Progress for Women in Top Positions at Leading Chicago Companies Slows

CHICAGO, November 13, 2006 — The progress of women into the senior ranks of directors and executive officers at Chicago's largest 50 public companies suffered a setback in the past year, according to the ninth annual Chicago Network Census, released today. The 2006 report shows that the representation of women declined for the first time since the initial report was published in 1998. The slippage comes despite a larger pool of director and executive officer positions this year than last.

The Chicago Network, an organization of the area's leading professional women, tracks the representation of women in key leadership positions - board members, executive officers and top earners - based on fiscal year 2005 proxy filings.

Key findings:

• Women directors decreased nearly one percentage point to 13.8% after an increase last year.
  Women executive officers decreased to 14.6%, nearly a full percentage point.
• 37 companies (74% of the total) have no women top earners, up from 35 in 2005.

"The numbers are discouraging," said Cheryl Francis, chair of this year's Census. "Women are losing ground, while companies fail to take advantage of half of the talent pool. This is a huge missed opportunity given the growing body of evidence that shows that companies with higher numbers of women in leadership have better financial results."

• The Census cites one woman CEO, Brenda Barnes, of Sara Lee Corporation. Another woman became CEO after the proxies were filed: Irene Rosenfeld at Kraft Foods Inc. Downstate, at Archers-Daniel-Midland, Patricia Woertz was also named CEO.
• There were other signs of progress: companies with no women executives decreased from 15 to 12, and those with no women on their boards fell from six to two.

The Census again looked at women of color data and found that the percentages of board members and executive officers in Chicago have increased - to 3.9% of directors and 1.9% of executive officers, up from last year.

The Census also looked at 35 of the leading nonprofits. Compared to the corporate sector, the numbers offer some reason for optimism. In the Chicago Nonprofit 35, Zoos and Botanic Gardens have the highest representation of women directors and senior executives, with 31% and 36%, respectively. Education lags the group with 15% women representation on boards, the lowest average among all categories.

On the corporate front, the numbers are particularly disappointing given the growing number of studies pointing to the positive correlation between women in senior management positions and higher company profitability. This year's Census features interviews with Chicago business leaders who offer their own recommendations on what needs to change. The Census also provides specific action steps for board members, CEOs, women corporate and nonprofit leaders and high potential women to increase representation of women.

"There are clear, proven practices that must be embraced by the board, the CEO, and, indeed, the entire organization," said Chicago Network Chair Ellen Carnahan. "From requiring that succession plans include women and diversity to developing a pipeline of talent, there is a role for everyone to play if women are to make significant and sustainable gains."

While the Census results are troubling overall, some organizations have taken the lead in tapping women as a source of talent.

• Four companies exceeded 25% representation of women on their boards. These are: Equity Office Properties Trust, Hewitt Associates, Inc., Sara Lee Corporation and Solo Cup Company.
• Seven companies exceeded 25% representation of women executive officers. These are: Corn Products International, Inc., Kraft Foods Inc., Peoples Energy Corporation, Sara Lee Corporation, Solo Cup Company, True Value Company and W.W. Grainger, Inc.