years (15.7-12.5)/2**Change in percentage averaged over three years (16.4-15.7)/3
8.7%
35%
30%
25%
20%
15%
10%
5%
0%1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
10.0% 10.6% 11.2%11.9% 12.5%
N/A
15.7%
N/A N/A
16.4%
7 In 2001, 2003, and 2004, Catalyst did not conduct a census of corporate officers and top earners.8 Derived from the slope of the percentage of women corporate officers plotted against the yearly time trend.9 In 2001, 2003, and 2004, Catalyst did not conduct a census of corporate officers and top earners.
At the estimated growth trend for the last ten years (0.82 percentage points per year), it will take 40 years
for women corporate officers to match men.10
Figure 3: Projected Growth of Women Corporate Officers, 1995 to 2046
Concurrent with the minor increase in the percentage of corporate officer positions held by women was a
steep decline in the number of total corporate officersfrom 13,673 in 2002 to 10,873 in 2005. While the
total number of corporate officers fell 20.5 percent in the last three years, the total number of women
corporate officers fell by a smaller 16.7 percent in the same time period.
Table 2: Number and Percentage of Women and Men Corporate Officers, 1995-2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 5008
1990 2000 2010 2020 2030 2040 2050
60%
50%
40%
30%
20%
10%
0%
.82 Growth Rate
Year
11,241
13,013
11,101
11,022
11,681
12,945
N/A
13,673
N/A
N/A
10,873
15.8%
-14.7%
-0.7%
6.0%
10.8%
N/A
5.6%
N/A
N/A
-20.5%
979
1,302
1,173
1,234
1,386
1,622
N/A
2,140
N/A
N/A
1,783
33.0%
-9.9%
5.2%
12.3%
17.0%
N/A
31.9%
N/A
N/A
-16.7%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Total Number
Corporate
Officers
Percentage
Change
Corporate Officers
Total Number
Women Corporate
Officers
Percentage Change
Women Corporate
Officers
Total Number Men
Corporate Officers
Percentage
Change Men
Corporate Officers
10,262
11,711
9,928
9,788
10,295
11,323
N/A
11,533
N/A
N/A
9,090
14.1%
-15.2%
-1.4%
5.2%
10.0%
N/A
1.9%
N/A
N/A
-21.2%
10 Derived from the slope of the percentage of women corporate officers plotted against the yearly time trend.
The average Fortune 500 company had 21.8 corporate officers and 3.6 women corporate officers. As Figure
4 shows, however, more than one-half of the Fortune 500 had fewer than three women corporate officers.
Figure 4: Number of Companies with Zero, One, Two, and Three or
More Women Corporate Officers, 2002 and 2005
WOMEN OF COLOR CORPORATE OFFICERS
In 2005, women of color held 1.7 percent of all corporate officer positions at the 327 companies for which
we had race/ethnicity and gender data.11
Figure 5: Percentage of Fortune 500 Corporate Officer Positions
Held by Women of Color, 2005
African-American women held 5.9 percent of all women corporate officer positions, Asian-American
women held 2.5 percent, Latinas held 2.1 percent, white women held 89.0 percent, and all other
racial/ethnic groups held less than 1 percent.12
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 9
Zero One Two Three or More
2002 2005
11 Data on race/ethnicity was not publicly available. Catalyst gathered this information from 260 companies that agreed to provide it. Data wascollected on men and women corporate officers of the following racial/ethnic groups: White, African-American, Hispanic, Asian-American, NativeAmerican, and Other. To calculate the percentages of women corporate officers of color, we included the 67 Fortune 500 companies that had nowomen corporate officers for a total of 327 companies used in this analysis.
12 To gather race/ethnicity data, Catalyst asked companies to provide the total number of women and total number of men corporate officers byrace/ethnic identity by the following categories: White, African-American, Hispanic, Asian-American, and Other.
250
200
150
100
50
0
71 67
96 98 95 99
238 236
98.3%(N=6,484/6,599)
1.7%(N=115/6,599)
All Other Corporate OfficersWomen of Color Corporate Officers
Figure 6: Race/Ethnicity of Non-White Women Corporate Officers, 2005
TOP EARNERS
Research documents that men executives continue to earn higher salaries than women executives.13 This
Census highlights the gender salary gap by showing that women corporate officers were far less likely than
men corporate officers to earn one of the five highest salaries at their companies. In fact, in 2005, only 145
(6.4 percent) out of 2,250 corporate officer top earners were women.14
Figure 7: Percentage of Fortune 500 Top Earner Positions Held
by Women Corporate Officers, 2005
In 2005, 378 companies had no women corporate officers among their top five earners, down from 393 in
2002. In 2005, the number of companies with at least one woman top earner was 100, up 3 from 2002.
The largest increase came in the number of companies with two women top earners, which grew from nine
companies to 21 between 2002 and 2005. However, just like in 2002, there was only one company with
three or more top earners who were women.15
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50010
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
5.9%
2.5%2.1%
0.2% 0.3%
African-American
Asian-American
Latina NativeAmerican
Other
Perc
ent
ofA
llW
omen
Corp
orat
eO
ffic
ers
93.6%(N=2,105/2,250)
6.4%(N=145/2,250)
Women Men
13Marianne Bertrand and Kevin Hallock, The Gender Gap in Top Corporate Jobs, Industrial and Labor Relations Review, vol. 55, no. 1 (October 2001):p. 3-21. See also Robert G. Wood, Mary E. Corcoran, and Paul N. Courant, Pay Differences Among the Highly Paid: The Male-Female Earnings Gap inLawyers Salaries, Journal of Labor Economics, vol. 11, no. 3 (July 1993): p. 417-441.
14 Companies publicly report their top five earners. In cases where the top earner was not also a corporate officer, he or she was not included in ouranalysis. We counted 2,250 top earners who were corporate officers in 2005.
