2014 Minnesota Census of Women in Corporate Leadership

The 2014 Minnesota Census of

Women in Corporate Leadership:

How Minnesota’s Top 100 Public Companies Rank

Gender Dividend THE

Three Minnesota CEOs—all men—speak out about the importance of women in leadership roles.

Doug Baker, Ecolab, CEO

LETTER FROM THE PRESIDENT

Roll Up Your Sleeves This year's census shows there is work to be done.

by Lyndel King President, Minnesota Women’s Economic Roundtable

S

t. Catherine University and the Minnesota Women’s Economic Roundtable (MWER) have collaborated to produce the Minnesota Census of Women in Corporate Leadership since 2008. In that time, our state’s top 100 public companies made some progress in diversifying their boards of directors and increasing the percentage of women executive officers, but this year the report shows that progress has slowed.

In 2008, when the first Minnesota Census was published, women held 117 corporate board seats, and only four were CEOs in the state’s top companies. By 2013, there were 119 women board members and seven CEOs. In 2014, the percentage of women corporate board members remained flat, at 18.6 percent, but this still represents the highest percentage of women corporate directors recorded to date. In 2014, the percentage of women executive officers decreased slightly, from 20.8 percent to 19.8 percent.

It is clear that we still have work to do to increase the percentage of women in both corporate executive leadership and on boards of directors. The good news is that there was, in 2014, a slight increase in directors who are women of color.

A Time magazine article in June 2014 noted that nationally, growth in the percentage of female executives also has remained stagnant. The article pointed out that although women comprise nearly half of the workforce, only 14.3 percent hold top executive office positions at Fortune 500 companies and only 20 percent are in senior management roles.

I hope that those Minnesota companies listed on the honor roll in this report—those with at least 20 percent women corporate directors and at least 20 percent women executive officers—will take pride in their achievements and lead the way in encouraging their peers to include women in leadership roles in their executive suites and on their boards. We all know that it is not an issue of whether there are qualified women to fill these roles—there definitely are. What likely will be required to provide more opportunities for women to lead in America’s corporations—to finally shatter those glass ceilings—are mentoring programs for women, stronger family support policies and equal pay structures. While government can play a role, particularly in the area of equal pay, it is really up to today’s corporate leaders to initiate policies that allow women to realize their potential as leaders in America’s corporations.

American business will definitely benefit from having more women involved in the decisionmaking that will guide America into the future.

For 40 years MWER has provided a forum to discuss, encourage and support the advancement of women leaders in our community. We are happy to support the research to document women’s leadership roles in American business, and look forward to the future. u

Table of Contents 1 Letter from the President 2 Census Highlights 3 Executive Summary 5 2014 Minnesota Census Honor Roll and Special Distinction Companies 7 Holding Steady: Women on Boards of Directors 11 Leading the Way: Minnesota companies leverage the gender dividend.

13 To Lead and Influence: St. Kate's students on corporate leadership How Minnesota Companies Rank 15 Women Corporate Directors 17 Women Executive Officers 19 Women Directors and Executive Officers by Company 20 Methodology 21 Leading Ladies: Minnesota small business leaders offer proof that women belong in the boardroom.

21 Information Resources Photos: By Rebecca Zenefski, Rebecca Studios (pages 12, 1314, 21-22)

ON THE COVER: Doug Baker, CEO of Ecolab, has made it a high priority to develop better gender balance and diversity on Ecolab's board. The company joined the Minnesota Census Honor Roll this year.

Photography by Travis Anderson

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Census Highlights Women corporate directors and executive officers

T

he 2014 Minnesota Census of Women in Corporate Leadership examines the percentage of women in leadership roles at the 100 largest publicly held companies headquartered in Minnesota as ranked by 2013 net revenue.

Board positions reflect current leadership roles in corporate governance, while executive officer positions provide a path to future leadership roles in corporate governance.

Recent research indicates that companies appointing women leaders to corporate director and senior executive roles reap a “gender dividend,” a significant return on investment in diverse leadership with financial, market, governance and talent implications.

Data from this year’s Minnesota census suggests that fewer Minnesota companies are reaping the gender dividend of diverse leadership: Minnesota’s largest 100 public companies reported a net decrease in both women corporate directors u and women executive officers in 2014—a drop of three and seven, respectively. This net decrease represents a reversal from 2013’s significant progress.

Forty-eight of Minnesota’s 100 largest publicly held companies had both women corporate directors u and women executive officers in 2014, four fewer than 2013.

Twenty of Minnesota’s 100 largest publicly held companies have no women directors or executive ofu ficers in 2014, two more than 2013. Minnesota’s “zero-zero companies” are on the rise.

Minnesota companies reporting higher revenue are more likely than smaller companies to have women u in both the boardroom and the executive suite, a reflection of national trends.

Two companies had a net increase in both women directors and women executive officers in 2014: u H.B. Fuller and Patterson Companies.

About the Census This report is produced

by St. Catherine University and is co-sponsored by the Minnesota Women’s Economic Roundtable (MWER).

Financial support provided by C.H. Robinson, YWCA Minneapolis and the Women's Foundation of Minnesota.

Three companies had a net decrease in both women directors and executive officers in 2014: u Capella Education, CyberOptics and Famous Dave’s of America.

St. Catherine University is proud to acknowledge these sponsors of the 2014 Minnesota Census of Women in Corporate Leadership:

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EXECUTIVE SUMMARY

Dancing in Place

Women leaders in Minnesota companies find fewer prospects.

By Joann Bangs, Ph.D., and Rebecca Hawthorne, Ph.D., St. Catherine University

D

ance steps: One step forward, two steps back; two steps forward, one step back. Women continue to move forward and back joining the ranks of America’s corporate leaders. Progress has stalled. Women are dancing in place.

Catalyst, a nonprofit organization dedicated to women’s advancement in business, reports that 2013 was the eighth consecutive year that Fortune 500 companies did not record significant growth in the percentage of women corporate directors and the fourth consecutive year there was no significant growth in the percentage of women executive officers.

Women hold 17 percent of Fortune 500 board positions, 15 percent of C-suite executive positions and 5 percent of CEO positions (Catalyst, 2013). The increasing scarcity of women rising in corporate ranks reflects a substantial loss of talent and a well-documented negative impact on the bottom line (McKinsey & Company, 2013).

Women comprise 47 percent of the U.S. workforce and hold

51 percent of management and professional jobs, yet they remain outnumbered at all levels of corporations (McKinsey & Company, 2013). The “leaky pipeline” manifests disparate odds of advancement for men and women: u Men are three times more likely to advance from entry-level jobs to middle management than women are. u Men are two times more likely to advance from middle management to senior management and vice president. u Men are two times more likely to advance to seats on the executive committee. u Men are five times more likely to advance to CEO. Women, despite “leaning in” to career opportunities as Facebook COO Sheryl Sandberg (2013) suggests, frequently find themselves treading water.

