Shattering the Ceilings, for Good

I started in the financial services industry in 1988 as an analyst at Goldman Sachs. Eight years later at the age of 32, I was the first female trader and youngest woman to be invited in to the partnership of this firm. I was an example of how women could make it on Wall Street and the financial services in general. Or was I?

At the time I made partner I was one of two women in a class of 38 and the percentages are not that much different today. The barriers that continue to prevent women from reaching senior leadership in critical mass in the financial services industry and more generally--negative gender stereotyping, lack of women in line positions, a narrow pipeline, lack of mentoring and promotion opportunities, work/life balance challenges, limited access to powerful professional networks--are the same ones faced over a decade ago. So little is changed and we are left asking why.

Rilke once said we should honor the questions, and we should, but in this case solutions are long overdue. A report that will be released Wednesday, June 24th, by the National Council for Research on Women, "Women in Fund Management: A Roadmap to Positive Change and Why it Matters" offers some of both. It's time to get beyond the ambivalence, embrace the solutions, and make progress lasting and real.

These questions are not new, just newly applied--though one starts to wonder if anyone has been paying attention lo these many years. "Weren't we supposed to be beyond this by now?" asked Portfolio's Harriet Rubin in relation to women's lack of progress at work. She notes that 'while women have made huge professional gains in the past three decades, progress now appears to have slowed or stalled. In some cases it is even backsliding." Despite growing and consistent evidence that having women on boards enhances corporate performance, fifty-nine of the largest companies in America are still without even one. The numbers are not much better on the political front. "In a year of unprecedented attention to women in politics, female candidates made only marginal gains" says Vanessa Gezari in the Washington Post. It is all just so disappointing. What will it take for positive change to finally take hold?

Perhaps it took a full-scare financial and economic crisis the likes of which we have not seen since the Great Depression to push us in to new solutions, primary among which is attaining a critical mass of women in leadership and decision making roles. Critical mass is defined as 30%, as research bears out that it is this percentage that decision -making dynamics changes for the better. Given the poor decision making, failure of leadership, excessive leveraging, the lack of appropriate regulatory oversight and the broad failure of risk management systems, we can no longer afford not to draw on the talents of our entire population, 51% of which are women, to rebuild our financial system and bring stability to our national and global economies once more.

With the spotlight clearly on the world's largest financial institutions and regulatory agencies the Council's solutions are both comprehensive and timely. They provide the road map for positive change. Here is what is needed: Recognize and address the complex interconnectedness and global nature of the crisis. Adopt the critical mass principle for board composition and senior leadership positions. Recognize that women fund managers and business owners lack access to capital, and provide work to open the channels for funding. Require greater transparency and accountability broadly. Expand the pipeline for women entering careers in financial services and business generally. Build and expand professional networks. Provide mentoring opportunities at all levels. Highlight the achievements of successful women in finance to provide role models for other women. Work to change the climate and culture. Support and fund more research in this field.

To be sure, lack of women in finance is but one of many possible problems that led us to this dark place. But it's a problem that can be addressed. So let's move. Time to stand up and demand that the leadership of our country's largest institutions, and in particular our financial institutions including our regulatory institutions, more closely represent the populations they are intended to serve. Just last week the government announced the most broad based changes to our financial institutions in 80 years and yet absent from that was this. Let us make it a goal to have a critical mass of talented and committed women to join the decision-making tables including senior leadership and boards of directors. The Financial Times called for this measure saying "that is there is ever a time for women to make a decisive breakthrough in corporate boardrooms, it is surely now." Just a few weeks later they featured an article on how the country of Norway is quickly becoming an example to the world by institutionalizing this commitment. We can do this here.

From brokenness comes opportunity. From failure comes success. And from destruction comes the possibility of a stronger and more sustainable future. My daughter is 9 years old. One day, I hope she will consider a career on Wall Street like her mother. And I hope that when that day comes, she can look at the leadership of our country's largest financial institutions and see women's faces in critical mass saying yes, this is where you belong.

