BURLINGAME, Calif. -- Women, for all their economic clout, hold only one in every 10 top decision-making positions at California's 400 largest publicly traded companies, according to research conducted at the University of California, Davis.

The second annual study -- scrutinizing twice the number of companies and more executive positions than the first -- found women hold only 10.2 percent of the combined board seats and executive officer positions, the same percentage reported last year. Specifically, they occupy 349, or 11.7 percent, of the 2,979 executive positions, and only 287, or 8.8 percent, of the 3,245 board seats.

"The UC Davis Study of California Women Business Leaders" was released today (Nov. 16) by the UC Davis Graduate School of Management, in partnership with the Forum for Women Entrepreneurs and Executives. The first major research project of the new UC Davis Center for Women and Leadership, the study was presented to about 100 business leaders at the UC Davis Forum on Women and Leadership in Burlingame, Calif.

"As the epicenter of innovation, the eighth largest economy in the world in its own right, and a trailblazer in social trends, California should be on the forefront of women's leadership in the corporate arena," wrote author Katrina Ellis, an assistant professor at the management school and a co-director of the UC Davis center. "The truth is, it is not."

Ellis' study identified 25 companies -- more than two-thirds from Northern California -- that have more than 25 percent women directors and executive officers, and the management school recognized those companies with awards at today's event. Leading the list is Hot Topic Inc. of the City of Industry, with 45.5 percent of the top roles filled by women. But those 25 companies, Ellis found, were the exception to the rule.

Nicole Biggart, dean of the management school and co-director of the UC Davis center, said the study's findings "paint a disappointing picture of female representation on the boards and in the executive suites of these high-profile companies."

"In today's global marketplace, where diverse backgrounds, skills and experience are critical for strategic operational decisions," she said, "having more women involved at the highest levels of business management and corporate governance can only result in more profitable and well-managed corporations."

She added: "Our findings show ... that the Golden State is not a land of golden opportunity."

Working to advance women

The study calls for more women in leadership roles as good, sound business, and it is supported by other research showing shareholders benefit from greater representation of women.

Indeed, Donna Dell, former California labor commissioner, issued a call to action at today's event. She challenged California businesses without a woman on their board to add one by the end of June, so they will be included in the tally of next year's census.

To help the cause, Biggart announced that the school is partnering with the Forum for Women Entrepreneurs and Executives to increase the ranks of women corporate leaders. "We can be part of the solution," she said.

Chris Melching, chief executive officer of the Palo Alto-based Forum, said the nonprofit network will help address the issues raised in the UC Davis census through BoardMatch, its new placement service that identifies and recommends experienced and qualified women for openings on public and private company boards.

"Together with the UC Davis Graduate School of Management," she said, "we can increase awareness about this issue and change the composition of company boards and senior management to reflect more accurately the percentage of women in the workforce."

"Women are making progress in many arenas, but there is still a long way to go to achieve equal representation," added Mary Wiberg, executive director of the California Commission on the Status of Women and a speaker at the event. "The UC Davis study focuses attention on a critical area and is a good first step toward increasing women's participation as decision makers in the world of business."

Methodology

UC Davis' Ellis used Standard & Poor's data to identify the top 400 companies headquartered in California by net revenue for fiscal year-end reporting from July 2005 through June 2006. She compiled information about directors and the top executives from filings with the Securities and Exchange Commission. For the purposes of her study, Ellis defined top executives as any identified in the company's annual report.

The study found 125 companies, or more than 31 percent, have no woman board member and no woman executive officer. More than 50 percent of the 400 companies have no woman in the boardroom, and almost one-third have only one woman director.

In addition, more than 48 percent of the companies have no woman among their executives, and women are chief executive officers at only 11 companies.

By size and industry

Company size matters in relation to the boardroom. Overall, the largest companies have three times the percentage of women board members as the smaller companies.