Extensive research documents the importance of “place” in determining drivers of gender diversity (McKinsey, 2013; Bain & Company, 2014). Corporate culture and the ecosystem it shapes play major roles in at-

Minnesota Companies with Women at the Table No Women Executive Officers One Woman Executive Officer Two Women Executive Officers Three or More Women Executive Officers

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13% 40% 17% 30%

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Joann Bangs

Rebecca Hawthorne

tracting, retaining and promoting highly qualified women to senior leadership roles.

Corporate culture is twice as important as is individual mindset in supporting women’s belief in their ability to succeed. “Leaning in” requires structural support as well as shifts in both individual and corporate mindsets.

The Minnesota Census of Women in Corporate Leadership identifies those public companies within our state that have provided both the structural support and corporate mindset necessary for women and men to succeed in senior leadership roles. The business case for diversifying corporate leadership is strong: improved financial performance, talent leverage, enhanced reputation, market reflection, increased innovation and stronger governance performance. In order to harness the full potential of the Minnesota economy, talented women as well as men must attain and excel in corporate leadership roles.

Minnesota’s public companies stepped backward in 2014 in diversifying corporate leadership.

Two steps back The seventh annual Minnesota Census of Women in Corporate Leadership reveals no progress in diversifying Minnesota boardrooms and senior executive suites. In fact, Minnesota’s largest 100 public companies (revenues ranged from less than $.5 million to $112 billion) reported a net decrease in both women corporate directors and women executive officers, reversing last year’s significant progress.

Women continue to hold 14.9 percent of the board seats of Minnesota’s 100 largest publicly held companies in 2014. This reflects no change in the percentage of board seats held from 2013 to 2014. The total number of available board seats decreased by 23 in 2014, with a net decrease of three women directors. In hard numbers, women filled only 14 of the 87 board seats that became available at Minnesota companies in 2014. The lack of progress in women’s board representation is discouraging.

Women executive officers lost representation in senior leadership roles (Section 16(b) positions), dropping to 17.8 per-

Finding the silver lining

cent in 2014, down 0.8 percentage points from 2013 levels. The number of open executive officer positions decreased by 11 across Minnesota’s 100 largest publicly held companies, from 641 in 2013 to 630 in 2014, reflecting an ongoing trend across the state’s public companies over the past several years. Women moved backward in attaining executive leadership roles in 2014.

Two Minnesota companies stand out—bucking the trend and adding both women directors and women executive officers to senior leadership to achieve a net increase in both in 2014. H.B. Fuller had no women directors in 2013 and added two women directors to its board in 2014. The company also added one woman executive officer to gain Honor Roll status in the Minnesota Census of Women in Corporate Leadership. Patterson Companies added two executive officer positions, one of which is held by a woman. The company decreased its board size by one seat and appointed a woman director. These changes moved Patterson onto the Minnesota Census Honor Roll and Special Distinction status. Noteworthy progress in 2014!

Fortune 500 companies in the top 25 percent when it comes to women’s representation on their boards outperform those in the lowest 25 percent by at least 53 percent on return on equity.”

A growing body of research also illustrates the positive impact women leaders make once that critical mass is reached, including: u Higher organizational and financial performance (McKinsey, 2013) u Increased return on equity when boards were made up of about 30 percent women (Galbreath, 2011) u Increased innovation (Dezso and Ross, 2012) u Improved group performance (Woolley, Chabris, et al, 2010).

Progress in moving toward critical mass represents the silver lining in the 2014 Minnesota Census findings. Five companies moved from the pervasive “onewoman show” on their boards or senior executive teams to two or three women. Ameriprise moved from one to three women on its board. NU Telecom gained a second woman on its board.

Ecolab increased from one to three women executive officers.

Fastenal and Proto Labs each moved from one to two women executive officers.

The strong commitment of the CEO—whether male or female—and top leadership to gender diversity is critical in reshaping corporate culture and challenging mindsets. “The message that gender parity is important needs to start with the CEO and cascade down through top leaders” (Bain & Company, 2014).

Catalyst researchers made the business case in 2007: “The link between gender diversity and business outcomes is evidenced in the performance of companies with a more robust mix of women and men in senior management. Today,

However, one woman director and/or one woman executive officer remains the most common practice across Minnesota’s 100 largest publicly held companies with women leaders.

Defining the CEO field In 2014, the number of female CEOs across Minnesota’s 100 largest publicly held companies

Number of Women in Leadership

Women at the Table: Seven-Year Trend 25%

Number of Companies 20.8

20%

16.8 16.7

17.4

16.9

17.9 17.5

19.0 17.7

18.3

19.2

18.7

19.8 18.5

15%

10%

5%

2009

% Women Directors

2010

2011

2012

% Women Executive Officers

2013

2014

Women Executive Officers

40

No women executive officers

30

One woman executive officer

17

Two women executive officers

13

Three or more women executive officers

Number of Companies

2008

dropped from seven to these six companies: Buffalo Wild Wings, Select Comfort, Christopher & Banks, Electromed, Proto Labs and Clearfield.

These companies continue to provide strong role models for women leaders. In addition, two of these companies, Select Comfort and Christopher & Banks, hold Special Distinction status this year, with 30 percent or more women directors and 30 percent or more women executive officers. Another, Electromed, holds Honor Roll status, with 20 percent or more women corporate directors and executive officers.

These companies reveal the “trickle-down effect” that occurs in companies with women CEOs and several women board members. Such companies tend to have more women executives. An analysis commissioned by the Wall Street Journal reported that 54 percent of Standard & Poor’s 1500 Index companies with women CEOs have at least three women corporate directors. Only 15.5 percent of index firms led by men had at least three women corporate directors. u

Women Directors

32

No women directors

38

One woman director

15

Two women directors

15

Three or more women directors

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2014 HONOR ROLL AND SPECIAL DISTINCTION COMPANIES

A Delicate Balance Small changes slow momentum, but the outlook remains bright.

FORTUNE® 500 Ecolab Inc. CEO Douglas Baker, Jr.

*

Target Corp.

John J. Mulligan, interim CEO as of survey close date

Other Companies

*

Christopher & Banks Corp.

CEO LuAnn Via Deluxe Corp.

CEO Lee L. Schram

H

onor Roll and Special Distinction companies provide successful models for attracting and retaining highly qualified women leaders.

