Minding the State of the Gender Gap: Strategies to Close the Gap June 21, 2017 Fatma Abdel-Raouf Pat Buhler

The Gaps Pay Leadership

The State of the Gap The problem isn’t going away . . . . https://www.bing.com/videos/search?q=secret+deodorant+commercial+wage+gap&view=detail&mid=B4AA394EF7FBE0DDF99AB4AA394EF7FBE0DDF99A&FORM=VIRE 118 years to close the gap! http://www.intelligentinsurer.com/article/closing-the-gaps

A Picture of the Gap AAUW report http://history.aauw.org/aauw-research/1991-shortchanging-girls

The Progress of the Gap The times they are a changin’ . . . . - NOT! https://www.bing.com/videos/search?q=angelina+wrestler+little+big+shots&&view=detail&mid=FBBD047B9A7DD8FFB407FBBD047B9A7DD8FFB407&FORM=VRDGAR - NOT! http://chordstabslyrics.com/album/bob-dylan/the-times-they-are-a-changin

The Bottom Line Women underestimate their abilities A self-perpetuating cycle http://kristiholl.net/writers-blog/2013/08/new-twist-on-the-thought-feeling-behavior-writing-cycle/

The Irony of the Imbalance of the Leadership Pipeline The pipeline is larger No short supply

The Perception of Leadership Masculine terms EQ

The Story is in the Numbers . . . https://gencodegenes.wordpress.com/index/colourful-preschool-numbers/

The 10 Top Paid CEOs in 2016: Where Are All the Women? Out of the 10 top paid CEOs in 2016, only one is a female! This is a mere 10%! Oracle CEOs: Compensation, M $1.1M and F $970,537 (+$40M Stock & options, each) (Equilar 200 CEO Pay Study)

The 10 Top Paid CEOs in 2016 Where Are All the Women? Rank Name Company 2016 Total Compensation Gender 1 Tom Rutledge Charter Communications $98 million M 2 Les Moonves CBS $68.6 million 3 David O'Connor Madison Square Garden $54 million 4 Fabrizio Freda Estee Lauder $47.7 million 5 Mark Parker Nike $47.6 million 6 Mark Hurd (co-CEO) Oracle $41.1 million 7 Bob Iger Walt Disney $41 million 8 Safra Catz (co-CEO) $40.9 million F 9 David M. Zaslav Discovery Communications $37.2 million 10 Bobby Kotick Activision Blizzard $33 million

Women are Underrepresented in the Corporate Pipeline: % of Employees in the Corporate Pipeline by Gender, 2016 Position M F Entry Level 54% 46% Manager 63% 37% Sr. Manager/ Director 67% 33% VP 71% 29% SVP 76% 24% C-Suite 81% 19%

It is Even Worse for Women of Color: % of Employees in the Corporate Pipeline, 2016 Position WM Male of Color WF Females of Color Entry Level 35% 16% 32% 17% Manager 45% 15% 29% 12% Sr. Manager / Director 52% 13% 27% 8% VP 60% 11% 23% 6% SVP 66% 10% 20% 4% C-Suite 71% 3%

Women and the C-Suite Jobs: McKinsey & Company and LeanIn.org examined responses from 30,000 employees at 118 companies and found that at the current rate, it will take: 25 years to achieve gender parity in SVP jobs More than 100 years to achieve gender parity in the C-suite jobs!

Gender Pay Gap by Race:

Gender Pay Gap by Race: 81% 74% 67% 69% 62% 123% 95% % of White Males, 2015 White Female 81% Black Male 74% Black Female 67% Hispanic Male 69% Hispanic Female 62% Asian Male 123% Asian Female 95% Source: Google Image

Gender Pay Gap by Age Group:

Gender Pay Gap by Marital Status:

Gender Pay Gap by Educational Attainment:

Gender Pay Gap and Income Distribution: Source: EPI 2016. The xth-percentile is the wage at which x% of wage earners earn less and (100-x)% earn more.

