Women in Finance

AUGUST 2018 | FUTUREOFBUSINESSANDTECH.COM

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Women in Finance Meet Stacey Cunningham,

the first female president of the New York Stock Exchange in its 226-year history.

HEAR from an expert in executive recruitment about how financial institutions can find qualified women BROWSE more stories online, including Orange Grove Consulting’s discussion on barriers blocking women in finance

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Discover ten reasons why majoring in finance is a smart choice for young women. Page 4

in this issue

Research reveals the best strategies for closing the gender gap in financial services. Page 5

Top executives give expert advice for women wanting to succeed in the financial world. Page 7

There Is a Talent Shortage in Finance, and Women Can Fill the Void The numbers don’t lie, women are needed in financial services.

But how can companies better their recruitment and development processes?

PHOTO: JOHN CALABRESE

F

inancial services companies take great pride in their ability to adapt. They’re known for responding accordingly to shifts in markets, demographics, geopolitics and consumer preferences.

So why are these companies so slow to adapt to the growing influence of women in the workforce? More importantly, what can be done to help them recruit, retain and promote women into positions of leadership?

Let’s take a look at the financial advice profession. Today, just two out of 10 financial advisors are women. That’s pitiful when you consider that women comprise 51 percent of the overall U.S. population and are soon expected to control an estimated $22 trillion in wealth, according to Boston

Frederick P. Gabriel Jr., Editor, InvestmentNews

College’s Center on Wealth and Philanthropy.

What makes the situation even worse is that women are desperately needed in the advisor workforce. The average age of a financial advisor is 51, and 38 percent of advisors expect to retire in the next 10 years, according to Cerulli Associates.

Women can — and should — fill that gap. They bring important skills such as problem-solving, empathy and active listening to the table. They’re also ideally suited to work with the growing number of women taking control of significant financial assets.

Where change starts InvestmentNews — the No. 1 publication and website read by financial advisors — along with financial services giant Charles Schwab,

recently gathered more than 50 of the industry’s most influential women to discuss how firms may recruit, and retain, more women.

Here are just a few of the ideas we came up with: 1. Understand women’s “money motivators” and structure compensation accordingly Many women are deterred by the perception of an “eat what you kill” mentality. Firms should embrace stability and team-oriented goals with their compensation packages.

2. Invest in training and ongoing development Firms should invest in women’s education and career development, and clearly define expectations and opportunities for advancement within their organizations.

“38 percent of advisors expect to retire in the next 10 years.”

3. Lead by example Firms that are committed to bringing more women into the fold should state so in their mission statements and make sure this focus is reinforced to employees and clients.

The time is ripe for change.

New technology, regulation and greater client demand for relationship-based services are bringing disruption to the industry.

These challenges present a clear opportunity for greater inclusion of women. n

Publisher Brenda Choi Business Developer Joelle Hernandez Managing Director Luciana Olson Content and Production Manager Chad Hensley Lead Designer Celia Hazard Designer Keziah Makoundou Copy Editor Erin Mathis Production Coordinator Josh Rosman Print Contributors Pam Bixby, Kristen Castillo, Frederick Gabriel, Emily Gordon, Michele Ocejo, Angela Ribuffo Cover Photo Credit Jaime Cody Photography This section was created by Mediaplanet and did not involve USA Today.

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How 4 Women in Finance are Clearing the Path

4. Marianne Lake Lake is one of the most senior women on Wall Street. The chief financial officer for JPMorgan Chase, Lake is credited for introducing automation technology, including a new company-wide platform that oversees regulatory capital. If that was not enough, she is also a single mother of three children, juggling a high-profile job and family demands.

So, while there is a gap in financial services, there are also hundreds of inspirational role models that are putting some mighty cracks in the glass ceiling and are clearing the path for a new generation of female leaders. I might have missed them when I was a child, but my young and ambitious daughter certainly will not.

She’s watching so amazing women doing so many amazing things, and is shown everyday what she can become. n

By Joy Schoffler, Chief Strategy Officer, Casoro Capital

By Emily Gordon

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1. Abigail Johnson Johnson went from answering phones in the customer service department at Fidelity Investments to now leading the fourth largest asset manager as its chief executive officer. These days, Johnson is embracing innovation and is a vocal supporter for the wider use of blockchain.