They provide the support necessary to encourage both women and men to “lean in” to their careers. Women leaders themselves, their male colleagues and the companies within which they work hold joint responsibility for addressing the barriers that hold women back from attaining a critical mass of top corporate leadership positions— both internal barriers and the external, structural and cultural barriers identified by research. Structural and cultural change requires full stakeholder participation to succeed. The stakes are high for Minnesota's economy. To successfully compete globally, corporate leaders must engage the full array of talented Minnesota women and men.

Minnesota Census companies had boards ranging from two to 15 seats in 2014 and listed from one to 17 Section 16(b) executive officers. Therefore, Honor Roll criteria focus on the percentage of women corporate directors and executive officers.

Companies with 20 percent or more women corporate directors and executive officers receive Honor Roll distinction.

Special Distinction is awarded to companies with 30 percent or more women directors and executive officers. Companies are listed by revenue category and CEO, the people in the best position to serve as catalysts for change. Special Distinction companies are noted. u

Electromed Inc. CEO Kathleen Skarvan Enventis Corp.

CEO John W. Finke H.B. Fuller Co.

CEO James J. Owens HMN Financial Inc. CEO Bradley C. Krehbiel MTS Systems Corp.

CEO Jeffrey A. Graves NU Telecom Inc. CEO Bill D. Otis

*

Patterson Cos. Inc. CEO Scott P. Anderson

*

Select Comfort Corp.

CEO Shelly R. Ibach The Valspar Corp.

CEO Gary E. Hendrickson Special Distinction companies have 30 percent or more women *directors and 30 percent or more women executive officers. In 2014, four Minnesota companies attained this status.

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Minnesota Companies With Three or More Women Directors

General Mills....................................... wwwww Christopher & Banks.........................wwww Allete.............................................................www Ameriprise Financial............................www C.H. Robinson Worldwide.................www

Minnesota Companies With Three or More Women Executive Officers

Buffalo Wild Wings....................... wwwww Christopher & Banks...................... wwwww ValueVision Media......................... wwwww Select Comfort....................................wwww Supervalu ..............................................wwww

Ecolab...........................................................www

Target........................................................wwww

Hormel Foods..........................................www

Deluxe ........................................................www

Medtronic...................................................www

Ecolab..........................................................www

MTS Systems............................................www

H.B. Fuller ................................................www

Otter Tail.....................................................www

Hormel Foods.........................................www

Patterson Cos...........................................www

Patterson Cos. .....................................www

Select Comfort.........................................www

St. Jude Medical....................................www

Target............................................................www

Vascular Solutions ..............................www

U.S. Bancorp..............................................www Xcel Energy...............................................www

Departures and Additions The total number of Honor Roll companies decreased from 14 to 13 in 2014. Five companies joined in 2014; six departed. In some cases, Honor Roll companies left Minnesota due to relocation or acquisition. In many cases, the movement of one woman on or off the board or into or out of the executive suite drove Honor Roll membership, revealing the tenuous nature of the progress Minnesota companies continue to make toward changing the face of their corporate leadership teams.

2014 Departures: u Best Buy departed the Honor Roll after increasing the size of the board by two new seats and appointing men to fill both. u St. Jude Medical lost Honor Roll status by adding two executive officer positions held by men. u Capella left the Honor Roll after losing one executive officer position, the only one held by a woman.

It also lost a woman director when the board was reduced by two seats. u CyberOptics left the Honor Roll upon the retirement of CEO Kitty Iverson, decreasing the company’s reservoir of female executive officers and corporate directors. u Analysts International departed the Honor Roll due to its merger with American CyberSystems, based in Georgia. u Xcel Energy lost Honor Roll status due to the loss of an executive officer position held by a woman.

Christopher & Banks Deluxe HMN Financial MTS Systems Target

2014 Additions: u Ecolab gained Honor Roll status by adding two executive officer positions filled by women. Its board remained constant. u H.B. Fuller joined the Honor Roll by replacing one male executive officer with a woman. H.B. Fuller also added one board seat and two women directors. The company did not have any women directors in 2013. u NU Telecom returned to the Honor Roll by replacing one male director with a woman. u Electromed joined the Honor Roll for the first time by adding a woman to the board. u Patterson Cos. added two executive officer positions, one held by a woman. The company decreased its board size, but appointed an additional woman director to fill one of its remaining board seats.

Notable Honor Roll Longevity Five Minnesota companies have retained Honor Roll status over the past seven years: Christopher & Banks, Deluxe, HMN Financial, MTS Systems and Target. MTS Systems held Special Distinction status for six years, but lost the distinction this year after adding an executive officer position held by a man. These consistent Honor Roll companies maintain a diverse corporate leadership team despite director and executive officer turnover. Research documents the positive impact of at least three or more women on the board or on the executive leadership team (Torchia et al., 2011). In 2014, four Minnesota companies attained this critical mass of 30 percent women on both their boards and executive offices, receiving the Special Distinction.

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

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BOARDS OF DIRECTORS

Holding Steady

Minnesota's top 100 public companies show no growth in number of women on their boards.

Women Corporate Directors by Seats

Women Corporate Directors by Company

(Based on SEC filings as of June 30, 2014) u Women hold 14.9 percent (116) of the 777 available board seats in Minnesota’s 100 largest publicly held companies. This percentage remained flat from 2013, stalling after two previous years of progress. u A total of 87 board seats became available across Minnesota’s 100 largest publicly held companies in 2014. Fourteen of those seats went to women, or 16.1 percent of the available seats. u A total of 46 companies appointed new directors in 2014. Sixteen appointed two new directors to their boards. Eight added three or more new directors. Despite multiple new appointments across these 46 companies, only 14 women received board appointments across 12 companies. u Of the 87 new board appointees in 2014, 77 were new independent directors, presenting companies with 77 opportunities to diversify their board by gender. Only 12 of the 77 new independent directors appointed in 2014—15.6 percent—were women. u Across all 100 Minnesota companies, 16.9 percent of all independent directors are women.

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u Women serve on the boards of 68 of Minnesota’s 100 largest publicly held companies. This number has decreased by one since 2013. u Fifteen of the top 100 companies have three or more women corporate directors, 15 companies have two, 38 have one and 32 have none. The “one-woman show” (one woman director among otherwise all-male board ) remains the most common representation of women on Minnesota boards. u Minnesota companies reporting higher revenue tend to have a greater number and percentage of women corporate directors than smaller companies.

87 New Directors

Men 83.9%

Women 16.1%

Companies Where Women Made Gains Twelve Minnesota Census companies added women directors in 2014. Eight of those (*) had a net increase: u Ameriprise

Financial 2* 1 u Ecolab 1 u Electromed 1* u General Mills 1* u H.B. Fuller 2* u Image Sensing Systems 1* u Mosaic 1 u NU Telecom 1* u Northern Technologies 1* u Patterson Cos. 1* u Proto Labs 1 u BioAmber

Fifteen Minnesota Census companies had three or more women directors, achieving the critical mass that research suggests is essential to impact corporate governance.

