Yahoo Finance Women and corporate America: Ellen Pao case sparks the right conversation
Closing arguments continue in the Ellen Pao discrimination trial in California and whether she likes it or not, Ms. Pao has become a sort of poster child for equality in the work place.
“People are talking and that is going to force change,” notes Yahoo Finance Editor in Chief Andy Serwer. “I think that it’s incredibly important and significant that this case is making itself part of the conversation.”
The practical matter of fixing the problem and striving for gender parity in corporate America needs “to start very very early with what they call STEM (science, technology, engineering and math) education,” says Dani Hughes, Founder and CEO of Divine Capital.
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“Those changes take time. They’re not going to happen in one year. It’s going to take 10, it’s going to take 15 years,” she says.
While we wait, Hughes says mentoring also needs to become more commonplace “particularly in areas of finance, of engineering and tech [where] there aren’t as many women.”
A movement towards gender equality at all levels of the corporate structure is not only beneficial to women, but also to the companies themselves.
According to a study conducted by McKinsey & Company using data from companies in France, Germany, the UK and the United States between 2008 and 2010, companies ranked in the top quartile with respect to executive diversity had a return on equity 53% higher than that of the bottom quartile.
A 2007 report from Catalyst.org showed that Fortune 500 companies benefit specifically from have women on their board of directors:
Return on Equity: On average, companies with the highest percentages of female board directors outperformed those with the least by 53 percent.
Return on Sales: On average, companies with the highest percentages of female board directors outperformed those with the least by 42 percent.
Return on Invested Capital: On average, companies with the highest percentages of female board directors outperformed those with the least by 66 percent.
“Companies perform better when they have different voices within,” Hughes summarized, adding, “we’ve taken some big steps.” Still, the Ellen Pao case illustrates that, regardless of the verdict, at least to right conversation has been started.
