Follows National Trend
CHICAGO, Jan. 22, 2006 - Women's advancement in the senior ranks of Chicago's
largest 50 public companies continues at a slow pace with some disturbing changes,
according to the eighth annual Chicago Network Census Report, released today. The
2005 report findings suggest that gains for women executive officers, board members
and top earners are consolidating around a smaller number of companies, with a
larger number of companies showing no women leaders, many for the first time.
"In our country's strained economic climate, we're seeing women lose ground in key
executive roles at the same time research continues to link corporate success and
larger numbers of women in leadership," said Lyn Corbett Fitzgerald, chair of this
year's Census. "We are concerned that if Chicago businesses are not taking advantage
of all the talent available, the success of our locally based enterprises will be
compromised."
The Chicago Network, an organization of the area's leading
professional women, has tracked the representation of women in key leadership
positions - executive officers, board members and top earners - since 1998. After
eight years of data, the Census shows that highly qualified women remain largely
untapped for leadership roles.
- No women CEOs, for the seventh time in eight years.
- A one percentage point increase in women executive officers to 15.4% as a
percentage of all executives, yet the number of companies that had no women
executives increased from 11 to 15 during the same period.
- A 1.2% percentage point increase in women directors to 14.2% after no increase
in five years, yet the number of women directors remains relatively constant; the
increase is due to the decrease in size of corporate boards. The number of companies
with no women on their boards has doubled to six from three.
- 35 companies have no women top earners, up from 32 in 2004.
- Three Chicago companies have no women directors, executive officers or top
earners - Anixter International Inc., Nalco Holding and USF Corporation - the same
number in 2004
For the first time, the Census looked at women of color data and found that the
percentages of executive officers and board members in Chicago - 1.4% of executive
officers and 2.8% of directors - are below the national figures in the latest
analysis of Fortune 100 companies. This year's Census results reflect a broader
national trend of no material change in the advancement of women in the executive
suite and boardroom. Other recent reports from across the country show similar
outcomes:
- Massachusetts reports increases in both the number of executive officers and
board members is less than one percentage point.
- Michigan has zero Fortune 500 companies with a top woman officer.
- Ohio results show that the number of women on boards has increased only because
the number of board seats has decreased.
Despite a growing number of studies pointing to the positive correlation between
women in senior management positions and higher company profitability, the numbers
are discouraging. At the rate of increase demonstrated over the last seven years, it
will take another 17 years before women represent 40% of executive officers and more
than 25 years before they represent 40% of directors in Chicago, according to The
Chicago Network.
"If we don't get women into the highest reaches of corporate
America, we're not going to change the paradigm for our children or our children's
children," said Chicago Network member and retired President and CEO of Equity Group
Investments, Inc. Sheli Rosenberg. "I think we tend to be myopic and don't
understand the benefits of what diversity brings." While the Census results are
troubling overall, those organizations that have taken the lead in tapping the best
talent show even greater increases. Noteworthy Company Performances:
- The best performers in this year's Census, with better than 23% overall
representation of women in all three categories measured, include Solo Cup; Sears,
Roebuck and Co.; CDW Corporation; Equity Office Properties Trust and Kraft Foods
Inc.
- Sara Lee Corporation had the highest number and percentage of women board
members since the Census began in 1998, with four women and 31%, respectively.
- Abbott Laboratories again had the highest number of women executives with eight
in 2005, the same number as last year.
For the first time, the Census also looked at 35 of the leading nonprofits. Compared
to the corporate sector, the numbers offer some reason for optimism: 94% of the
largest organizations have at least one woman director and 89% have at least one
woman executive. This suggests that leaders in the nonprofit sector are more
inclined than those in the corporate sector to tap all available talent.
The 2005
Census Report, including the Corporate Census and the new Nonprofit Census, can be
found online at www.thechicagonetwork.org. Data collection and analysis for the
Corporate Census was again conducted by Deloitte. Research on the Nonprofit Census
was compiled by the National Center for Charitable Statistics at the Urban Institute.
The Chicago Network, an organization of metropolitan Chicago's most distinguished
professional women, has been committed to the advancement of women since its
inception 27 years ago. Its more than 300 members have leading roles in academia,
the arts, corporations, entrepreneurial enterprises, government, law, health,
science and medicine, nonprofits, politics and professional service firms. The
Chicago Network is a founding member of the InterOrganization Network (ION), an
affiliated group of professional women's organizations in Atlanta, Boston, Chicago,
Detroit, Florida, Philadelphia and Milwaukee, who advocate increasing the number of
women serving in key executive roles in America's leading corporations.
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