Comments

[Jacki Zehner - Huffpost Blogger]

Thank you for your many comments and I wish I could respond to each one. My main point is this - I want to live in a world where people have both the access and the opportunity to achieve in their chosen areas. Many talented women have chosen a career in finance, and have to face the reality that there are tremendous barriers ( in general) to their success. It is time those barriers came down. Our research ( see the paper ) does say that when women are at decision making tables in critical mass the quality of that decision making improves. I believe, and of course can respectfully disagree, that if women were in decision making roles in critical mass the outcome may have been different. Would we have avoided this financial crisis? Who knows and perhaps likely not, but we will never know. I am choosing to imagine a different future where personal choice, talent and work ethic, not exclusionary behaviors and beliefs, determines who has power, and influence.

[weatherwaxx]

By all means, let's keep working for equality for women in all areas... but to imagine that women are inherently more competent, or capable, or ethical than men is to set oneself up for disappointment. God(dess) preserve us from a financial counterpart to Sarah ("Wardrobe Splurge") Palin!

[greyhound2]

The affirmative action quota groups have been whinning about the imaginary boogy-man for the past 40 years. The blame game is a whole lot easier than doing something for yourself.

[weatherwaxx]

Jealous much?

[WomenProgressNow]

Though I am a fan of all Ms. Zehner's posts, this particular piece struck a resounding chord with me due to my recent reading of Congresswoman Carolyn Maloney's new book "Rumors of Our Progress Have Been Greatly Exaggerated: Why Women's Lives Aren't Getting Any Easier and How We Can Make Real Progress for Ourselves and Our Daughters." This piece and the Congresswoman's text delve into factually and statistically supported evidence that women simply haven't made the progress we think they have, especially in positions of power such as the halls of Congress or corporate board rooms. Congresswoman Maloney writes:
"We can be business leaders who create jobs for women and maintain America's economic preeminence. We can change the attitudes of the workforce and government to foster real family values, creating a saner work/life balance for all parents, married or single...We can restore the decency and human values on which this country was founded. We can change the rules. We can change the world. And I expect we will, because the power of women, when we resolve to do something, is one thing that can never be exaggerated."

Ms. Zehner, I truly believe that you should read the book, as I know you will find a lot of your ideas and beliefs in the text. This is one politician that women can rally behind, and one that has been fighting for the causes you articulated so well. Thanks for your work, and please, keep it coming.

[pfrogger]

I believe in equality for women and think they should be equally represented in Wall Street. there should be no reason that women should not be equally represented in all professions.

But when you write "We can change the rules. We can change the world" as quoting from Maloney, I truly hope you don't believe in the writer's premise that women in wall street would somehow be more moral or have prevented Wall Street's uncontrollable greed. Because there is absolutely no reason to believe that is true.
I'm sure I'm just mistaken.

[grapharm]

wow what a great article and thank you for mentioning NCRW in your article, and the research we're doing. We look forward to hearing your remarks tomorrow.

Thanks!
Priyanka
Summer Intern 09'

[vagabondvet]

Discrimination in the free market really makes no sense, from a Microeconomics 101 perspective. If an employer could justify paying less to someone because of race or gender being the sole characteristics, they would end up hiring more of the lesser paid workers in order to maximize profit. It's when other factors are added that it becomes clear that it's not discrimination but rather profit maximization that is the tool used. For example, the wage gap between men and women increases from near nothing at the age of 18 and becomes wider as the two groups get older; is this because of gender discrimination, or could it be that as men and women get older, women are more likely to choose family over career (which is slightly lower paying) or take lesser-paying part-time jobs, or have less experience in a field due to prior family obligations than men are?

[curiousasheck]

Mama don't let your daughters grow up to be traders. ♪♫

[JonShank]

I work in a Fortune 500 Company in New York City on Wall Street. I have several friends from other companies all over the city. I don't know about WHICH place Ms. Zehner is talking, but I can assure you that there are a LARGE number of women throughout the city in very high places. The President of my company was a woman for a time, then she left to head another place. Many of the Executive Vice Presidents are women. Maybe some other places don't help women, but here in NYC, we do.

