|[December 06, 2013]
California Companies with More Top Women Leaders Associated with Higher Revenue and Profits, UC Davis Graduate School of Management Study Says
DAVIS, Calif. --(Business Wire)--
While women hold only one in eight of the executive and board positions
in California's top 400 public companies, an annual University of
California, Davis, study shows incremental progress-the percentage of
women in these top decision-making posts has increased, and the number
of companies with no women executives and board directors at all is
Overall, women hold 10.9 percent of the highest-paid executive positions
and board seats in the state's 400 largest public companies-a 1 percent
increase over last year, according to the UC Davis Study of California
Women Business Leaders. Together, the 400 companies represent more than
$3.4 trillion in shareholder value.
Two companies, organic food company Annie's Inc. of Berkeley and
clothing retailer The Wet Seal Inc. of Orange (News - Alert) County, have more women
than men in top executive positions and board seats-a first since the
study began in 2005.
Among the 400 public companies, the top 34 firms identified in the study
with the greatest gender diversity among executives and board members
were associated with earning three times more revenue and having 50
percent higher profit than the average company in the study with fewer
The benchmark study of women in leadership has been published by the UC
Davis Graduate School of Management for nine years.
"Having more women involved at the highest levels of California's large
public companies may improve their performance," said Steven C. Currall,
dean of the management school. "Much more needs to be done to diversify
the top management of public corporations, so let's take this bit of
momentum-this incremental progress-and build on it."
The study is the only one of its kind to focus on gender diversity in
the boardrooms and executive suites of corporate California. It was
cited in September in a state resolution passed by both houses of the
California Legislature calling for more women leaders in public
companies, the first such resolution of its kind in the United States.
Senate Concurrent Resolution 62, authored by Sen. Hannah-Beth Jackson,
is not binding, but sends a powerful message encouraging public
companies to add more women to their corporate boards over the next
three years. The UC Davis study shows that 351 (87.8 percent) of the 400
largest public companies in California do not yet meet the resolution's
goals for the number of women on their boards of directors.
Among the encouraging findings in this year's UC Davis study:
* Fewer companies are without women-the number of companies that have no
womenexecutives and no women board members has dropped to 107, or a
little more than one fourth. This figure is a new low, showing more
women are being appointed to existing or new board seats and executive
* More companies than ever before have at least one woman leader. All 12
of the public Fortune 100 companies in California have at least one
woman director on their board. Two of the top 25 companies in the study,
SciClone Pharmaceuticals Inc. and Williams-Sonoma Inc., have a majority
of highest-paid executive positions, 3 of 5, held by women.
* Although a majority of the 400 largest public companies in the state
still have no women among their highest-paid executives, more women than
ever before are filling these ranks, from 8.9 percent last year to 10.5
percent this year. Women chief financial officers are increasing, while
the number of women serving as chief executive officers is holding
steady at 13, or 3.3 percent.
Among counties with at least 20 companies, San Francisco County has the
most women board directors (17.3 percent), and Alameda County has the
fewest (9 percent). San Mateo County has the most highest-paid women
executives (15.4 percent), and Orange County has the fewest (8.1
The study tracks the members of the boards of directors and the five
highest-paid executives, also called "named executive officers," for
each company as reported to the Securities and Exchange Commission. The
study examined filing data available as of Aug. 31, 2013. The 400
companies were selected based on market capitalization.
The study also looked at the race and ethnicity of women and men
corporate directors at the 94 public companies that also appeared on the
2013 Fortune 1000 list. Ethnic representation is poor among directors of
both genders, with about nine out of 10 directors being Caucasian - even
though California is more diverse than the country as a whole. (Only 39
percent of Californians identify as Caucasian alone.)
Companies that appear in the study's Top 25 list for the sixth
consecutive year are AMN Healthcare Services Inc., bebe stores Inc., BRE
Properties, Deckers Outdoor Corp., and McKesson Corp.
Annie's Inc. and The Wet Seal Inc. tied for No. 1 with 54.5 percent
women in these top positions. Both firms are led by male CEOs.
"Annie's is honored to be at the top of this prestigious list of public
companies," said John M. Foraker, chief executive officer of Annie's
Inc. "Annie's aims to support, promote, and develop highly capable
leaders who can forward Annie's culture of equality and excellence. From
Molly Ashby, chairman of our board, to Annie, our inspirational
president, to key employees throughout our company, women play an
integral role in the success and growth of our brand. This external
recognition reflects our commitment to our values including our
dedication to expanding the role of women in business."
John D. Goodman, chief executive officer of The Wet Seal Inc. said the
company is proud to be recognized for the number of women in its top
executive ranks and its board of directors.
"As a retailer of women's apparel, Wet Seal is committed to empowering,
developing, and recognizing women whether they are our customers,
employees, or members of the communities in which we operate," said
Goodman. "Our people are our lifeblood and it's the rich diversity of
our employees and customers that sets us apart-at Wet Seal we are
passionate about creating opportunities for people at every level."
To publish the study, UC Davis partners with Watermark, a Bay Area-based
nonprofit that offers programs for executive women.
"There has been significant discussion recently about women 'leaning in'
and an outpouring of executive leadership support for greater equality,"
said Marilyn Nagel, CEO of Watermark. "A new women's movement is
emerging in which women advocate for one another and have the ability to
influence at the highest levels."
To download a copy of the study, including industry-by-industry and
county-by-county statistics, visit http://www.gsm.ucdavis.edu/women.
About the UC Davis Graduate School of Management
Dedicated to preparing innovative leaders for global impact, the UC
Davis Graduate School of Management is consistently ranked among the
premier business schools in the United States and internationally. The
school's faculty members are globally renowned for their teaching
excellence and pioneering research in advancing management thinking and
best practices. With prime locations in Northern California's economic
hubs, the school provides a bold, innovative approach to management
education for full-time MBA students and Master of Professional
Accountancy students at the UC Davis campus, and part-time MBA students
in Sacramento and the San Francisco Bay Area.
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