Industry sector also makes a difference. The retail sector, for example, has the highest percentage of women directors and women executives, followed by the financial sector in both measures. The telecommunications industry has the lowest percentage of women directors, and the electronics industry has the lowest percentage of women executive officers.

Location and regional comparison

Sacramento County has the highest average percentage of women board members, followed closely by Marin County. Santa Barbara County has the highest average percentage of women executives, followed by San Francisco and Marin counties.

A comparison to similar studies for seven other states and cities showed California ranks second to Chicago in the percentage of women executives and is ahead of only Florida and Georgia in the percentage of board seats held by women.

Good business sense

Businesses do better with more women sharing in the key leadership positions, Ellis said, and she pointed to recent research to back the claim:

• Corporate Social Issues Reporter found that the number of Fortune 100 companies that stated or implied that they take race and gender into consideration when evaluating nominees has doubled over the last two years.
• A study published by the Wellesley Centers for Women shows that a critical mass of three or more women serving on a corporate board can cause a fundamental change in the boardroom and enhance corporate governance.
• Other studies published by Catalyst and The Financial Review found that gender diversity contributed to strong financial performance and good corporate governance.

Leading the way

Among the companies receiving special recognition, top-ranked Hot Topic has three women among its seven directors and seven more among its top 15 executives. Last year, the apparel and accessories retailer ranked second and is one of only 11 companies to make the list both years.

The other top five companies have women in more than one-third of their executive suites and boardrooms: Bebe Stores, Brisbane; Gymboree, San Francisco; Golden West Financial, Oakland (since purchased by Wachovia); and Jack In The Box, San Diego.

The 20 others are: Advent Software, San Francisco; Charles Schwab, San Francisco; Clorox Co., Oakland; the Gap, San Francisco; DreamWorks Animation, Glendale; BRE Properties, San Francisco; Design Within Reach, San Francisco; Hewlett-Packard, Palo Alto; Hyperion Solutions, Santa Clara; Advanced Medical Optics, Santa Ana; Longs Drug Stores, Walnut Creek; McKesson Corp., San Francisco; McClatchy Co., Sacramento; IHOP, Glendale; ABM Industries, San Francisco; AMN Healthcare Services, San Diego; Westaff, Walnut Creek; Wells Fargo & Co., San Francisco; FirstFed Financial, Santa Monica; and Molina Healthcare, Long Beach.

Westaff of Walnut Creek, one of the nation's largest staffing firms, sponsors both the UC Davis center and the study. Major sponsors of today's event are Sonnenschein Nath & Rosenthal's San Francisco office and Santa Clara Valley National Bank of Palo Alto.

For a copy of the study and other information, including data by counties, please see http://www.gsm.ucdavis.edu/census.

The Forum for Women Entrepreneurs and Executives is a nonprofit network that promotes the success of women entrepreneurs and executives. It offers peer-to-peer networks, and professional and educational programs. BoardMatch is a new service designed to increase the number of women on boards and support them. For more information about BoardMatch, see http://www.fwe.org/p/p.asp?mlid=1178.

The UC Davis Center for Women and Leadership is a Center of Excellence at the university and was established to improve the standing of women in business leadership positions. It conducts research and education on women and leadership issues and collaborates with women's leadership organizations.

The UC Davis Graduate School of Management, celebrating its 25th anniversary, provides management education to more than 400 students on the Davis campus, in Sacramento and in the San Francisco Bay Area. Among its national rankings, The Princeton Review has recognized it as one of the top 10 business schools providing the greatest opportunity for women.

Media contact(s):

• Katrina Ellis, Graduate School of Management, (530) 754-8407, klellis@ucdavis.edu
• Chris Melching, Forum for Women Entrepreneurs and Executives, (650) 269-7155, chris@FWEandE.org
• Nora Denzel, FWEE's BoardMatch service, (650) 233-4764, BoardMatch@FWEandE.org
• Nicole Woolsey Biggart, Graduate School of Management, (530) 752-7366, nwbiggart@ucdavis.edu