Zoe, Erin, Sallie Trifecta
Krawcheck: it’s logical to think that the global reshuffling precipitated by the crisis would have caused the industry “that’s been white, male, and middle-age” to reconsider the demographics of its leadership. Instead it became whiter, maler, and middle-age-er.
“This goes through my mind so often! They are so many articles on how the world is changing, but industries with so much influence (and money and power) are predominantly run by white males. What can we do to move the needle?” -Lena
Summary of the article:
- April 2019, a hearing before the Housing Financial Services Committee questioned the CEOs of seven of the largest U.S. banks.
- Rep. Al Green (D‑Texas) made a strong point highlighting the under-representation of minorities in positions of power by one powerful request to the CEOs.
- Green: “If you believe that your likely successor will be a woman or a person of color, would you kindly extend a hand into the air”
- All seven male CEOs of the largest U.S banks raised their hand
- The International Monetary Fund found that institutions with larger shares of women directors had higher capital buffers, a lower proportion of nonperforming loans, and greater resistance to stress.
- Yet women are deemed not ready to take on the top positions
Problems with Systemic Under-Representation:
- The ability for women to progress further up in an institutions hierarchy decreases exponentially when compared to the advantages available to men in their progress. How?
- Mentorship: “because the more senior the mentor, the faster the mentee’s career advancement.” Women are more likely to cultivate networks comprised of mainly women or even split between men and women, whereas males form networks with mostly male groups. The implications of this is women have a tendency to form relationships with mentors with too little organizational clout, meaning they’re less able to sponsor or go to bat for women aiming for the next level.
- Assumptions: if you have a strong woman and you have a strong guy—two people up for that next job—unless you have someone pushing for the female candidate, they’ll say, ‘She can wait another year,’ ” says the former managing director. A woman is perceived to be more loyal to the firm, she says, meaning there’s less incentive to ensure she’s satisfied.
So, Michael Corbat (Citigroup). Jamie Dimon (JPMorgan Chase). James Gorman (Morgan Stanley). Brian Moynihan (Bank of America). Ronald O’Hanley (State Street Corp. ). Charles Scharf (New York Mellon). David Solomon (Goldman Sachs). Who’s going to raise his hand first?Claire Zillman