Two of these companies (*) increased the number of women serving on their boards to three or more in 2014:

Women of Color Directors For the sixth year, the Minnesota Census examined directors’ seats held by women of color. Progress was made in 2014 with the appointment of two additional women of color to director positions. Women of color as classified by the U.S. Census Bureau include women identified as black, Hispanic, Asian, native Hawaiian and other Pacific islander, and American Indian or Alaskan native. u Sixteen of Minnesota’s 100 largest publicly held companies had women of color as directors in 2014, a net increase of one from 2013. Two of the 16 companies had two women of color serving on their boards. The 14 other companies each have one woman of color as director. u Women of color hold 2.3 percent of the available board seats in Minnesota’s 100 largest publicly held companies, an increase of 0.2 percentage points from 2013. u Eighteen women of color hold board seats. This represents 15.5 percent of the total board seats held by women directors in Minnesota’s 100 largest publicly held companies. u 84 Minnesota companies do not have any women of color serving on their boards. u Of the 15 Minnesota Fortune 500 companies, seven have one or two women of color on the board; eight have none. u Of the new 87 directors added to Minnesota’s largest publicly held companies in 2014, only three were women of color.

u Allete

(3)

u Ameriprise

Financial (3)* & Banks (4) u C.H. Robinson (3) u Ecolab (3) u General Mills (5) u Hormel Foods (3) u Medtronic (3) u MTS Systems (3) u Otter Tail (3) u Patterson Cos. (3)* u Select Comfort (3) u Target (3) u U.S. Bancorp (3) u Xcel Energy (3) u Christopher

Fewer Women Directors Eight Minnesota Census companies had a net decrease of one woman director in 2014. Two of these companies (*) now have no women directors: u 3M u Capella u CyberOptics u Famous Dave’s of America* u Hormel Foods u Piper Jaffray u SurModics u ValueVision Media*

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

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EXECUTIVE OFFICERS

Losing Ground

Minnesota's top 100 public companies slide in number of women in executive officer positions.

C

riteria for inclusion in the “executive officer” category vary by company. To be consistent, the Minnesota Census identifies only those individuals formally designated as Section 16(b) executive officers in SEC filings.

u Women hold 17.8 percent of the available executive officer positions in Minnesota’s 100 largest publicly held companies.

This is a drop of 0.8 percentage points from 2013 to 2014.

u Thirteen of the top 100 public companies have three or more women executive officers; 17 have two women executive officers; 30 have just one; and 40 have none (an increase of five companies from 2013).

u Minnesota companies reporting higher revenue tend to have a greater number and percentage of women executive officers than do smaller companies.

Fewer Women Executives

Women Doing Well

Twelve Minnesota Census companies had a net decrease in women executive officers in 2014, four more companies than 2013. Five of these companies (*) now have no women executive officers:

Ten Minnesota Census companies had a net increase in women executive officers in 2014, down from 13 in 2013.

Only Ecolab added more than one woman executive officer to its senior ranks:

u Ameriprise Financial (1)

u Christopher & Banks (1)

u Best Buy (2)

u Datalink (1)

u Capella (1)*

u Deluxe (1)

u Communications Systems (1)*

u Ecolab (2)

u CyberOptics (1)*

u Fastenal (1)

u Donaldson (1)

u H.B. Fuller (1)

u Famous Dave’s of America (1)*

u G & K Services (1)

u Regis (1)

u Hormel Foods (1)

u Select Comfort (1)

u Patterson (1)

u Target (1)

u Proto Labs (1)

u Uroplasty (2)* u Xcel Energy (1)

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The Top Executive Positions (Section 16(b) officers) The 2014 Minnesota Census identified women in top executive officer positions who hold the following titles: CEO, president, COO, CFO and CTO. Twenty-five women hold these executive officer positions across Census companies in 2014, one fewer than in 2013.

The ranks of women CEOs dropped by one, to six, in 2014.

Still a Man’s World The number of Minnesota companies that include no women corporate directors or women executive officers (Section 16(b) ) on their corporate leadership teams experienced a net increase from 18 to 20 in 2014. Two companies added one woman director each to depart the “zero-zero list” in 2014: Image Sensing Systems and Northern Technologies International.

All but the CFO position saw declines in 2014. The percentage of women CFOs grew from 13 percent to 15 percent.

Selected Positions

Percentage of Women

Chief Executive Officer

6%

President

5%

Chief Operating Officer

3%

Chief Financial Officer

15%

Company

CEO

Chief Technology Officer

1%

Aetrium

Daniel M. Koch

American Church Mortgage

Philip J. Myers

Black Ridge Oil and Gas

Kenneth DeCubellis

CEO

Broadview Institute

Jeffrey D. Myhre

Sally J. Smith

Dakota Plains Holding

Craig M. McKenzie

Christopher & Banks

LuAnn Via

Electro-Sensors

David L. Klenk

Clearfield

Cheryl P. Beranek

Famous Dave’s of America

Edward H. Rensi, Interim

Electromed

Kathleen Skarvan

Highwater Ethanol

Brian Kletscher

Proto Labs

Victoria M. Holt

Insignia Systems

Glen P. Dall

Select Comfort

Shelly R. Ibach

IntriCon

Mark S. Gorder

Juhl Energy

Daniel J. Juhl (Principal EO)

Kips Bay Medical

Manny Villafana

Lakes Entertainment

Lyle Berman

Mocon

Robert L. Demorest

Norcraft

Mark Buller

Table Trac

Glenn Goulet

Tile Shop Holdings

Robert A. Rucker

Titan Energy Worldwide

Jeffrey W. Flannery

Wireless Ronin Technologies

Scott W. Koller

WSI Industries

Benjamin T. Rashleger

Women CEOs in 2014: Company Buffalo Wild Wings

Percentage of Women Directors 22.9

14.9 12.8

Based on SEC filings as of June 30, 2014.

All 100 Companies

Fortune 500 Companies

Other 85 Companies

Six companies joined this list in 2014: American Church Mortgage, Dakota Plains Holding, Famous Dave’s of America, Highwater Ethanol, Kips Bay Medical and Norcraft.

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

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ADVANCING WOMEN LEADERS

Leading the Way Three companies leverage the gender dividend.