[BookQueen]

The only way we are going to get more women to the top in any field is to create career pathways that support parents who take time off or downshift their career. Many women want to be do their own child care. Polls show that most moms do not want to work 35+ hours/week. Most also want to work either later in their lives or part-time for a while and then full-time.

Instead of lecturing women to behave like 1950's fathers, we need to value the work of child rearing and focus on changing the workplace. Increase the availability of challenging part-time work and develop what Hewlitt calls "on-ramps" and "off ramps" to careers.

I would like to see more women who have made it to the top calling for these changes. I sometimes feel that in the process of getting to the top, they have been changed and adopted the traditional workplace values. I would like to believe that having women at the top is beneficial to all women, but that won't be true if they don't push more for moms who want to spend large amounts of time with their children.

[mcthfg]

So women can be heartless, feckless capitalist whores, too? To quote another poster - You go, girl. Thanks for helping ruin the world.

How about we get off this ship of greed we've built, and that you've helped steer. How about NOT trying to get something for nothing through investments, but actually WORKING to get what you have? Or is working too hard for you? How many people have you sent to the welfare lines with your work?

Goldman-Sachs? I'd take a swing at you, if I could get close enough.

[pfrogger]

well said.

I don't remember the mass of women protesting greed and financial ruin.
greed is not gender biased. it applies to both genders. another thing that we can all come together on. too bad it almost destroyed this country. but why worry about such things.

[TheKraken]

http://www.independent.co.uk/news/uk/this-britain/the-secret-of-corporate-success-women-in-the-boardroom-improve-performance-680081.html

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1107721

http://ideas.repec.org/p/hit/hitcei/2008-7.html

[LeonBNJ]

I would be willing to bet that the women who do get a chance are more likely to be 'attractive', went to the same top MBA schools, often come from money themselves and are just as greedy as the men. Still, more women with different personal backgrounds in top financial and corporate positions can only help the world.

[Jacki Zehner - Huffpost Blogger]

Thank you for your comments. The research paper will be released on Wednesday which has dozens of references to studies which add support to my arguements.
http://www.ncrw.org/hedgefund/ I encourage you all to take a look.

[pfrogger]

great another book that I have to buy?
and I'm sure the research it cites has verifiable statistics, peer-review, and has no bias.

this is beyond pathetic.

[FoonTheElder]

Some women think that the problem is to replace sociopathic frauds that occupy the ivory towers of big corporations and change the way they do business.

Other women just think the problem is that they aren't a part of the current ivory tower.

Unless someone is truly part of the solution, it doesn't matter what sex or race they are.

[Halsey]

I started in this "biz" way back in 1983 as the first and ONLY woman "trainee" at a brokerage firm. Two men were also hired as trainees..they were paid $1500 a month (remember..this WAS 1983)...I was paid $1250...I asked "why"..and literally got a grin from my manager..first he tried "well..Joe has a daugher"...I said "Ralph's a single guy"...just got another grin... there were no lawsuits back then for equal pay...so I swallowed my pride and trudged on... fast forward 26 years...yes..many inroads..more female brokers...but it is STILL an old boys' network for the most part... I wish I were young enough to change careers...the greed and corruption at the top of this industry...mind boggling...

I don't know if women are the answer...I'm sure we can be just as greedy... but you sure don't see too many female faces in the AIG, Lehman, Merrill, Citigroup debacles...do ya? nor black male faces for that matter...

the answer? no clue..but the whole system needs a drastic clean up...NO ONE is worth $20,000,000.00 a year...No one..

[JHawkKC]

Umm Rush Limbaugh seems to be worth a bit more than that, he is getting paid what the market will bear.

[pfrogger]

let's hope when they're offering you that much you remember your own words.

greed is universal. there is absolutely NO REASON to believe that a woman in a culture of greed would behave differently and play along. herd mentality doesn't just affect males. I have yet to see and paper or research that opposes that view.
and I mean a real research paper - verifiable statistics, peer-review, and no bias. everything else is just fact-lite opinion.