News For You - February 2003

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Female Void at the Top
Great Publishing Pick!
Time for More Women on Corporate Boards
The Effects of Stress

Female Void at the Top

Currently, there are six female CEOs of Fortune 500 companies, the largest number ever. However, among the 24 best-paid executives working for these six CEOs, there are only three women. Women have made it to the top tier of the corporate ladder, but the rungs below are void of any other females. In an analysis of company filings with the Security and Exchange Commission by Catalyst, data shows that within all the Fortune 500 companies, 393 have no women among their top five executives.
There are several theories as to why women are so scarce in top executive positions. “Some executives, both male and female, say they have trouble finding women with the experience and qualifications needed for top jobs.” Another theory cites women’s tendency to choose career paths in staff positions, such as human resources or public relations, instead of line positions that have direct responsibility for the bottom line. Also, the lack of women at the top of big companies might be attributed to “lingering gender bias in Corporate America.” A fourth reason for women’s absence in top executive jobs deals with lifestyle choices that interfere with a career.
Although women currently hold few top executive positions, that is expected to change in the next decade with the continued rise and success of mid-level female executives now in their 40s. With the majority of top executive positions earned by those in their 50s, many anticipate a jump in the number of top female executives within five or ten years.

(USA Today, January 27, 2003).

Great Publishing Pick!

Barbara Marcus is president of Scholastic Book Publishing and Distribution, a Fortune 1000 company that finished second this year in the National Association for Female Executives’ (NAFE) list of the ‘Top 30 Companies for Executive Women’. Scholastic earned the honor because it is the only company where women like Barbara Marcus earn more than the men. Ms. Marcus proved her worth to the company and earned her high salary when she played a key role in getting Scholastic one very big book.
Arthur Levine, an editorial director at Scholastic reporting to Ms. Marcus, found a new book by an unknown and unpublished author at the Bologna Children’s Book Fair in Italy a few years ago. He called Ms. Marcus and told her he wanted to bid on the book. The price went much higher than anticipated and Mr. Levin asked Ms. Marcus if he could stay in the bidding. Ms. Marcus gave the ok saying, ‘If you really love it, go ahead and bid,’ and Scholastic won the book. The book was Harry Potter and the Sorcerer’s Stone that has made Scholastic a major player in the publishing industry.

(The New York Times, February 2, 2003).

Time for More Women on Corporate Boards

The Forum of Executive Women, a Fort Washington, PA women’s advocacy group, recently reported that women hold just 10.7 percent of board of director seats in the Philadelphia region’s largest 126 public companies. This figure falls short of the national average of 12.4 percent of female corporate board members. Although women are half of the workforce at 50.9% and make 85% of consumer decisions, they have little to no say in how companies are managed. With the absence of women on corporate boards, “too many companies are missing out on serving customers and shareholders better by tapping new voices… and they risk complacent group-think by always turning to the same pool of executive talent to devise corporate strategy, ensure financial accuracy, and safeguard shareholder interest.”
Diversifying corporate boards has been proven profitable and beneficial to companies. A November 2001 study by the Forum of Executive Women showed that the Fortune 500 firms with the best record of promoting women to senior positions, including board of director seats, were more profitable than those that did not.

(The Philadelphia Inquirer, December 29, 2002).

The Effects of Stress

University of Arizona psychologist David Almeida recently conducted a study on the level of stress experienced by males and females and the corresponding relationship to age. The national survey on adult well-being, supported by the MacArthur Foundation, reveals that women feel more stressed than men at every age. Between the ages of 25 to 59, women reported stress on 44% of days, whereas men reported 39% of the time. Also, according to the study, both genders enjoy a sharp decline in stress after the age of 60 - from age 60 to 74 women experienced stress on 32% of days and men on 25%.
Both men and women in the workforce experience comparable amounts of stress, but “what’s driving the gender difference is that men are far less likely than women to feel emotional strain from problems of relatives and friends.” In general, women’s stress revolves around other people, whereas men’s primary source of stress centers on work-related issues. The survey sights women’s need to cram too much into each day as a main source of stress. Also, “women are doing a lot of invisible work that’s essential to human existence” which elevates the level of stress experienced.

(Source: USA Today, August 22, 2002).