Gender Pay Gap by States: 2015 Top and Bottom 5 States, F/M Earnings Ratio

Top and Bottom 5 States for Women’s Losses Over Their Working Life, 2015: Source: https://nwlc.org/wp-content/uploads/2017/03/Women-Lifetime-Losses-State-by-State.pdf

Women's Losses Over their Working Life, 2015 Source: Google Image Source: https://nwlc.org/wp-content/uploads/2017/03/Women-Lifetime-Losses-State-by-State.pdf

Number of Years to Catch Up, 2015: DE is second only to NY by fraction of a year! In NY, F/M earnings ratio 0.887 while in DE 0.885.

Lifetime Losses and Age to Catch Up (to WM) for White Women, 2015

Lifetime Losses and Age to Catch Up (to WM) for Black Women, 2015

Lifetime Losses and Age to Catch Up (to WM) for Latina Women, 2015

2015 Poverty Rates and Gender Gap:

Gender Pay Gap and Poverty: IWPR Report

Gender Pay Gap and Poverty: IWPR Report

Gender Pay Gap and Children Poverty: IWPR Report

Gender Pay Gap and Economic Growth: IWPR Report

Gender Pay Gap and Economic Growth: It adds up! A report by the McKinsey Global Institute (MGI) Closing the gender gap can grow the U.S. Economy by $2.1 trillion in GDP by 2025. Every state and city in the U.S. can add at least 5% to their GDP. 1/2 of the U.S. states can add > 10% to their GDP and the 50 largest cities can add 6 – 13%.

Gender Gap and Company’s Profits: Return on Equity (ROE): Companies with the highest % of women board of directors (WBD) outperformed those with the least WBD by 53%. Return on Sales (ROS): Companies with the highest % of WBD outperformed those with the least WBD by 42%. Return on Invested Capital (ROIC): Companies with the highest % of WBD outperformed those with the least by 66%. Source: Catalyst’s Report “The Bottom Line: Corporate Performance and Women’s Representation on Boards.” 2007.

Is Three a Charm? ROE: 16.7% vs. average of 11.5% Catalyst’s report, companies with three or more WBD have : ROE: 16.7% vs. average of 11.5% ROS: 16.8% vs. average of 11.5% ROIC: 10% vs. average of 6.2%

How long does it Take to Achieve Gender Pay Equality? Source: Google Image Long time! Baby boomer generation might not see gender pay equality in their lifetime and so is generation X ,while Millennials might see it during their life time.

How long does it Take to Achieve Gender Pay Equality? Using a linear projection and the median weekly earnings, If F/M earnings ratio grows at the same rate as it did from 1980 to 2015, we will achieve gender pay equality in 2047. If F/M earnings ratio grows at the same rate as it did from 1990 to 2015, we will achieve gender pay equality in 2064. If F/M earnings ratio grows at the same rate as it did from 2000 to 2015, we will achieve gender pay equality in 2071. IWPR (March 2017 Report), 1959 to 2015, we will achieve gender pay equality in 2059.

First and Last 5 States to Close the Gender Gap, IWPR Projection, 1959 – 2015:

How long does it Take to Achieve Gender Pay Equality? IWPR 1959-2015 MD, 1 year later than 2014 projection. DE, 3 years sooner than 2014 projection. NJ, 1 year sooner than 2014 projection. PA, 4 years sooner than 2014 projection.

How long does it Take to Achieve Gender Pay Equality? IWPR A baby Girl born in the U.S. in 2017: Life Expectancy 87 years. By age 65 (year 2082), 13 states will still have gender pay gap. By age 70 (year 2087), 9 states will still have gender pay gap. By age 87(year 2104), 3 states will still have gender pay gap. By age 100 (year 2117), Wyoming will be the only state with gender pay gap.

Years to Close the Gender Pay Gap by Race: IWPR Projection (1985-2015)

Adjusted Gender Pay Gap: According to Glassdoor.com, the F/M earnings ratio is 76%. After controlling for Education Years of experience Job title Employer and location Age The F/M earnings ratio increases to 95%, reducing the gap from 24% to 5%. Other studies found the adjusted pay gap is between 2 to 9%.