2. Adena Friedman Friedman became the first woman to head up a global exchange company in 2017 when she was named CEO of NASDAQ. Friedman

“Women occupy 20 percent of executive committee roles and only 22 percent of board seats.” realized the exchange company could do more for investors and launched a technology based data analytics hub that helps inform decisions.

3. Carrie Russell Russell, a former executive at TD Bank and executive strategic advisor to Finn AI (who also happens to have a female CEO), is leading the charge helping banks and financial services companies better serve underbanked populations through artificial intelligence and natural language processing that helps customers save more, see spending patterns and improve their credit scores.

Financial Organizations may need to take a creative approach to establish a more gender-inclusive recruitment process.

“There’s never been a better time for women who are working in finance,” declares Heather Hammond, the area manager of the New York and Stamford offices of executive search consulting firm Russell Reynolds Associates.

Because of the spotlight trained on the talent shortage in finance and an ever-increasing recognition of the innovation-driving boost that diversity can bring to a business, “there is a mandate by our clients to ensure that our slates [of candidates] are diverse,” Hammond shares. “Companies are saying to us: ‘we want at least half of the slate to include women.’”

In order to deliver on this demand, however, Hammond conveys to her clients that the traditional boundaries of executive search may be too narrow to bring in that diverse pool of talent they desire. “The only way to push for a gender-balanced slate of candidates is by finding and pursuing creative solutions,” she explains. “If you can’t find women in the obvious paths and the obvious areas, you need to get more creative around where you find them.

For example, if we’re doing an investment banking search and the ranks of investment banks are thinly populated with senior women, then we collectively need to go outside those general boundaries to find senior women in places like corporate development or in equity research.”

A key aspect of this expansion, Hammond adds, is committing to a new mindset about the search so that candidates found outside of traditional parameters don’t feel like a “plan B.”

The future is female — thanks to the handful of powerful women presently paving the way. rowing up, I was fascinated by finance. I read books on investing in high school, started a real estate investment club in college and talked about finance way more than was cool at the time. However, in my hunt for content and role models there were few women in mainstream financial services that I could look to for inspiration. Add technology to the mix, and the number of women shrank by an even greater extent.

Today, the financial industry landscape looks quite different. While more work needs to be done in to elevate women into executive positions, there is no shortage of incredible role models in financial services today who are making a difference their fields. An analysis conducted by Harvard Business Review of 50 large financial institutions found that women occupy 20 percent of executive committee roles and only 22 percent of board seats. True, this number is not great by any stretch of the imagination. However, there are some amazing ladies blazing trails that will continue to drive that percentage higher for all of us.

Here are just a few powerful women who are not only leading the charge in finance but are innovating fields not known for accepting change:

Recruiting Women Into the Ranks of Financial Leadership

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10 Reasons Why Women Should Major in Finance Considering a career in finance? Here’s an outline of all the benefits you could encounter.

1. The opportunities and career path options are endless.

The industry is broad — including investment banking, private equity, corporate finance, portfolio management, industry research, wealth management, financial planning, real estate, insurance and more — offering myriad positions to explore through a long career.

2. It’s a meritocracy.

In finance, performance matters. Hard work, attention to detail, intellectual curiosity, strong communication, creativity, innovative thinking, great teamwork and the ability to execute on ideas are what is valued.

3. It’s an education unto itself.

Investment banks and other financial firms

provide rigorous training and an excellent foundation of knowledge and skills that can be transported anywhere. Even if your career path ventures outside the industry, you’ll forever have a valuable understanding of finance that will help you make smart choices throughout your life.

4. The compensation is attractive.

Investment bankers are some of the highest paid professionals, and compensation includes a base salary and bonus.

5. It’s a relationship-based industry that values women’s strengths.

Sales and trading requires great communication skills and the ability to cultivate relationships. In wealth management, there is an emphasis on long-term relationship-

building and advisors become very involved in supporting their clients’ life goals.

6. You will develop a huge professional network.

Banking and investment management provide abundant networking opportunities, and you will build a diverse list of contacts to tap throughout your career.

7. There is a good level of job security.

Because tax law, the regulatory environment, and the political landscape are everchanging, the finance industry continues to expand. Everyone is looking for talent, always.

8. It’s exciting.

A career in finance allows you to have

a direct impact on the economy, as the industry is integral to global growth and impacts every other industry. It is constantly evolving and innovating to meet the needs of a changing world.

9. It is rewarding.

Watching your investment ideas create wealth or helping companies grow and expand is incredibly satisfying.