By Suzy Frisch

Though the results reflect a step back, the 2014 Minnesota Census of Women in Corporate Leadership is not all doom and gloom. It named 13 businesses to its Honor Roll for having 20 percent or more women, both as corporate directors and executive officers. Four fared especially well in one category, earning Special Distinction status for having 30 percent or more women serving on boards and in the C-suite.

How did they do it? Three specific businesses have successfully recruited and retained strong contingents of female directors and corporate leaders. These companies are getting it right—building critical masses of women in top positions—with a strong commitment to diverse leadership.

Ecolab

T

Travis Anderson

he census selected Ecolab for its Honor Roll for having three women on its 14-member board and six of 23 top executives.

In 2014, Ecolab added two women to its executive ranks and one to its board, Suzanne Vautrinot, a recently retired U.S. Air Force major general. It was the only census company to do so.

Doug Baker has been CEO of St. Paul-based Ecolab for the past decade. When he took the helm, Ecolab had one female director. He and other directors made it a high priority to develop better gender balance and diversity. “When I took over the company I had been here 25 years, so I certainly had ownership in what occurred before,” Baker says.

“It was a reflection on our company, and we did not like our gender diversity. It would be a weakness if we didn’t address it.”

Though setting a gender diversity goal might seem obvious, it’s a key first step to landing top female talent on boards and in management. Ecolab’s top executives also spread the word among headhunters that the company wanted to find excellent women leaders.

“We said that we’re open to talking with people who have different experiences, as long as they are hugely talented,” Baker notes. “If you’ve proven it’s a priority, people will seek you out if they have an opportunity. It turns into a virtuous cycle.”

Ecolab, with 45,000 employees, took another important step: acknowledging that reaching its goals could take decades if the com-

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pany focused only on entry-level positions. So Baker and others recruited talented mid-level employees with the capacity to step into senior leadership. This approach eventually resulted in Ecolab promoting two women to six of its operating presidency roles, as well as leadership roles in marketing, human resources, and mergers and acquisitions.

In addition, Ecolab puts promising women (and men) in positions where they can develop the Doug Baker necessary skills and be challenged by stretch assignments to prepare them for the upper echelons. Baker also enlists the help of the women’s leadership group at Ecolab, encouraging members to assist with recruiting, mentoring, and developing other women.

These strategies have been effective and will help drive Ecolab’s success, Baker says: “Business is a talent game, and the company that can attract the best talent ups its odds significantly. It’s hard to imagine that you will win the talent game when you exclude half the talent. It’s just not the smart thing.”

NU Telecom

N

U Telecom has a strong record of appointing women directors, dating back to the 1990s when it named Mary Ellen Domeier and Rosemary Dittrich to its seven-seat board. When they stepped down in 2013, the company struggled to find female candidates whose com-

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panies would allow them to serve on a public company board, says president and CEO Bill Otis.

New Ulm-based NU Telecom replaced them with one man and one woman, Suzanne M. Spellacy, vice president and general counsel of Taylor Corp. This year, it added a second female director, Colleen Skillings, CFO and human resources director of Minnesota Valley Testing Laboratories.

In addition, 140-employee NU Telecom enjoys significant representation of women in top leadership roles. Until recently, two (now one) of its three C-suite positions were held by women.

Barb Bornhoft has served as COO since 1998, rising from administrative assistant to assistant general manager, then a top executive during her 23 years at NU Telecom. She also is corporate secretary and vice president. Three of the company’s five top managers and its controller are women.

When seeking outside directors or managers, NU Telecom strives for diversity, Otis says, and gender is one aspect. “I believe that having people coming from different experiences—as well as male and female—gives you a different perspective. The more diversification you have, the better you can hit all the different pieces that might be looked at slightly differently.”

There isn’t a huge pool of female business owners or executives in New Ulm, so the company often casts its net wider. It keeps an ongoing list of potential directors and employees that it vets as needed. It also offers mentoring and tuition reimbursement for all employees to help them develop the right skills to make progress in their careers.

“We typically look for people in leadership roles at companies or organizations, and it’s no big secret that there are fewer females in those roles. But it’s getting easier,” says Otis, who has been CEO for three decades. “There are good, quality candidates whether it’s a board position or in operations or finance, so I’m a bit lost trying to second-guess why other companies don’t have more female leaders.”

Patterson Companies

A

s Patterson Companies expanded its offerings supplying the dental sector into veterinary medicine and rehabilitation, it also honed a mission to increase its ranks of women in leadership. Scott Anderson, who has been CEO for five years and with the company for

22, notices a stark difference when he looks at historical company photos dating back to its start in 1877. Until roughly a decade ago they all show a heavily white, maledominated leadership team.

“We’ve grown as a company in the last 13 years. I knew that one of the key things we had to do well was grow the company in terms of diversity and leadership opportunities, from the highest point in the boardroom Bill Otis down, to reflect the face of our customer,” says Anderson, who also is president and chairman of Patterson, a Mendota Heights company with 7,000 employees.

In 2014, Patterson joined the Honor Roll for naming a woman to one of two new executive officer positions. It also shrunk its board and appointed an additional Scott Anderson female director.

Now three of nine directors are women, as are three of nine top executives.

To bring more women on board, Patterson both developed talent from within—such as new CFO Ann Gugino, who joined the company 15 years ago—and recruited from outside.

“It’s creating an environment where there is a lot of opportunity regardless of gender,” Anderson adds. “It’s also making sure that talented people at the company have a lot of upside opportunity” so that they don’t need to leave to continue their professional trajectory.

For companies looking to bolster their female management ranks, Anderson suggests starting with a commitment to cultivating leaders who reflect the customer base and broader community. “Find talented people and give them the opportunity to grow,” he says. “That requires you to identify some key people who you know can do the job and grow into leadership—who can be great examples for people to want to be like those folks.”

Showing women that they have rich opportunities and won’t be alone at the top are strong incentives to join a company. As Deloitte Consulting notes, “Women may well be the dominant source of economic growth in the near future,” making a strong business case for nurturing female leaders. u

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

12

EMERGING WOMEN LEADERS

To Lead and Influence Four St. Kate’s students pave the way toward corporate leadership.

by Mary Turck

Emily Phuong Le, who is majoring in accounting, describes herself as having a passion for leadership, for helping people connect and succeed, which she sees as the ultimate purpose of a leader.

Like Lindow, Le sees differences in the ways that women and men tend to approach leadership. She says that when a man succeeds in business, “he can say, ‘Oh, it’s because I’m awesome, I’m so smart.’ ” A woman, she says, is less likely to focus on herself, explaining away her success by saying something like, “It’s because I’m lucky, I worked so hard, I nurtured relationships.”

Sasha DeMarre exchanged Melissa Lindow

Melissa Lindow commutes 200 miles to study health care management at St. Catherine’s evening/weekend/online college.