Explained vs. Unexplained Gender Pay Gap:

EPI Adjusted Gender Pay Gap: EPI (2016) “What is the Gender Pay Gap and Is It Real?” The unadjusted gap is 17.9 percent. A partially adjusted gap is 21.7 percent (Controlling for race and ethnicity, education, experience, and geographic division). The gap increases because women workers, on average, have higher levels of education than men. A fully adjusted gap 13.5 percent (controlling for major industry category, detailed occupation (four digit), and full-time status)

Adjusted Gender Pay Gap: Blau and Kahn (2016) find An unadjusted gap of 20.7 percent, A partially adjusted gap of 17.9 percent, (controlling for education, experience, race/ethnicity, region, and metropolitan area residence) and A fully adjusted gap of 8.4 percent (The fully adjusted model adds in a series of industry, occupation, and union coverage dummy variables).

Gender Pay Gap Calculator Developed by the Economic Policy Institute (EPI): Epi.org/paygapcalc Gender Pay Gap Calculator

Gendered Phrases in Job Posts and Gender Hire:

Gender Bias: Women get interrupted more often than men. Women are asked more challenging questions than men. Women’s statements are questioned more often than men’s.

Digital Fluency Rate and Gender Pay Equality: Developed Countries: (2015 Start) Current Technology (status quo): 50 years to achieve gender pay equality, by 2065. Doubling the digital fluency rate: 25 years to achieve gender pay equality, by 2040. 25 years Faster! Developing Countries: (2015 Start) Current Technology (status quo): 85 years to achieve gender pay equality, by 2100. Doubling the digital fluency rate: 45 years to achieve gender pay equality, by 2060. 40 years Faster!

Women's earning for every $1 a man earns 10 Majors where Women Earn More than Men (Glassdoor April 2017 Report): Major Women's earning for every $1 a man earns Architecture $1.14 Music $1.10 Social Work $1.08 Advertising Environmental Science $1.07 Chemical Engineering $1.05 Kinesiology Mechanical Engineering $1.03 Sports Management $1.02 Anthropology

The Call to Action Raise awareness Promote transparency Offer coaching http://blog.bluefrogdm.com/Blog/bid/311729/7-Techniques-for-an-Effective-Call-to-Action

The Call to Action: Raise Awareness 70 vs. 12 (McKinsey) Track metrics Set gender targets Assess organizational attitudes http://www.intelligentinsurer.com/article/closing-the-gaps

The Call to Action: Promote Transparency Permission and confidence “Salary negotiable” in ads Process for pay determination

The Call to Action: Offer Coaching Mentors Provide male sponsorships Negotiation workshops http://www.intelligentinsurer.com/article/closing-the-gaps

The State of the Gap and You http://www.huffingtonpost.ca/2016/03/08/canada-gender-pay-gap_n_9393924.html

The State of the Gap and You: Recommendations Beware of “benevolent biases” Manage that impression pQvtpycvg#tbm=isch&q=posoned+apple&imgrc=obMRDYBEOx8K5M%3A https://www.google.com/search?site=&tbm=isch&source=hp&biw=1920&bih=963&q=goldilocks&oq=Goldilocks&gs_l=img.1.0.0l10.4481.6992.0.9362.10.6.0.4.4.0.117.489.5j1.6.0....0...1ac.1.64.img..0.10.548.Ds

The State of the Gap and You: Recommendations Inventory attitudes: Grit Positive attitude Growth mindset Humor

The State of the Gap and You: Recommendations Use space Think about language

The State of the Gap and You: Recommendations https://www.bing.com/videos/search?q=wonder+woman+pose&&view=detail&mid=7D153F17A938911433B57D153F17A938911433B5&FORM=VRDGAR https://www.bing.com/videos/search?q=Wonder+Woman+Movie+2017&&view=detail&mid=4600F37CB88445BD139F4600F37CB88445BD139F&FORM=VRDGAR

The State of the Gap and You: Recommendations How do you handle interruptions?

The State of the Gap and You: Recommendations Quiz time: Can you spot what not to do? https://www.youtube.com/watch?v=TRSS6uFUxSg&feature=youtu.be

The State of the Gap and You: Recommendations Say no Self promote Review recommendation letters

The State of the Gap and You: Recommendations Channel your inner Wonder Woman and answer the call to action to close the gender gap! Send us your pose pictures.

Thank you! raouff@gbc.edu buhlerp@gbc.edu