10. Firms are looking for women.

Today, the percentage of women in senior investment banking is lower than in other areas of banking. For this reason, investment banks are placing greater emphasis on recruiting and retaining women. n

By Pam Bixby, Editorial Writer, Forté Foundation

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How to Attract and Retain More Women in Financial Services WOMAN IN INSURANCE AND FINANCIAL SERVICES (WIFS)

The STEM initiative showed us how. Now it’s time for the financial industry to follow suit.

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magine stepping into a revolving door, it stopping midway, then continuing only to stop at the exit to the outside. This happens to many women entering the financial services profession. That’s why the mission of Women in Insurance and Financial Services (WIFS) is to attract, develop and advance women in this profession — a mission that can be achieved alongside a joint effort with educators, industry leaders and practicing professionals. Key areas that require focus include early introduction to the career during formative years and continued culture adaptation to women’s needs.

Young women need to be presented with more career options. Attraction should begin by introducing the profession to

women in high school and college, similar to the STEM initiative’s approach. Current research from WIFS, Cerulli and Associates, and State Street Global Advisors shows the percentage of women in our profession is as low as 15.7 percent to 23 percent, and has not significantly increased in decades.

In WIFS’ 2012 research study of 1,000 respondents, the median annual income of women in finance was $89,000. It’s a profession with limitless earning potential built on problem-solving and relationship building — a natural fit for women, especially those who have been out of the workforce and want to return, or those looking to change careers.

Once they are in, how do we keep them?

First, work-life balance, mentoring and

support, and alternative compensation models are important. Next, gender neutral workplace cultures — while still providing training that supports the natural skills and abilities of women — must be explored by the industry. And finally, instituting compensation models that provide women with the income needed to be self-sufficient early in their careers creates an atmosphere for success.

We believes the gender gap in financial services can be closed. Women are transforming the industry, and are opening up great opportunities for other women seeking fulfilling careers. n

By Angela Ribuffo, National President, Women in Insurance and Financial Services

Are Women the Secret Weapon of the Financial Advisory World?

Personal finances are all-too-often stressful business. That’s why, in the world of financial advising, a true personal touch can make all the difference — and women are leading the way.

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According to a BMO Wealth Institute report, women now hold over half of American wealth. Yet the financial industry has failed to keep pace with shifting wealth demographics; women account

for a mere 32 percent of personal financial advisors. Bridging the gap requires busting dated myths about the business and embracing the ways women work.

A natural fit “I got into the industry because foundationally I felt like I was very good with money and finances and analytics,” says Jennifer Bacarella, the director of firm development

and a member of the executive committee at Sigma Financial Corporation. “But being able to incorporate [a client’s] wishes and how they feel about their family, that part drew me in.”

“I think there may be a misnomer that you have to really be good at picking stocks,” adds Betsy Strong, the President of Strong Legacy Planning, who notes that the qualities she’s found most valuable

in the job are empathy and intuition.

Though women may fear the unpredictability of building — and maintaining — a client base, Katie Buck, who joined her father-inlaw’s firm, the E.A. Buck Family of Companies, as the first female advisor, and now serves as CEO and wealth manager, shares that women “can gain back the attributes they crave the most, which

are freedom and flexibility. One of the best parts of my day is that I own when I work and how I work.”

The next generation Now, as a large portion of the advising workforce approaches retirement age, Bacarella suggests that the push towards gender equity in the industry may depend on breaking entrenched norms of mentorship and succession. Because many of today’s advisors built their careers in a “very male-centered” industry, “they only think about bringing men into the industry,” she says. But through increased discussion and networking opportunities, such as the annual conference of Sigma’s Women’s Forum, the tide is turning. “All [female advisors] think about is bringing more females into this industry,” says Bacarella, “because we love it, it’s great, we make a tangible difference and we know how much our segment is underserved.” n OFFICE OF SUPERVISORY JURISDICTION: 300 PARKLAND PLAZA, ANN ARBOR, MI 48103

By Emily Gordon

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Betty Hernandez

Kathleen Z. Lepak

Executive Vice President-Chief Asset Based Lending Business Credit Officer, North Mill Director, People’s United Capital LLC Business Capital

Successful female executives speak about the benefits of going down a not so sought-after path.