15 See Appendix 9 for a list of companies with at least one woman corporate officer top earner.
Figure 8: Number of Companies with Zero, One, Two, and Three or
More Women Top Earners, 2002 and 2005 NE 500 COMPANIES WITH WOMEN BOARD DIRECTORS
CATALYST VIEWPOINT
Steep Declines in Growth Are Troubling
Women are substantially underrepresented in top management positions in Fortune 500 companies. Given
womens education levels, expertise, experiences, and commitment to the labor force, we expected to see
women progressing to the top levels and salaries in much greater numbers.
u Women participate in the U.S. labor force in unprecedented numbers today.16
q In 2004, women earned more than 57 percent of all four-year college degrees.17
q In 2004, women earned 41.1 percent of master of business degrees.18
q In 2004, women earned 34.8 percent of M.B.A. degrees.19
q In 2005, 37.2 percent of managers were women.20
q In 2005, women made up 50.6 percent of the managerial and professional workforce.21
tThese women have the expertise and capability to move into corporate officer positions.
q More women are working than ever before: 59.3 percent in 2005.22
qMothers with young children are more likely to be in the labor force today than they were 20
years ago.23
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 11
2002 2005
450500
400
350300
250200
150
10050
0
393 378
97 100
9 1 121
Zero One Two Three or More
16 Bureau of Labor Statistics, Current Population Survey, Annual Averages (2006). The number of women in the labor force has increased more than50 percent in the last 25 years.
17 National Center for Education Statistics, Digest of Education Statistics, 2005 (2006).18 National Center for Education Statistics, Digest of Education Statistics, 2005 (2006).19 The Association to Advance Collegiate Schools of Business (AACSB), Overview of U.S. Business Schools, 2004-2005 (2006).20 Bureau of Labor Statistics, Current Population Survey, Annual Averages (2006).21 Bureau of Labor Statistics, Current Population Survey, Annual Averages (2006).22 Bureau of Labor Statistics, Current Population Survey, Annual Averages (2006).23 Bureau of Labor Statistics, Employment Characteristics of Families, (June 9, 2005); Bureau of Labor Statistics, Women in the Labor Force: A
Databook (May 2005).
With this level of representation at work, why are only 16.4 percent of corporate officers women?
u Catalyst research suggests that many stereotypes hold women back from top positions.24 Common
stereotypic perceptions include:
q Women lack ambition.
q Women dont have the right work experience.
q Women dont have the leadership skills.
q Women dont have the problem-solving skills.
q Women wont make the necessary sacrifices.
u Other barriers Catalyst research shows contributing to womens slow advancement include:25
q Lack of access to informal networks
q Lack of mentors
q Lack of access to influential colleagues
q Lack of role models
q Lack of stretch assignments
q Limited flexible work arrangements
u This Census highlights the impact that stereotypes and other barriers continue to have on women
in corporate America, and demonstrates the need for increased attention to the elimination of these
barriers.
q An organization with barriers is not a meritocracy.
q Barriers waste valuable talent.
q Few companies are taking full advantage of all their employee talent.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50012
24 Catalyst, Women Take Care, Men Take Charge: Stereotyping of U.S. Business Leaders Exposed (2005). Catalyst, Connections that Count: TheInformal Networks of Women of Color in the United States (2006).
25 Catalyst, Women in U.S. Corporate Leadership: 2003 (2003); Catalyst, Women and Men in U.S. Corporate Leadership: Same Workplace, DifferentRealities? (2004).
WOMEN EXECUTIVES: IN LINE OR ON STAFF?
Occupational segregation by genderwomen and men working at different jobs, at different levels within
jobs, and in different industriesis a key and worldwide characteristic of employment.26 At every level of
work, within and across industries and places of employment, research suggests that men have greater
access to the best jobs.27 Once again, our Census shows that this gendered feature persists in the executive
hierarchy.
CEOs consistently tell Catalyst that line experience is essential to reaching the most senior levels of many
organizations. Corporate officers in line positions are responsible for an organizations profits and losses,
while those in staff positions support the auxiliary functioning of the business. In order to gauge gender
segregation in executive officer positions, Catalyst measured the number of women and men corporate
officers in line and staff positions.
In 2005, women held 10.6 percent of corporate officer line positions, while men held 89.4 percent of line
positions. This reflects a 0.7 percentage point increase for women from 2002. At the same time, women
held 21.1 percent of corporate officer staff positions, while men held 78.9 percent. These numbers also
reflect a 0.7 percentage point increase for women from 2002. Compared with their 16.4 percent share of
all corporate officer positions, women continue to be underrepresented in line positions and
overrepresented in staff positions.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 13
26 International Labour Office, Key Indicators of the Labour Market (Geneva, Switzerland: International Labour Office, 2004).27 Augusto Lopez-Claros and Saadia Zahidi, Womens Empowerment: Measuring the Global Gender Gap (Geneva, Switzerland: World Economic
Forum, 2005).
KEY FINDINGS
u Women held 10.6 percent of line positions, up 0.7 percentage points from 2002.
u Women held 21.1 percent of staff positions, up 0.7 percentage points from 2002.
uWomen were almost two and one-half times as likely to hold staff positions (71 percent) as they were
to hold line positions (29 percent).
u Women held 9.4 percent of the highest executive titles, up from 7.9 percent in 2002.
u Eight companies in the Fortune 500 were led by a woman CEO, compared with six in 2002.
CHAPTER 2: ACCESS TO POWER
Figure 9: Percentage of Line and Staff Corporate Officer Positions Held
by Women, 2002 and 2005
While men corporate officers were only slightly more likely to hold staff positions (52 percent) than they
were to hold line positions (48 percent), women were almost two and one-half times as likely to hold staff
positions (71 percent) as they were to hold line positions (29 percent).
Figure 10: Percentage of Line and Staff Corporate Officer Positions, by
Gender, 2005
WHO HAS CLOUT IN THE FORTUNE 500?
Catalyst found occupational segregation even within the highest executive ranks, where we know both
women and men are highly motivated, skilled, and successful. Women were significantly less likely than
men to hold the highest executive titles, including: CEO, Chair,28 Vice Chair, President, COO, Senior
Executive Vice President (SEVP), and Executive Vice President (EVP).
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50014
28Chair: highest-ranking director in a corporations board of directors. Vice Chair: the second-ranking director in a corporations board of directors whoalso served as corporate officer.
Women Men
Staff 2002
Staff 2005
Line 2002
Line 2005
20.4% 79.6%
21.1% 78.9%
9.9% 90.1%
10.6% 89.4%
20% 40% 60% 80% 100%0%
71%
29%
52%
48%
Line Staff
100%
80%
60%
40%
20%
0Women Men
In 2005, women held only 9.4 percent of these highest corporate titles, up from 7.9 percent in 2002.
Figure 11: Percentage of Clout Titles Held by Women, 2005
Only eight Fortune 500 companies (1.6 percent) were led by women CEOs, up from six (1.2 percent) in
2002. However, in 2005, there were no Fortune 100 companies led by women CEOs, down from three in
2002.29
Table 3: Women CEOs as of March 31, 200530
From 2002 to 2005, the percentage of clout titles held by women rose from 7.9 to 9.4 percentage points,
an increase of 1.5 points. This was double the 0.7 percentage point increase of women corporate officers
from 15.7 percent to 16.4 percent during the same period.
