CLOSING THE GENDER GAP VISION 2020 Roberta D. Liebenberg Vision 2020, National Leadership Circle Former Chair, ABA Commission on Women in the Profession and ABA Gender Equity Task Force Lisa M. Passante Vision 2020, Sponsorship Committee Chair Immediate Past President, National Association of Women Lawyers

VISION 2020

What is the Pay Gap? VISION 2020 In 2014, women working full time year-round were paid only 78 cents for every dollar paid to men, a gap of 22%. African-American women were paid only 64 cents for every dollar paid to white men. Hispanic women were paid only 54 cents for every dollar paid to white men. This pay gap adds up to an average lifetime shortfall of: $700,000 for high school graduates; $1.2 million for college graduates; and $2 million for professional school graduates. This pay gap also adversely affects women’s retirement benefits, which are based on pay during their careers. The pay gap exists in all 50 states; affects women regardless of their level of education; and exists in virtually all jobs and at all levels of seniority. Women earn just 76% of what men earn in Pennsylvania, which ranks 37th among the 50 states plus the District of Columbia.

The Pay Gap over Time VISION 2020 Women’s Median Annual Earnings as a Percentage of Men’s Median Annual Earnings for Full-time, Year-Round Workers, 1973–2013 Source: U.S. Census Bureau, Current Population Survey; AAUW

The Pay Gap Hurts Women for a Lifetime VISION 2020

The Pay Gap Impacts Women Throughout Their Careers VISION 2020 The pay gap begins when women first enter the workforce, even before factors such as professional experience, family or parenthood have an impact. One year after college graduation, women were paid just 93% of what their male counterparts are paid. Ten years after college graduation, women were paid just 88% of what men are paid. Women MBA’s were being paid $14,548 less in their first job than men. After 10 years, male MBA’s earned 60% more than women. The largest pay gap occurs during a woman’s prime working years, ages

The Pay Gap and Age VISION 2020 Median Weekly Earnings, by Age and Gender, 2013 Source: U.S. Census Bureau, Current Population Survey; AAUW

The Pay Gap Differs by Occupation and is Greatest at Highest Income Levels VISION 2020 Salaries are lower in fields and occupations where women predominate. Female elementary and middle school teachers earn 87% of what their male colleagues earn. Female social workers earn 94% of what their male colleagues earn. Women who work in traditionally male fields and occupations generally earn more, but there is an even larger pay gap between these women and their male counterparts. Women physicians and surgeons earn only 62.2% of what men earn. Women CEOs earn only 70% of what men earn. Women stockbrokers earn only 65.1% of what men earn. Women financial managers earn only 67.4% of what men earn. Women law partners earn 68% of what men earn. Women general counsel earn on average $150,000 less than men.

Findings Of Recent Study On Gender Gap In Executive Compensation VISION 2020 Female top executives earn 42% less than men. Having a greater proportion of women on a compensation committee reduced inequality in salaries paid to women compared to their male counterparts. Firms with one woman on the compensation committee saw average total compensation for women executives increase by 34%. Firms with at least 2 women on compensation committees virtually eliminate salary disparities (the average total compensation for women increases by 85% ). 81% of the firms in the study had no women on their compensation committees; only 10% of the firms had equal gender representation. The Annals of the American Academy of Political and Social Science

The Pay Gap Hurts Working Mothers VISION % of working mothers with children under 18 are their families’ sole or primary breadwinners. 83% of single parent families are headed by women. Working mothers face a“motherhood penalty”– they are offered less in starting salaries, raises and bonuses. Recent study found that mothers suffer a 4%“ wage penalty” for each child. By contrast, men’s wages increase by over 6% with the birth of their first child.

Overview Of Women In Corporations: The Numbers Don’t Lie VISION % of Fortune 500 GC’s are women (only 21 of the women GC’s are women of color). 20.8% of Fortune 1000 GC’s are women (only 28 of the women GC’s are women of color). 19.2% of members of S&P 500 Boards of Directors are women; only 19.8% of the women directors are women of color. 3.6% of S&P 500 companies had no women serving on their Board. 25.1% of S&P 500 Executive/Senior level officers and managers are women. 4.6% of S&P 500 CEO’s are women.

Inverse Pyramid for Women in Law Firms VISION 2020 Higher up you look, fewer women you find. Women comprise: 64% of staff attorneys. 47% of associates. 38% of “of counsel.” 29% of non-equity partners. 17% of equity partners. Less than 5% of managing partners.

VISION 2020

The percentage of openly LGBT lawyers in law firms is very low – less than 2% of partners and less than 3% of associates VISION 2020 PartnersAssociates %1.33% %2.83%

Challenges to Achieving Pay Equity in the Legal Profession VISION 2020 Implicit bias Inequitable credit allocation Inequitable promotion and succession policies Lack of transparency and accountability Motherhood penalty

Negotiating for Yourself VISION 2020 Compensation, stretch assignments, promotion, or job title What do you need to know? How can you make an effective ask? Enlist allies and sponsors

Publications VISION 2020 Closing the Gap: A Road Map for Achieving Gender Pay Equity in Law Firm Partner Compensation Power of the Purse: How General Counsel Can Impact Pay Equity for Women Lawyers What You Need to Know about Negotiating Compensation