After 14 years of direct service work in health care, she wants to move up. Passionate about providing patient-centered health care in an affordable way, she sees a need for strong leaders to manage changes in the health care system. Lindow is one of many business students at St. Catherine University who believes her talent and skill will take her to a position of leadership in the corporate world.

When Lindow talks about leadership, she emphasizes teamwork. Her leadership style is “all about how can I best serve my organization, how can my skills be used to make the greatest impact in

13

her pre-med major for business after she fainted during a biology lab that showed open-heart surgery. “I couldn’t imagine another 10 years of . . . seeing blood and guts,” she says.

DeMarre, who graduated in December, plans to be a leader in business, but she doesn’t see herself in a Fortune 500 boardroom. “I work for a startup,” she

lives of people.” She thinks that women typically look first at how they can serve rather than at how they can advance their own careers.

Referencing low numbers of women in top corporate positions, Lindow describes the Japanese government’s challenge to achieve a level of 30 percent women on executive boards. The Japanese challenge comes “not necessarily because they thought it was right, but because they needed the people,” she says.

“An aging workforce means that they need more women to be Emily Phuong Le successful.”

APRIL 2015 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

mncensus.stkate.edu

explains. “I was No. 5 or 6, and now there are 50 employees.

[I’m] the salesperson with the most tenure. And I’m 22 years old!” She likes the absence of red tape and bureaucracy, which she sees in larger corporations.

She wants to be a leader in her startup world, and she’s already on the way.

Marissa Glynn has worked full time while going to school, completing hands-on projects such as market research for Mississippi Market and a business plan for a health care project in Uganda. When she thinks about corporate leadership, she focuses on social responsibility. “That puts you down the nonprofit path,” she admits, but she’s looking for a balance between being passionate about a cause and making money.

“I don’t know what I’m willing to compromise right now,” she says, looking toward “being a young adult, being independent, being able to afford a car note.”

“For the next five or 10 years,” she says, “I may have to work a little more mainstream corporate.”

She hopes to work for a company that’s committed to corporate social responsibility.

Women face challenges Tomorrow’s corporate leaders at St. Catherine University agree that women face distinctive challenges. They see women having to fight harder to be taken seriously in business and in public life.

Lindow notes that her industry, health care, is dominated by men. Although 74 percent of middle management positions are held by women, only 4 percent of health care organizations have female CEOs. “There’s a huge disconnect there,” she says,

Her own experience mirrors this reality, as she juggles fulltime work, a 16-credit course load, a family that includes four children and community activities. She describes a busy morning of trying to take a family Christmas card picture, finishing a work email, getting kids on the school bus and rushing out the door for a 200-mile commute to a meeting on campus.

Not all the challenges come from outside. Le says that being assertive can feel scary. “You would come off as unattractive. . . . It’s kind of scary to be successful, especially being more successful than your partner.”

Still, she says she’s inspired by Facebook’s Sheryl Sandberg, and believes that it’s “OK to Sasha DeMarre sit at the table, to make an impact, to be aggressive about what you are “some form of glass ceiling that really passionate about.” restricts women from moving “There’s nothing wrong with from middle management to being assertive,” Glynn insists. upper-level management.”

“I want to get things done.”

That glass ceiling exists partly DeMarre agrees. For her, being because of the way that social assertive means being the boss, relationships are still structured. and that’s a good thing.

Despite the rhetoric of equality, family responsibilities still fall Feminism: more heavily on women.

Not a “scary word” “If I’m sitting next to John any longer Smith,” says Lindow, “his wife Feminism, a “scary word” in elis taking care of the kid who is ementary and high school, now sick or the aging parent. . . . It’s seems normal to the students. the way society is set up. Those “You can’t put it in a box,” says social, gender and family roles Glynn. “If you want to fight really do influence a woman’s for some kind of equality for advancement.” women, you are a feminist.”

Marissa Glynn

Men can be feminists, too.

Le believes that women and minorities face similar issues.

“You need to be it to believe it,” she says. “It’s the matter of who’s going to be the first one.

If you see my boss is a black female, then I would say, ‘Wow, she’s in a position of power and I can be there too.’ If I can see it, I can be it.”

Women need power, they affirm. People of color need power. Everybody should have an equal opportunity to earn and use power. These young women are what feminism looks like.

“Our generation is going to have a really good time bringing up these conversations and stirring the pot,” DeMarre says.

Support at St. Kate’s “Women haven’t been taken seriously in what they say,” Glynn

says. Many people “look at what you’re wearing, are you crossing your legs, who are you dating.”

When women speak up, they are put down. “Instead of a woman being strong, she’s assertive or she’s bossy.”

Glynn and DeMarre agree that their experience at St. Catherine University serves as a counter to the societal barriers that they experience as women.

In the university’s all-women setting, they feel free to be assertive without fear of being called bossy, to stand up and give presentations and to be judged on their ideas, not the way they look.

They talk about wanting to make changes and being proud of being women making changes. They have seen the “boys’ club,” but haven’t yet bumped up against the glass ceiling. When they do, they’ll deal with it. u

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

14

CORPORATE DIRECTORS

(Based on SEC Filings as of June 30, 2014)

Company Name

Names of Women Directors

Titles

3M Co.

Linda G. Alvarado

President and CEO, Alvarado Construction, Inc.

Allete, Inc.

Kathryn W. Dindo

Retired VP and Chief Risk Officer, FirstEnergy Corp.

Allete, Inc.

Heidi E. Jimmerson

Former EVP, Secretary and General Counsel, Florida East Coast Railway, LLC

Allete, Inc.

Madeleine W. Ludlow

Former Principal, Market Capital Partners, LLC

Ameriprise Financial, Inc.

Dianne Neal Blixt

Director, Lorillard, Inc.

Ameriprise Financial, Inc.

Amy DiGeso

Retired EVP, Global HR, The Estee Lauder Cos., Inc.

Ameriprise Financial, Inc.

Siri S. Marshall

Retired SVP, General Counsel, Secretary and Chief Governance and Compliance Officer, General Mills, Inc.

Apogee Enterprises, Inc.

Sara L. Hays

Principal, SLH Advisors

Arctic Cat, Inc.

Susan E. Lester

Private Investor, Former CFO, Homeside Lending, Inc.

Avalon Oil & Gas, Inc.

Jill Allison

Manager, Consulting Practice

Best Buy Co., Inc.

Lisa M. Caputo

EVP and Chief Marketing and Communications Officer, Travelers Cos., Inc.

Best Buy Co., Inc.

Kathy J. Higgins Victor

President and Founder, Centera Corp.

BioAmber, Inc.