This means that women entered the highest ranks of corporate leadership at a faster rate than they
entered the overall corporate officer pool. This could have occurred for two reasons. First, companies may
have recruited women from outside their companies directly into clout titles. Second, companies could
have moved women up the executive ranks internally and at the same time replenished their lower-level
executive ranks with proportionally fewer women corporate officers from either within or outside the firm.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 15
29 The Fortune 100 women CEOs in 2002 were Carleton S. Fiorina of Hewlett-Packard Company (Fortune rank 28 in 2002); S. Marce Fuller of Mirant(Fortune rank 52 in 2002); and Patricia F. Russo of Lucent Technologies (Fortune rank 76 in 2002).
30 Eileen Scott resigned from Pathmark Stores on August 24, 2005; as of September 30, 2005, S. Marce Fuller was no longer CEO of Mirant as part ofthat companys reorganization; Brenda Barnes was named CEO of Sara Lee on February 10, 2005, but she did not officially become CEO until July3, 2005.
CompanyRank
Rite Aid
Xerox
Lucent Technologies
Avon Products
Reynolds American
Mirant
Golden West Financial
Pathmark Stores
128
132
247
278
321
424
435
467
Company Name
Mary F. Sammons
Anne M. Mulcahy
Patricia F. Russo
Andrea Jung
Susan M. Ivey
S. Marce Fuller
Marion O. Sandler
Eileen Scott
Name
2003
2001
2002
1999
2004
1999
1963
2002
Year WomanBecame CEO
Women Men
90.6%(N=2,159/2,383)
9.4%(N=224/2,383)
This trend extends back to 1997, when Catalyst first began to count clout titles. Between 1997 and 2005,
the percentage of clout titles held by women rose from 3.0 to 9.4 percent, or 6.4 percentage points. At the
same time, the percentage of women corporate officers increased from 10.6 to 16.4 percent, for an
increase of 5.8 points.
Table 4: Percentage of Clout Positions Held by Women and Men, 1997-2005
Although the data shows women moving into clout titles at a higher rate than into corporate officer
positions overall, even within clout titles occupational segregation is evident. Women held a higher
percentage of Senior Executive Vice President and Executive Vice President positions than they held of the
even more elite positions. At the same time, men held higher percentages of the highest titles than they
did of the lower titles.31
Overall, companies with higher percentages of women corporate officers also had higher percentages of
women in clout positions.32
16 2005 Catalyst Census of Women Board Directors of the Fortune 500
Year
1,728
2,184
2,249
2,488
N/A
2,412
N/A
N/A
2,383
1997
1998
1999
2000
2001
2002
2003
2004
2005
Total Number
Clout Title
Holders
51
83
114
154
N/A
191
N/A
N/A
224
Total Number
Women Clout
Title Holders
3.0%
3.8%
5.1%
6.2%
N/A
7.9%
N/A
N/A
9.4%
Women as a
Percentage of all Clout
Title Holders
1,677
2,101
2,135
2,334
N/A
2,221
N/A
N/A
2,159
Total Number Men
Clout Title Holders
97.0%
96.2%
94.9%
93.8%
N/A
92.1%
N/A
N/A
90.6%
Men as Percentage
of All Clout Title
Holders
31 In cases where an officer held more than one title (e.g., President and COO), only the highest title was counted.32Correlation coefficient between share of women corporate officers and share of women in clout positions was a positive and significant 0.487, which
means that every 1 standard deviation increase in the share of women corporate officers was associated with a 0.487 percentage point increase inthe share of women in clout positions.
Table 5: Percentage of Clout Positions Held by Women, by Title, 2002 and 2005
CATALYST VIEWPOINT
Occupational Segregation Persists
Throughout their careers, women are tracked into staff jobs that prevent them from acquiring the results
and knowledge that are necessary for the highest advancement and salaries.
uOccupational segregation, as evidenced by the line-staff gender data, reflects stereotypic
assumptions about:
q Womens work-life needs, desires, and capabilities
q Womens ambition
q Womens career choices
u These assumptions channel and dead-end women into staff positions.
q Whereas men may be promoted to staff positions to accumulate experience and network
capital before being promoted to higher line positions, women promoted into staff positions
are often left there without adequate and appropriate continued attention to career
development.
u Occupational segregation also contributes to the small number of women top earners.
q Women are less likely to be employed in higher-paying clout positions than men are.33
q When more women hold more line positions, there will be more women top earners.
u The more women corporate officers there are at a company, the greater the likelihood that women
will hold clout titles.
q When there are more women corporate officers, there will be more opportunity for diverse
hiring and promotion outcomes.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 17
33Marianne Bertrand and Kevin Hallock, The Gender Gap in Top Corporate Jobs, Industrial and Labor Relations Review, vol. 55, no.1 (October 2001):p. 3-21.
2002
85
132
502
155
93
69
1,376
2,412
Chair Only
Vice Chair
CEO
President
COO
SEVP
EVP
Total Clout
Total NumberClout
Positions
2005
71
110
502
139
76
57
1,428
2,383
2002
0
3
6
7
3
12
160
191
2005
0
7
8
4
2
7
196
224
2002
0
2.3
1.2
4.5
3.2
17.4
11.6
7.9%
2005
0
6.4
1.6
2.9
2.6
12.3
13.7
9.4%
Number Womenin Clout Positions
Percentage CloutPositions Held by
Women
u To stay competitive, global companies need women in clout positions who can actively shape
company strategies.
q To achieve success, a companys talent pool at the top must reflect employees, customers,
and suppliers.
q Few companies have taken advantage of the opportunities diverse employees can provide.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50018
WOMEN AND MEN OF COLOR CORPORATE OFFICERS
This year, for the first time, we more fully explored the multiple effects of race/ethnicity and gender by
counting men of color corporate officers in addition to women of color corporate officers. This new data
allowed us to assess the different impacts that race/ethnicity and gender may have on access to corporate
leadership positions. Because data on race/ethnicity was not publicly available, Catalyst gathered this
information from 260 companies that agreed to provide it. Data was collected on men and women
corporate officers of the following racial/ethnic groups: White, African-American, Hispanic, Asian-
American, Native American, and Other.34
At the 260 companies that verified race/ethnicity data, men of color held 6.4 percent of corporate officer
positions. African-American men held 2.6 percent of all corporate officer positions, Asian-American men
held 1.5 percent, and Latinos held 1.7 percent. In comparison, women of color at those 260 companies
held 2.0 percent of corporate officer positionsAfrican-American women held 1.1 percent; Asian-
American women held 0.4 percent, and Latinas held 0.4 percent.35
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 19
CHAPTER 3: INTERSECTIONS OF RACE/ETHNICITY ANDGENDER
KEY FINDINGS
uWomen of color held only 1.7 percent of all corporate officer positions at the 327 companies for which
we had race/ethnicity and gender data.
u Of the 195 Fortune 500 companies that verified race/ethnicity data in both 2002 and 2005, the
percentage of corporate officer positions held by women of color increased just 0.3 percentage points.
u Men of color held 6.4 percent of all corporate officer positions.
u Women of color corporate officers held just 1.0 percent of top earner positions.
34 To gather race/ethnicity data, Catalyst asked companies to provide the total number of women and total number of men corporate officers byracial/ethnic identity by the following categories: White, African-American, Hispanic, Asian-American, and Other.
35 Race/ethnicity analyses included only the 260 companies that verified race/ethnicity data. The totals include percentages for Native Americans andthose who did not identify a particular race (listed in Figure 12 as Other).
Figure 12: Race/Ethnicity of Women and Men Corporate Officers, 2005
For the 195 companies that verified race/ethnicity for our Censuses in both 2002 and 2005, the number of
women of color corporate officers grew by only 0.3 percentage points, from 1.8 percent in 2002 to 2.1
percent in 2005.36 More specifically, the percentage of African-American women corporate officers did not
change between 2002 and 2005, while the percentages of Asian-American and Latina women corporate
officers each rose 0.1 points.
Figure 13: Race/Ethnicity of Women Corporate Officers, 2002 and 2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50020
36For this time trend analysis, we used the 195 Fortune 500 companies that verified race/ethnicity data in both 2002 and 2005. In 2002, Catalyst didnot collect information on men of color.
Women Men
1.1%
2.6%
0.4%
1.5%
0.4%
1.7%
0.0%0.2%
0.1%
0.4%
African-American
Asian-American
Latina/o NativeAmerican
Other
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0%
2002 2005
African-AmericanWomen
Asian-AmericanWomen
Latinas Other Women Total Womenof Color
2.5%
2.0%
1.5%
1.0%
0.5%
0%
1.2%
0.4%0.3%
0.4%0.3%
0.1%0.0%
2.1%
1.8%
1.2%
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 21
WOMEN AND MEN OF COLOR IN THE WORKFORCE
In 2005, African-American women were 5.0 percent of the management and professional workforce,
Hispanic women were 3.3 percent, and Asian-American women were 2.6 percent.37 For African-American
and Asian-American women, these numbers were almost equal to the percentage of the total labor force
that these groups represent. For Latinas, however, the number was much lower.
This comparison shows us that for African-American and Asian-American women, barriers to corporate
officer ranks strengthen considerably at the transition from lower-level management jobs to executive
jobs. For Hispanic women, the barriers into management emerge at the entry to management positions.38
Men of color hold approximately 3 percent of managerial and professional workforce jobs across the three
major racial/ethnic groups.39 For African-American and Hispanic men, barriers to management positions
appear at lower-level management occupations. However, once African-American men are in
management, they are relatively well represented in corporate officer positions; Hispanic men continue to
face barriers as they attempt to ascend to the upper levels. Fewer barriers seem to appear for Asian-
American men until they reach the upper levels of management, at which point they stop advancing at
approximately the same rate as Hispanic men. In all of these cases, men are better represented at the
corporate officer level than are women.
Table 6: Women and Men of Color in the Workforce, 200540
Total Labor Force Management,Professional, and Related
Occupations
Corporate Officers
Women
African-American 6.0% 5.0% 1.1%
Asian-American 2.0% 2.6% 0.4%
Latina 5.2% 3.3% 0.4%
Men
African-American 5.4% 3.1% 2.6%
Asian-American 2.3% 3.3% 1.5%
Latino 8.0% 3.1% 1.7%
37Bureau of Labor Statistics, Current Population Survey, unpublished data (2006). Catalyst used the broader Bureau of Labor Statistics management,professional, and related occupations category to measure the percentage of women in the managerial workforce instead of the more narrowmanagement, business, and financial operations occupations because the former category includes both lawyers and accountants, which arepotential pipeline occupations to the executive level. Nevertheless, all women of color were still underrepresented when compared with thenarrower category, which does not include the woman-dominated teaching and nursing professions.
38Racial/ethnic differences in pre-labor market factors, such as education and family poverty, may underlie the occupational differences observed forLatinas.
39 Bureau of Labor Statistics, Current Population Survey, unpublished data (2006). African-American and Hispanic men were each 3.1 percent of themanagement and professional workforce, while Asian-American men were 3.3 percent. Men of all racial/ethnic groups, except white, were alsounderrepresented as corporate officers when compared with their percentage of the narrower management, business, and financial operationsoccupations.
40 Women and men of color labor force rates and management, professional, and related occupations rates are from the Bureau of Labor Statistics,Current Population Survey, Annual Averages and unpublished data (2006).
WOMEN AND MEN OF COLOR TOP EARNERS
Once in the corporate ranks, both women and men of color were much less likely than white women and
men to be top earners. At the 260 companies that verified race/ethnicity of top earners, women of color
held just 1.0 percent of top earner positions, while men of color held 4.1 percent of those positions.
Table 7: Race/Ethnicity and Gender of Top Earners, 2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50022
Race/Ethnicity
3
8
1
0
0
12
73
African-American
Asian-American
Latina/o
Native American
Other
Total People of Color
White
Number ofWomen
20
12
15
2
1
50
1,092
Number of Men
0.2%
0.7%
0.1%
0.0%
0.0%
1.0%
5.9%
Percentage ofWomen Top Earners
1.6%
1.0%
1.2%
0.2%
0.1%
4.1%
89.0%
Percentage of MenTop Earners
CATALYST VIEWPOINT
Growth for Women of Color is Stagnating
Multiple and intersecting barriers of race and gender continue to unfairly limit women of colors executive
management advancement.
u The negligible growth in women of color corporate officers seems to indicate that barriers identified
in previous Catalyst research are not weakening.41
q The concrete ceiling does not allow women of color to see themselves at the top.
q Lack of access to influential colleagues keeps women of color out of essential networks and
deprives them of new opportunities.
q Lack of mentors prevents women of color from obtaining the advice, connections, and
encouragement necessary to advance.
q Lack of role models discourages women of colors ambitions.
q Lack of high-visibility assignments prevents women of color from demonstrating their many
talents, and being recognized for them.
u There is a strong business incentive to hire, develop, and promote women of color.
q As customers, employees, and suppliers increasingly come from different parts of the world,
women of color who reflect the new demographics will have a significant advantage in
tapping into new markets, workforces, and supply chains.
q As birthrates decline in many parts of the world, it is imperative to take advantage of all
talented employees, not just white men.
q As global companies open offices in more countries, a diverse workforce that reflects the
local population will contribute greatly to maintaining a competitive position.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 23
41 Catalyst, Advancing African-American Women in the Workplace: What Managers Need to Know (2004); Catalyst, Advancing Asians in theWorkplace: What Managers Need to Know (2003); Catalyst, Advancing Latinas in the Workplace: What Managers Need to Know (2003).
WOMEN CORPORATE OFFICERS AND FORTUNE 500 RANK
The Fortune 500 list ranks companies by revenues. The data for this Census showed no clear relationship
between Fortune 500 rank and percentage of women corporate officers.
Table 8: Percentage of Women in Corporate Officer Positions, by Fortune 500 Rank, 2005
Further, no clear relationship was found between Fortune 500 rank and share of women top earners, or
women in line or staff positions.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50024
CHAPTER 4: WOMEN CORPORATE OFFICERSDOESFORTUNE 500 RANK OR INDUSTRY MATTER?
KEY FINDINGS
u Fortune 500 rank was positively related to the percentage of women with clout titles.
u Women had greater access to corporate officer positions in industries in which women were 49
percent or more of the total workforce (finance, insurance, real estate, retail trade, and services).
u The retail trade industry had the highest percentage of women top earners and women in clout
positions.
28.0
20.8
19.1
21.8
19.0
21.8
F1-100
F101-200
F201-300
F301-400
F401-500
F500 Average
Average NumberCorporate Officers
4.9
3.3
2.9
3.7
3.0
3.6
Average Number WomenCorporate Officers
17.5%
15.7%
15.3%
17.1%
15.9%
16.4%
Average PercentageWomen Corporate Officers
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500
Table 9: Percentage of Women in Top Earner, Line, and Staff Positions, by Fortune 500 Rank, 2005
25
Top Earners
Total Top Earners Number of Women Percentage of Positions Heldby Women
F1-100 453 28 6.2%
F101-200 461 28 6.1%
F201-300 447 33 7.4%
F301-400 455 27 5.9%
F401-500 434 29 6.7%
Total 2,250 145
F500 Average 6.4%
Line
Total Positions Number of Women Percentage of Positions Heldby Women
F1-100 1,352 151 11.2%
F101-200 836 70 8.4%
F201-300 775 73 9.4%
F301-400 1,021 129 12.6%
F401-500 860 90 10.5%
Total 4,844 513
F500 Average 10.6%
Staff
Total Positions Number of Women Percentage of Positions Heldby Women
F1-100 1,452 339 23.3%
F101-200 1,240 256 20.6%
F201-300 1,135 219 19.3%
F301-400 1,163 244 21.0%
F401-500 1,039 212 20.4%
Total 6,029 1,270
F500 Average 21.1%
However, Fortune 500 rank was positively related to the percentage of women in clout title positions:
Compared with the lowest ranked companies, higher-ranked companies had higher percentages of women
in clout positions. This was mainly a result of Fortune 100 companies having relatively large percentages
of women in Executive Vice President positions.
Table 10: Percentage of Women in Clout Positions, by Fortune 500 Rank, 2005
INDUSTRY
The data showed large differences in the numbers of women in top leadership positions in different
industries. Industries in which women were 49 percent or more of the workforce had higher-than-average
shares of corporate officer positions held by women.42 In the FIRE,43 retail trade, and services44 industries,
women accounted for 55 percent, 49 percent, and 61 percent of the total labor force, respectively,45 and
held 17.6, 19.9, and 19.3 percent of the corporate officer positions, respectively.
Table 11: Percentage of Corporate Officer Positions Held by Women, by Industry, 2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50026
571
521
490
435
366
2,383
F1-100
F101-200
F201-300
F301-400
F401-500
Total
F500 Average
Total Positions
70
47
45
34
28
224
Number of Women
12.3%
9.2%
9.2%
7.8%
7.7%
9.4%
Percentage of PositionsHeld by Women
Construction
FIRE
Manufacturing
Mining
Retail Trade
Services
Transportation and Utilities
Wholesale Trade
F500 Average/Industry Average
Industry
13.6%
17.6%
12.9%
9.6%
19.9%
19.3%
15.7%
16.2%
16.4%
Percentage WomenCorporate Officers
9.6%
55.3%
30.0%
12.8%
48.7%
60.5%
23.5%
28.7%
33.6%
Percent Women Employedin Industry
42 Women were at least 49 percent of the workforce in both 2000 and 2005 for these industries. Bureau of Labor Statistics, Current Population Survey,unpublished data (2001 and 2006).
43 FIRE stands for financial services, insurance, and real estate.44 Services include professional and business services, education and health services, leisure and hospitality, and other services (e.g., salons, dry
cleaners, funeral homes).45 Bureau of Labor Statistics, Current Population Survey, unpublished data (2006).
Women held a higher-than-average percentage of clout positions in the FIRE and retail trade industries.46
Table 12: Percentage of Women in Clout Positions, by Industry, 2005
The retail trade industry had the largest percentage of top earners who were women, followed by
wholesale trade. Women had the highest share of line positions in services, followed by retail trade and
then FIRE. Women were overrepresented in staff positions in all industries except mining.
Table 13: Percentage of Women Top Earners, Line, and Staff Positions, by Industry, 2005
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 27
Construction
FIRE
Manufacturing
Mining
Retail Trade
Services
Transportation and Utilities
Wholesale Trade
F500 Average/Industry Average
Industry
2.3%
12.3%
3.7%
5.0%
13.6%
8.1%
8.0%
7.7%
9.4%
Percentage Clout TitlesHeld by Women
9.6%
55.3%
30.0%
12.8%
48.7%
60.5%
23.5%
28.7%
33.6%
Percent Women Employedin Industry
Construction
FIRE
Manufacturing
Mining
Retail Trade
Services
Transportation and Utilities
Wholesale Trade
F500 Average/Industry Average
Industry
3.4%
6.4%
4.4%
2.7%
8.8%
6.8%
6.7%
8.4%
6.4%
Top Earners
6.7%
11.0%
6.8%
1.7%
15.4%
16.0%
8.9%
8.1%
10.6%
Line
18.5%
22.8%
17.9%
14.2%
24.4%
22.0%
20.2%
22.8%
21.1%
Staff
9.6%
55.3%
30.0%
12.8%
48.7%
60.5%
23.5%
28.7%
33.6%
Percent WomenEmployed in Industry
46 These industry advantages were not an artifact of company rank. In a regression with the percentage of clout titles held by women as the dependentvariable, there were significantly more clout titles held by women in the FIRE and retail trade industries even when Fortune rank was included inthe regression.
CATALYST VIEWPOINT
For Women in Executive Leadership, Fortune 500 Industry Matters
u Catalyst research has found that women managers in male-dominated industries suffer the effects
of gender stereotyping more than women managers in industries with more equitable distributions
of women and men employees.
q Men who report to a woman in male-dominated industries are more likely to perceive
women as inferior problem-solvers than men with women managers in other industries.47
uThe organizational culture of some industries may also present extra challenges to women in those
industries.
q Historical norms, expectations, and practices create and sustain barriers that prevent women
from advancing.
uCompanies in industries in which women represent at least 49 percent of the workforce (e.g., retail
trade, FIRE, and services) have successfully mirrored their customer bases.
q These companies have significant numbers of women employees, women managers, and
women corporate officers.
q As more women become middle managers and professionals, more women are making
business purchasing decisions; these decisions are often driven by diversity considerations
(e.g., corporate general counsel offices insisting that their outside law firms be more diverse).
uTwo primary motivations have led these companies to take serious actions to include women in their
leadership ranks.
q They want to address existing markets more effectively by better reflecting the population of
consumers.
q They want to expand into new markets with new demographics, and they need a more
diverse management team to understand and respond to these new markets.
u In industries in which women are not traditional employees (e.g., mining, construction,
manufacturing), forward-thinking companies have recognized that sustainability and being an
employer of choice depends upon diversity.
q Catalyst Award winners, such as BP p.l.c. and Shell, have been recognized for their diversity
initiatives.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50028
47 Catalyst, Women Take Care, Men Take Charge: Stereotyping of U.S. Business Leaders Exposed (2005).
WOMEN CORPORATE OFFICERS AT SUSTAINED-COMMITMENT COMPANIES
In stark contrast to a number of sobering statistics presented in this report, this chapter highlights the
achievements of a select number of Fortune 500 companies that have made solid and consistent progress
in placing women in corporate officer positions. These companies have maintained 25 percent or more
women corporate officers across multiple Catalyst Censuses since 1995. These sustained-commitment
companies have recognized and harnessed the power of diversity by including women in their top
corporate ranks. Moreover, they have implemented policies and procedures to ensure that women are well
represented at all levels of the corporation.
The sustained-commitment companies identified by Catalyst are:
25 percent or more women corporate officers for all seven Catalyst Censuses, 1995-2005
Avon Products, Inc.
Merck & Co., Inc.
Nordstrom, Inc.
PacifiCare Health Systems Inc.
Pitney Bowes Inc.
The Gap Inc.
25 percent or more women corporate officers for six of seven Catalyst Censuses, 1995-2005
Kelly Services, Inc.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 29
KEY FINDINGS
u Women corporate officers used a variety of strategies to achieve success within their companies,
including: being committed to building the corporate business; developing effective relationships with
coworkers; working well on teams; and learning from others within the corporation.
uMentors were a key factor in women corporate officers success.
u Women corporate officers dealt constructively with barriers and failures.
u There are several steps that sustained-commitment companies have taken, and that other companies
can take, to diversify corporate leadership positions.
CHAPTER 5: VOICES OF EXPERIENCEINTERVIEWS WITHWOMEN CORPORATE OFFICERS
LISTENING TO WOMEN CORPORATE OFFICERS
To understand the experiences of women corporate officers working for these sustained-commitment
companies, and to identify the steps these companies have taken to become leaders in this area, Catalyst
conducted in-depth interviews with ten women corporate officers about their experiences in corporate
leadership. This qualitative research had two objectives: First, we asked each woman corporate officer
about her career advancement and her experiences working for various organizations; and second, we
asked these women why their companies had demonstrated such a strong commitment to diversity in
corporate leadership and how this commitment was executed. Interviewing proved an excellent
methodology for these purposes because it provides access to the context of peoples behavior and
thereby provides a way for researchers to understand the meaning of that behavior.48
METHODOLOGY
From December, 2005, to January, 2006, Catalyst conducted in-depth interviews with ten women corporate
officers from five of the seven sustained-commitment companies named above. The interviews were
conducted over the phone and averaged 45 minutes in length. The companies from which the officers were
drawn represented a range of industries and company sizes, and the women interviewed brought diverse
and varied backgrounds and experiences to their companies.49
BECOMING SUCCESSFUL
The women corporate officers we interviewed, by definition, had achieved success at work. To better
understand how they became successful, Catalyst asked these women what they had done in their careers
to advance to officer positions while others had not. Responses were mixed, but one-half of the women
emphasized attachment to the company and a focus on the business. As one woman put it:
I really look at what drives the business, and contribute to what drives the growth of the
business.
Another woman concurred, stating:
Im very committed to achieving what you set out to achieve. And if you make a commitment
to the organizationto your peoplethat is truly a commitment. So that sort of focus and
resolve to make important things happen in an organization, I think thats one thing [that has
helped me advance when others have not].
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50030
48 Irving Seidman, Interviewing as Qualitative Research: A Guide for Researchers in Education and the Social Sciences (New York: Teachers CollegePress, 1991): p. 4.
49 Catalyst guaranteed confidentiality to the corporate officers interviewed for this research. Because of the relatively small number of women in thesample, Catalyst does not disclose identifying characteristics in relation to the women or quotations cited here.
In addition to focusing on the business at hand, almost one-half of the women corporate officers also
mentioned their ability to assemble effective teams and build solid relationships as key to their
advancement. One woman noted:
Ive been able to work effectively through people, to understand other perspectives, to be able
to build consensus, or at least [get people to] buy in to the right decisions, and then, over time,
to be able to manage people and lead an organization and get them committed to a vision.
Likewise, another woman stated:
Youre only as good as the people who work with you. So, I feel like my success is not only my
own ability, but largely the ability of the people Ive developed and created and nurtured around
me to make a great organizationnot just what I can personally do, but what we can do
together.
A few women corporate officers also named the ability to look and listen as another effective tool used
in their advancement. According to one woman:
I've always been a student, always recognizing that you can learn something from everyone
good things or not-so-good things. [Its] really just tapping into people who have succeeded and
have gotten good results and listening to how theyve done it.
Other strategies women corporate officers used to advance their careers included:
u building trust and demonstrating integrity;
u going above and beyond the assigned roles and responsibilities to develop new programs or make
recommendations for change or improvement; and
u dealing with barriers constructively.
WORK-LIFE QUALITY
We also asked the women corporate officers what choices, trade-offs, and changes they made to achieve
their success. In response, the women most often stated that they proved that work was a priority for
them, usually as it related to their personal lives. One woman stated:
I dont necessarily have the most balanced life. I wont say my identity is my work, but its
certainly a large part of what I do.
Several of the women emphasized this view and stated that in order to prove they were fully committed
to their jobs and their companies, they: sacrificed time with their families, and time for themselves; chose
not to have children; or immediately returned to work after the birth of a child. One woman mentioned
that she moved frequently, sometimes simply to retain her position, and at other times to advance her
career.2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 31
MENTORS AND CAREER ADVICE
When asked about career advice and discussions around career development and advancement, all of the
women corporate officers mentioned the presence of mentors who had supported them at various times
during their careers. The presence and support of these mentors was ubiquitous.
For these women, mentors were most often their current or previous supervisors, although some women
corporate officers turned to friends or colleagues for career advice. Regardless of the nature of the
relationship, it was clear that having a variety of mentors worked best for these women. As one woman
explained:
I dont have one-stop shopping ... I dont turn to the same people [for advice every time],
because I take a pulse and a calibration as to whos going to give me the most relevant
information for what I need to know, and theyre not always the same people.
As evidenced by the data, an array of mentors provided advice and critical information about corporate
norms and rules to these women. This support was critical in helping these women advance their careers.
LEVERAGING ADVERSE CIRCUMSTANCES
Catalyst also explored the barriers these women corporate officers encountered as well as failures they
experienced in their careersand the concomitant lessons that came with those experiences. The most
common theme that emerged from responses to this question was that of being passed over for
promotion. A few of the women corporate officers we interviewed named this as a failure or barrier they
had experienced. One woman told her story of this failure in the following way:
I think [one of the barriers] has been this sort of disease that a lot of companies probably
experience, where the person on the outside always looks a lot better than the people on the
inside that you know ... [My boss once] brought in [a man] at the same level as me, but then
there was a level to which I aspired to be promoted. [My boss] knew this, but he promoted the
newer person, who was completely undeserving of it And this was just not acceptable [to
me]. So, I sat down with [my boss], and I explained how this was affecting me, and I wanted
to know what I needed to do to get there. He laid out a project that he thought would be a good
one for me to take on. He said if I would accomplish that, then he would promote me. My code
word for the project was broomstick because I thought of it as bringing back the broomstick
of the Wicked Witch of the West. And thats exactly what happenedI brought back the
broomstick and I got the promotion. [The new guy] crashed and burned, and left.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50032
For another corporate officer, her failure to be promoted was not a result of the grass is always greener
logic. Instead, she was passed over for promotion in favor of a woman from her own company. By her
account:
I was crestfallen. I was like, What did I do wrong? You know, this is such an affront to me.
Should I leave? But I had a discussion with [my boss], and at the end of the discussion I said
to him, Well youve obviously made your choice And so I have two ways to handle this
news: I can either deal with it and move on and make it work, or I can leave. And Ill decide. I
chose to stay.
What is evident from this quotationand what the women corporate officers emphasized when
discussing how to deal with barriers and failuresis that barriers must be handled in a constructive way.
The experience of a woman of color corporate attorney illustrates this point:
Ill never forget the day I went to moderate a customer dispute. I was waiting for the
attorney to return from lunch, and I was sitting there with my two clients, two white guysI was
in the middle and they were on either sideand the lawyer walked in the door and said to the
salespeople, because he knew both of them, So, I thought you were bringing your lawyer? Well,
I chose to use that to my advantage [and consequently] he never regained his equilibrium. So, I
could have sat there and said, How dare you? I am the lawyer! And what I did was, I just waved
at him. I said, They brought me. And he never could regain his composure. Well, I settled that
very nicely. You know, it was a subconscious thinghe was embarrassed the entire meeting! So
I could sit there [and] let that sap my energy and choose to be really hostile, frankly, and instead,
I just chuckled to myself and said, Go ahead and underestimate me. I just used that to my
advantage.
As evidenced by the fact that all of these women have become corporate officers, it is clear that the
hurdles these women faced were just thatbarriers faced and overcome at a specific moment in their
careers. These barriers did not preclude their rise to the top of the corporation. Instead, these women
leveraged these moments to build and refine their leadership skills.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 33
WHAT WOMEN BRING TO THE TEAM
When asked about the ways in which their presence in leadership had affected the performance of their
companies leadership teams, some of the women corporate officers we interviewed said they were able
to use their leadership positions to influence others on the team,50 as well as to encourage the team to
address difficult issues in a pretty transparent and open way, as one corporate officer said. Some of the
corporate officers achieved these goals by being unfailingly candid and forthcoming, as one woman
declared of herself. Another said:
I think people [on the leadership team] are a little bit more open [because I am there]. I think
people want to know where they stand. People want to know how they're doing. People dont
want things to be sugarcoated, and as painful as some things may be, people respect and
appreciate honesty [Im] direct, but fair, honest, and respectful.
COMPANY PRACTICES AND GOALS: SUSTAINING COMMITMENT
A portrait of the experiences of women corporate officers at sustained-commitment companies would not
be complete without a look at the companies themselves. We asked women corporate officers about
particular acts, company policies, and practices that allowed these companies to be successful in
advancing women. Women corporate officers noted that to sustain growth of women in corporate
leadership, three basic requirements must be met.
1. Commitment across levels and time
[Advancing women] takes a serious commitment of fast-tracking, identifying high-potentials,
and you cant take it for granted You have to work hard at it, even in a company that does
have, by the numbers, a better track record It still is a serious commitment that needs to be
reviewed every year Whether its in promotions, whether its in compensation, whether its in
hiring, making sure we dont have a percent number in reality, but my theory is that it should be
even. Why? Because I think [the gender balance of the company] should reflect the population.
2. An inclusive culture that boasts women at all levels of the corporation
Its with the succession planning, looking at your early talent, your key talent, and moving them
through the grade levels to ensure you have women in leadership positions. So its an ongoing
process, and one that starts with women at lower levels and looks at how to bring them up into
higher levels, as well as looking for women outside the organization whom you can recruit.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50034
50 Catalyst research has shown that both women and men in corporations view men leaders as better at influencing upward. Interestingly, womencorporate officers here named influential communication as their primary strength with respect to the leadership team. While influencing othersdiffers slightly from influencing upward in that the former focuses primarily on peers, the fact that the women sampled here viewed their influenceas notable seems contrary to the perceptions of many women and men in corporate leadership. See Catalyst, Women Take Care, Men TakeCharge: Stereotyping of U.S. Business Leaders Exposed (2005).
3. Measurement and accountability mechanisms that allow companies to track womens
progress and that hold managers accountable for diversity goals
[It truly is] part of the DNA [Our CEO will] say, Where are your women on the leadership
team? [Once] in a foreign country, the comment was, We dont have to track that under the
law here. And [the CEOs] response was, I didnt ask you what the law requires. Im telling you
what [this company] expects.
CATALYST VIEWPOINT
Sustained-Commitment Companies Allow Women to Succeed
Sustained-commitment companies realize that diverse leadership is not just nice, but necessary for a
company to succeed and be sustainable.
u Most of these companies have diversity programs in place that reflect the major categories of the
Catalyst Award criteria:
q Business Rationale
q Senior-Level Leadership
q Accountability
qCommunication of Initiative
q Replicability
qOriginality
q Target Population and Measurable Results
u Catalyst Award winners realize culture change and results because they work at it over many years.
q They set stretch diversity and inclusion objectives consistent with their strategic goals.
q They monitor their diversity and inclusion numbers with the same rigor and serious
accountability as they use when monitoring their revenue, profit, and market-share numbers.
u Sustainable-commitment companies operate under a true meritocracy.
q These companies remove barriers preventing womens advancement.
qWhen barriers exist, women and others waste time, energy, and resources trying to remove
the barriers, effort that could be spent more productively benefiting the company.
qWhen barriers exist, women are in effect removed from the pool of talent from which
companies can choose their leadership.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500 35
The numbers in the 2005 Census of Corporate Officers and Top Earners of the Fortune 500 are bleak.
Although women did increase their share of corporate officer and top earner positions relative to 2002,
the increases were minimal and the decline in growth from previous Censuses was drastic. This decline is
surprising, considering that women accounted for 46.4 percent of the labor force, 34.8 percent of all
M.B.A. recipients, and 50.6 percent of the managerial and professional workforce.51 In addition, a large
number of companies have instituted diversity and inclusion policies that aim to increase the retention and
advancement of women.
Figure 14: The Catalyst Pyramid: U.S. Women in Business
This Census demonstrates that there is a considerable amount of work that needs to be done before
Fortune 500 companies become meritocracies. Few companies have been able to remove the barriers that
prevent women and other diverse employees from achieving the same successes as white men. Across all
Fortune 500 quintiles and industries, companies that harbor barriers to the retention and promotion of
women will miss opportunities that womens expertise, skills, and knowledge could bring to decision-
making processes. These lost opportunities will certainly lead to competitive disadvantages in the global
marketplace.
2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 50036
CHAPTER 6: CONCLUSIONS AND CALL TO ACTION
46.4%
50.6%
16.4%
14.7%
9.4%
6.4%
1.6%F500 CEOs
F500 top earners
F500 highest titles
F500 board seats
F500 corporate officers
Management, professional, and related occupations
U.S. labor force
Sources: Current Population Survey, Annual Averages, 2005; Catalyst, 2005 Catalyst Census of Women Board Directors of the Fortune 500
Catalyst, 2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500
Sources: Current Population Survey, Annual Averages, 2005; Catalyst, 2005 Catalyst Census of Women Board Directors of the Fortune 500
Catalyst, 2005 Catalyst Census of Women Corporate Officers and Top Earners of the Fortune 500
TheCatalyst Pyram
id: U.S.Wom
enin
Business
Sources: Current Population Survey, Annual Averages, 2006;Catalyst, 2005 Catalyst Census of Women Board Directors of the Fortune 500;Catalyst, 2005 Catalyst Census of Women Corporate Officers and Top Earners of the
Fortune 500
51 Bureau of Labor Statistics, Current Population Survey, Annual Averages (2006) and The Association to Advance Collegiate Schools of Business(AACSB), Overview of U.S. Business Schools, 2004-2005 (2006).
CALL TO ACTION
Gender diversity in the workplace is supported by a compelling business case that argues for the health
and sustainability of the organization. Certainly a 35.1 percent higher return on equity (ROE) would be very
attractive to any CEO.52 CEOs and senior leadership know they can create tremendous change in their
organizations by modeling and demanding desired behaviors. Its up to CEOs and senior leadership to take
the next steps.
1. DEFINE THE BUSINESS CASE FOR DIVERSITY AND INCLUSION
In the United States, demographics in the marketplace and employee base are changing dramatically.
In order to be successful, companies need to be an employer of choice. Companies that can attract,
retain, and promote diverse employees will expand the talent pool available to them at all levels. A
larger talent pool will mean a greater likelihood of success in the marketplace.
At the same time, new customers, employees, and suppliers now come from all parts of the world,
and it is important that leadership at companies with global presence reflect this reality. Breaking into
new markets, understanding different employee cultures, and negotiating with non-U.S. suppliers
often requires a deep knowledge of country-specific work styles, expectations, and practices.A diverse
leadership team is more likely to have this knowledge, and, therefore, success, than a homogeneous
team.
2. DEMAND DIVERSITY
Organizational change will only come when it is clear that CEOs and senior leadership believe
diversity is integral to the achievement of key business goals. CEOs must demand diversity and lead
with actions that demonstrate the business importance of diversity. A prime example of leading with
actions is for CEOs to demand and support diverse slates, diverse selection teams, and diverse
outcomes when executive positions are filled. Although Boards must approve all corporate officers,
we know that they generally support the candidates CEOs recommend. CEOs who recommend diverse
candidates to their Boards demonstrate their commitment to diverse leadership teams, and the rest
of the organization will take note.
3. BREAK THROUGH STEREOTYPES
Catalyst research shows that stereotyping of women is a key barrier to womens advancement. In
particular, men managers perceive themselves as much better problem-solvers than women
managers. However, meta-analysis of more than 40 studies on leadership shows there are few
differences between women and men in workplace behavior and style.53 Clearly, actions, results, and
merit should determine advance