No one grows up thinking, “I want a career in asset-based lending (ABL) or factoring.” The executives I speak with usually tell me they just sort of “fell into it” and, they usually add, they are glad they did. ABL and factoring are niche financing products offered by a wide range of institutions, from major banks to small, independent and entrepreneurial companies. A few things set them apart from other forms of financing: ABL focuses first on the assets of a prospective borrower as collateral and factors focus on purchasing a company’s accounts receivable to provide working capital. Both serve the borrowing needs of businesses that may not totally qualify for traditional bank financing. And, executives of both ABL and factoring firms, build true relationships with their clients. ABL and factoring are now mainstream lending options preferred by many companies in need of critical growth and working capital. Young women starting their careers may be wondering, “Why should I go into this field of finance?” To answer that question, we turned to two successful female executives.

Kathleen Z. Lepak, the asset based lending business director of People’s United Business Capital, states that, “Asset-based lending is a great career for a young womanlooking to build her credentials in the world of finance. No other financial discipline can provide the depth and quality of credit training, the practical, hands-on approach, and the ability to learn how businesses operate. Knowledge and experience gained from ABL will positively impact a young woman throughout her career, wherever her path takes her.”

Betty Hernandez, the executive vice president-chief credit officer of North Mill Capital LLC, adds that, “Young women should consider a career in the ABL/factoring arena because it is an exciting area of finance offering a vast array of opportunities. We are an integral piece of the puzzle to both small and large companies, serving as a sounding board to hear management’s concerns and share their vision for growth and expansion. Historically, we have dealt in a male-dominated world, but that world has changed and younger women are an integral part of the work force in non-traditional fields and roles.”

By Michele Ocejo, Director of Communications, Commercial Finance Association.

How One Woman Worked Her Way to the Top of the Financial World

PHOTO: JAIME CODY PHOTOGRAPHY

Seeking a Niche Career in Finance? Consider ABL or Factoring

Stacey Cunningham, the new president of the New York Stock Exchange, is the first woman to ever to hold the position.

H

er path to the top of the financial world took a few turns.

She didn’t start out in finance. In fact, Cunningham was an engineering student at Lehigh University in 1994 when she took an internship at the NYSE, the largest stock exchange in the world. Soon she was working there, unfazed by being a woman in a male-dominated industry.

Cunningham had career success using those problem-solving skills she learned in engineering classes, but stopped to pursue her other passion — cooking. In 2005, she quit Wall Street to enroll at the Institute of Culinary Education. A few years later though, the respected equities industry pro was back at the stock exchange.

“When you really love what you’re doing, it’s really easy to do it every day and it’s much easier to work your way through challenges and conflicts and stay focused on what you want to achieve.”

Cunningham now finds herself situated among other powerful women of Wall Street, such Adena Friedman,

who became President and CEO of Nasdaq in 2017.

Gaining respect Contrary to what people might think, Cunningham’s gender has helped her career.

“The fact that I was a woman, allowed me to have a much higher profile than many of the people I worked with,” she says. “I’ve been fortunate that my gender hasn’t been an impediment.”

Cunningham, 43, says the tone in her industry is more respectful now than when she started nearly 25 years ago.

“In early days, when women started to participate in financial markets, there was a view that they could be there if they acted like one of the guys and I don’t think that’s the case anymore,” she says.

Still, there’s room for progress and improvement in the mainly male industry.

Cunningham says it’s important to bring in people with diverse backgrounds, viewpoints and perspectives. “If that’s the focus, you’re going to find you have a much more diverse

team across gender, race and socioeconomic backgrounds,” she says.

In an era of #MeToo, it’s essential to speak up when something is wrong.

“Draw boundaries early on,” she says. “When you have initial interactions, you’re setting a tone. It’s important, if something makes you uncomfortable, right away say it makes you uncomfortable.

“In my experience, when I’ve drawn boundaries, I’ve found that people stay within them.”

Asking for help Throughout her career, Cunningham has learned from everyone around her, including coworkers and bosses. She says relationships are important for professional success and advises building a team of people with different skills and perspectives.

Ask for opportunities and don’t be afraid to ask for assistance too.

“Perhaps women are less likely to ask for help and they shouldn’t be — that’s an important part of any venture,” she says. n

By Kristen Castillo

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Experts in the Financial Industry Offer Advice for Working Women Smash the archaic belief that women can’t have it all. These industry leaders prove that finding a work-life balance is possible on your path to the top.

What is the biggest obstacle you faced during your career and how did you overcome it?

Vickie Wicks: The biggest obsta-

Vickie Wicks, Principal and Financial Advisor, Edward Jones Investments

Alexandra Taussig Senior Vice President of Lifetime Client Engagement, Fidelity Investments

Jennifer Bacarella Executive and Director of Firm Development, Sigma Financial Corporation

Rebecca Glasman Co-Head of Diversity and Inclusion, Russell Reynolds Associates

cle I faced during my career was myself. I’m driven, strategic, strong and caring, to a fault. I’d take every client, even those who don’t value working with an advisor. I thought that working hard and putting in longer hours than anyone else was how to take care of my clients, myself and my family. I was wrong. Working smarter, taking time to enjoy the journey and helping other people learn from my mistakes was really the reward that I found fulfilling. Trying to be all things to all people was exhausting and humiliating at times. I feel many women are like me. They try to do everything and it doesn’t work.

But we won’t admit it. We just keep trudging along and saying: “It’s OK. I’ve got this!” It’s not OK. Finally, after 20 years of being a financial advisor, I met a wonderful mentor who encouraged me to look at myself and truly admit what I was doing to myself, my clients, my career and my family. It was a tough month, but I changed. I’m a new person who has overcome the “I’ll do this alone” mentality. So today: I am an empowering, balanced woman who listens and plays win-win with clear communication. That is my daily mantra. I believe it, I live it and it works. My family is happier, my clients are happier, and I am much more calm, cool and purpose driven. I’m working with the right people in the right way and creating balance in my life that allows me to serve everyone better.

Alexandra Taussig: The most challenging time in my career was when I was raising three small children. At the time, my husband Billy was practicing law, and I was beginning my career at Fidelity. We were trying to balance advancing our careers while still making time for our family, our relationship and ourselves — there were never enough hours!

At times, it felt a bit like a house of cards and if one of those cards collapsed the whole thing could come tumbling down. I learned however, to give myself some grace, accept that life requires some give and take at times, and recognize that I was doing a pretty great job at being a working mother. I learned to carve out time for things that were truly important, such as date nights with my husband and my boys’ games and school events, and worry less about the house being in perfect order every day.

Jennifer Bacarella: Maintaining

a work-life balance while being an executive, a financial advisor and a mother. I spent most days feeling guilty that I wasn’t succeeding at any of my three roles as there wasn’t enough time in the day. I had to really build a team that I could rely on, whose strengths were my weaknesses, who could help me succeed in ways I never could alone. What blossomed from that was the opportunity to be a mentor, and help so many individuals reach their own goals so that we were successful together.

and had to reignite my career in an imploding financial services sector. I kept calm, surveyed the landscape and drew on longstanding relationships. As a result, I had my busiest year ever, helping to build restructuring teams.

If you had one piece of advice for women looking to find success in finance, what would it be?

VW: One piece of advice for

women looking to find success in finance would be: just do it.

If you want to make an impact that will provide a foundation of success for everyone you serve — your family and your community — this career is for you. As a woman, you are naturally suited to understand the needs of those you care about. You run a home, you raise your children, you support your spouse or significant other. This is the skill set needed to deeply serve your clients in the financial world. They need empathy, they need strategic planning skills, they need someone with the ability to communicate the pros and the cons of any plan. So, why not you?

AT: Bring your whole self to work,

including your empathy and compassion. In my role, I’ve found that when we take the time to think about what it’s like to walk in someone else’s shoes, we’re able to have a greater impact on behalf of our clients and our colleagues.

Women are a critical part of the future of financial services and I would love if more women would

“I thought that working hard and putting in longer hours than anyone else was how to take care of my clients, myself and my family. I was wrong.” consider our industry, and Fidelity, for their careers. At Fidelity, we are committed to providing benefits and programs to enhance our culture that will help us to develop and retain our women leaders.

JB: Learn to say “no” so your “yes”

has more oomph. When I started out my mentor told me to say “yes” to everything which opened a lot of doors for me but also made it hard for me to stay focused and goal centered. I found that I would drop what was important to me and jump into something else. I sacrificed a lot of my own personal growth to be a jack of all trades.

RG: Seek out sponsors at senior

levels both within and outside your organization whom you can count on for support — even, or especially, when you’re not in the room — and for honest feedback.

Take positive feedback as seriously as the “constructive” kind.

Rebecca Glasman: I returned

from my third (and final) maternity leave in September 2008

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