Ellen B. Richstone

Former CFO, Rohr Aerospace

Buffalo Wild Wings, Inc.

Sally J. Smith

CEO and President, Buffalo Wild Wings, Inc.

C.H. Robinson Worldwide, Inc.

Mary J. Steele Guilfoile

Chairman, MG Advisors, Inc.

C.H. Robinson Worldwide, Inc.

Jodee A. Kozlak

EVP, Target Corp.

C.H. Robinson Worldwide, Inc.

ReBecca Koenig Roloff

CEO, Minneapolis YWCA

Canterbury Park Holding Corp.

Carin J. Offerman

Private Investor and Principal, Puppy Good Start

Capella Education Co.

Jody G. Miller

CEO, Business Talent Group

Cardiovascular Systems, Inc.

Leslie L. Trigg

Executive in Residence, Warburg Pincus

Christopher & Banks Corp.

Anne L. Jones

CEO, Jones Consulting Group, Inc.

Christopher & Banks Corp.

Patricia A. Stensrud

President, A&H Manufacturing

Christopher & Banks Corp.

LuAnn Via

President and CEO, Christopher & Banks Corp.

Christopher & Banks Corp.

Lisa W. Wardell

EVP and COO, The RLJ Cos.

Clearfield, Inc.

Cheryl P. Beranek

President and CEO, Clearfield, Inc.

Communications Systems, Inc.

Luella G. Goldberg

Member, Board of Overseers, University of Minnesota, Carlson School of Management

CyberOptics Corp.

Irene M. Qualters

Division Director, Office for Advanced Cyberinfrastructure, National Science Foundation

Datalink Corp.

Margaret A. Loftus

Independent Consultant

Deluxe Corp.

Cheryl E. Mayberry McKissack

COO, Johnson Publishing Co., and President, JPC Digital

Deluxe Corp.

Mary Ann O’Dwyer

SVP, Wheels, Inc.

Digital River, Inc.

Cheryl F. Rosner

Founder and CEO, Stayful, Inc.

Donaldson Co., Inc.

Janet M. Dolan

President, Act 3 Enterprises

Ecolab, Inc.

Barbara J. Beck

CEO, Learning Care Group, Inc.

Ecolab, Inc.

Victoria J. Reich

Former SVP and CFO United Stationers, Inc.

Ecolab, Inc.

Suzanne M. Vautrinot

Retired Major General, U.S. Air Force

Electromed, Inc.

Kathleen S. Skarvan

CEO, Electromed, Inc.

Enventis Corp.

Myrita P. Craig

Vice Chair, Enventis Corp. and COO, YMCA, Greater Cincinnati

Enventis Corp.

Diane L. Dewbrey

Board Chair, Enventis Corp. and CEO and Director, Foundation Bank

Fastenal Co.

Rita J. Heise

Retired Corporate VP and CIO, Cargill, Inc.

Fastenal Co.

Reyne K. Wisecup

EVP, HR, Fastenal Co.

G&K Services, Inc.

Lynn Crump-Caine

Founder and CEO, Outsidein Consulting

G&K Services, Inc.

Alice M. Richter

Retired CPA, KPMG LLP

General Mills, Inc.

Henrietta Holsman Fore

Chairman of the Board and CEO, Holsman International

General Mills, Inc.

Judith Richards Hope

Retired Distinguished Visitor from Practice and Professor of Law, Georgetown University

General Mills, Inc.

Heidi G. Miller

Retired President, JPMorgan International, JPMorgan Chase & Co.

General Mills, Inc.

Hilda Ochoa-Brillembourg

Founder, CEO and Chairman of the Board, Strategic Investment Group

General Mills, Inc.

Dorothy A. Terrell

Managing Partner, FirstCap Advisors

Graco, Inc.

Martha A. Morfitt

President and CEO, River Rock Partners, Inc.

H.B. Fuller Co.

Maria Teresa Hilado

SVP, Finance and Treasurer, PepsiCo, Inc.

H.B. Fuller Co.

Ann W. H. Simonds

SVP and President, Baking Products, General Mills, Inc.

Hawkins, Inc.

Mary J. Schumacher

COO, Twin Cities Habitat for Humanity

HMN Financial, Inc.

Karen L. Himle

EVP, DHR International and Adjunct Professor, University of St. Thomas School of Law

HMN Financial, Inc.

Dr. Wendy Shannon

Assistant Professor, Winona State University

Hormel Foods Corp.

Jody H. Feragen

EVP and CFO, Hormel Foods Corp.

Hormel Foods Corp.

Elsa A. Murano, Ph.D.

Professor, Nutrition & Food Science and President Emerita, Texas A&M University

Hormel Foods Corp.

Susan K. Nestegard

Former President, Global Healthcare Sector, Ecolab, Inc.

Hutchinson Technology, Inc.

Martha Goldberg Aronson

EVP and President, Global Healthcare, Ecolab, Inc.

Ikonics Corp.

Rondi C. Erickson

Retired Founder and Co-owner, Nokomis Restaurant & Bar

Image Sensing Systems, Inc.

Melissa Fisher

VP, Corporate Development, Treasury and Investor Relations, Digital River, Inc.

Imation Corp.

Trudy A. Rautio

President and CEO, Carlson Cos., Inc.

Life Time Fitness, Inc.

Martha A. Morfitt

President and CEO, River Rock Partners, Inc.

Medtronic, Inc.

Shirley Ann Jackson, Ph.D.

President, Rensselaer Polytechnic Institute

Medtronic, Inc.

Denise M. O’Leary

Private Venture Capital Investor

Medtronic, Inc.

Preetha Reddy

Managing Director, Apollo Hospitals Enterprise Ltd.

MGC Diagnostics Corp.

Wendy D. Lynch, Ph.D.

Co-Director, Center for Consumer Choice in Health Care, Altarum Institute and Adjunct Associate Professor, School of Nursing, Indiana University/Purdue University

15

APRIL 2015 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

mncensus.stkate.edu

Company Name

Names of Women Directors

Titles

Mosaic Co.

Nancy E. Cooper

Retired EVP and CFO, CA, Inc.

Mosaic Co.

Denise C. Johnson

VP and Officer, Integrated Manufacturing Operation Division, Caterpillar, Inc.

MTS Systems Corp.

Emily M. Liggett

President and CEO, NovaTorque, Inc.

MTS Systems Corp.

Barb J. Samardzich

COO, Ford of Europe, Ford Motor Co.

MTS Systems Corp.

Gail P. Steinel

Owner, Executive Advisors

NU Telecom, Inc.

Colleen R. Skillings

CFO and HR Director, Minnesota Valley Testing Laboratories, Inc.

NU Telecom, Inc.

Suzanne M. Spellacy

VP and General Counsel, Taylor Corp.

Northern Oil and Gas, Inc.

Lisa Bromiley

Executive Consultant, SolomonEdwardsGroup, LLC

Northern Technologies International Corp.

Barbara D. Colwell

Board Member, Publishers Clearing House, LLC

NVE Corp.

Patricia M. Hollister

Director, Finance, TEL FSI, Inc.

OneBeacon Insurance Group Ltd.

Lois W. Grady

Independent Consultant, Retired EVP and Director, Information Systems and Services, Hartford Life Inc.

Otter Tail Corp.

Karen M. Bohn

President, Galeo Group, LLC

Otter Tail Corp.

Kathryn O. Johnson

Owner/Principal, Johnson Environmental Concepts

Otter Tail Corp.

Joyce Nelson Schuette

Retired Managing Director and Investment Banker, Piper Jaffray & Co.

Patterson Cos., Inc.

Jody H. Feragen

EVP and CFO, Hormel Foods Corp.

Patterson Cos., Inc.

Sarena S. Lin

Corporate VP, Strategy and Business Development Cargill, Inc.

Patterson Cos., Inc.

Ellen A. Rudnick

Executive Director and Clinical Professor, University of Chicago Booth School of Business

Piper Jaffray Cos.

B. Kristine Johnson

President, Affinity Capital Management.

Piper Jaffray Cos.

Lisa K. Polsky

EVP, Chief Risk Officer, CIT Group, Inc.

Polaris Industries, Inc.

Annette K. Clayton

Chief Supply Chain Officer, Schneider Electric

Proto Labs, Inc.

Victoria M. Holt

President and CEO, Proto Labs, Inc.

Qumu Corp.

Kimberly K. Nelson

EVP and CFO, SPS Commerce, Inc.

Select Comfort Corp.

Shelly R. Ibach

President and CEO, Select Comfort Corp.

Select Comfort Corp.

Brenda J. Lauderback

Former President, Retail and Wholesale Group, Nine West Group, Inc.

Select Comfort Corp.

Kathleen L. Nedorostek

Group President, Global Footwear and Accessories, Jones Group, Inc.

Silver Bay Realty Trust Corp.

Tanuja M. Dehne

SVP and Chief of Staff, NRG Energy, Inc.

St. Jude Medical, Inc.

Barbara B. Hill

Operating Partner, Moelis Capital Partners

St. Jude Medical, Inc.

Wendy L. Yarno

Independent Consultant, Life Sciences Industry

SurModics, Inc.

Susan E. Knight

SVP and CFO, MTS Systems Corp.

Target Corp.

Roxanne S. Austin

President, Austin Investment Advisors and Interim Chair of the Board, Target Corp.

Target Corp.

Mary E. Minnick

Partner, Lion Capital

Target Corp.

Anne M. Mulcahy

Chairman, Board of Trustees, Save The Children Federation, Inc.

TCF Financial Corp.

Karen L. Grandstrand

Chair, Finance Group, Fredrikson & Byron, P.A.

Techne Corp.

Karen A. Holbrook, Ph.D.

Senior Advisor to the President, University of South Florida

Tennant Co.

Azita Arvani

Head, Partnering and Alliances, Nokia Solutions and Networks

Tennant Co.

Carol S. Eicher

President and CEO, Sleep Innovations/Advanced Comfort Products

Toro Co.

Janet K. Cooper

Retired SVP and Treasurer, Qwest Communications International, Inc.

Toro Co.

Katherine J. Harless

Retired President and CEO, Idearc, Inc.

U.S. Bancorp

Victoria Buyniski Gluckman

Retired Chairman and CEO, United Medical Resources, Inc.

U.S. Bancorp

Olivia F. Kirtley

Business Consultant

U.S. Bancorp

Doreen Woo Ho

Commissioner, San Francisco Port Commission

UnitedHealth Group, Inc.

Michele J. Hooper

President and CEO, The Directors’ Council

UnitedHealth Group, Inc.

Gail R. Wilensky, Ph.D.

Senior Fellow, Project HOPE

Uroplasty, Inc.

Lee A. Jones

President and CEO, Rebiotix, Inc.

Valspar Corp.

Janel S. Haugarth

EVP and President, Independent Business and Business Supply Chain Services, Supervalu, Inc.

Valspar Corp.

Mae C. Jemison, M.D.

President, The Jemison Group, Inc.

Winmark Corp.

Jenele C. Grassle

VP of Merchandising, Bluestem Brands, Inc.

Xcel Energy, Inc.

Gail Koziara Boudreaux

CEO, UnitedHealthcare and EVP, UnitedHealth Group

Xcel Energy, Inc.

A. Patricia Sampson

CEO, President and Owner, The Sampson Group, Inc.

Xcel Energy, Inc.

Kim Williams

Retired Partner, Wellington Management Co. LLP

XRS Corp.

Karen T. Van Lith

Consultant and Former CEO, Make Music, Inc.

The following 32 companies have only men on their boards: • Aetrium, Inc • American Church Mortgage Co. • ANI Pharmaceuticals, Inc. • Appliance Recycling Centers of America • Black Ridge Oil & Gas, Inc. • Broadview Institute, Inc. • Dakota Plains Holdings, Inc. • Digi International, Inc. • Electro-Sensors, Inc. • Famous Dave's of America, Inc. • Granite Falls Energy LLC • Highwater Ethanol LLC • Insignia Systems, Inc. • International Barrier Technology, Inc. • IntriCon Corp. • Juhl Energy, Inc. • Kips Bay Medical, Inc. • Lakes Entertainment, Inc. • Mocon, Inc. • Norcraft Cos., Inc. • Nortech Systems, Inc. • Regis Corp. • SPS Commerce, Inc. • Supervalu, Inc. • Table Trac, Inc. • Tile Shop Holdings, Inc. • Titan Energy Worldwide, Inc. • Urologix, Inc. • ValueVision Media, Inc. • Vascular Solutions, Inc. • Wireless Ronin Technologies, Inc. • WSI Industries, Inc.

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

16

EXECUTIVE OFFICERS (Based on SEC Filings as of June 30, 2014)

Company

Names of Women Exec. Officers

Titles

3M Co.

Julie Bushman

SVP, Business Transformation and Information Technology

3M Co.

Marlene M. McGrath

SVP, HR

Allete, Inc.

Deborah A. Amberg

SVP, General Counsel and Secretary

Ameriprise Financial, Inc.

Kelli A. Hunter

EVP, HR

Ameriprise Financial, Inc.

Deirdre Davey McGraw

EVP, Marketing, Communications and Community Relations

ANI Pharmaceuticals, