Could Women Have Saved Wall Street?
You’ve heard me say it before, and no doubt you will hear me say it again, if ever there was a time in history that cried out for women’s leadership that time is now. The financial crisis facing not only the U.S. but the entire world is yet another example of how an industry led almost exclusively by men, and having a well-documented history of bias against women, has proven men to be poor stewards of our resources.
Was it only men who got us into this mess? Of course not. But the numbers speak for themselves. Female financial professionals earn an average of 22% less than their male counterparts, with even female senior partners earning 25% less. Not one of the bailed out or failed firms had a woman at the helm. Not AIG, Fannie Mae, Freddie Mac, IndyMac Bank, Lehman Brothers, nor Bear Sterns.
In her new book, The Hour Glass Effect, Dr. Tammy Wong makes a strong business case for instituting programs aimed at developing and retaining female leaders. She points out that for every two baby boomers leaving the workforce, only one Gen Xer is available to fill those spots. Yet as recently as 2005 only half of Fortune 500 companies had more than one female officer. Dr. Wong’s premise is that women’s initiatives are an untapped tool that help companies remain competitive and her book provides a blueprint for effective implementation.
Kudos to financial and professional services firms like Goldman Sachs, KPMG, Morgan Stanley, and Ernst & Young — all leaders in the establishment of affinity groups and gender equity initiatives AND, you’ve noticed, still standing.
TAGS: affinity groups, Dr. Tammy Wong, Ernst and Young, Fannie Mae, Freddie Mac, Goldman Sachs, Morgan Stanley, The Hour Glass Effect
I understand that women are leaving the traditional workforce and starting their own businesses at a high rate.
I myself am ready to be of greater purpose to this world and can not see how expending my energy to try and make a difference in the male dominated corporate company is serving that greater purpose.
It is at the expense of my sanity with my family and the rest of the world. So…. .I am developing an idea while still working in this male dominated corporate company.
I feel isolated because I will not accept the status quo, but not really up to putting up a visible fight.
I question whether my calm steadfast approach is making a difference as it relates to advancing this whole subject of diversity in leadership.
Your reply would be appreciated.
Comment by Dancing BAG Lady — October 14, 2008 @ 6:41 pm
I will answer your question in a personal e-mail to you as soon as I return to my office, Dancing BAG Lady. At the moment I’m enroute to the Texas Conference for Women. One thought off the top of my head is that you might consider what’s in between “calm and steadfast” and “putting up a fight.” Both are extremes and I have a hunch there’s a place in the middle where your energies will be be put and rewarded.
Comment by Dr. Lois Frankel — October 15, 2008 @ 12:12 am
hey, is there a section just for latest news
Comment by henry — March 2, 2009 @ 2:53 pm
[...] gender diversity could have mitigated the financial crisis (check out some examples here and here). Sylvia Ann Hewlett writes that there was “too much testosterone on Wall Street” in [...]
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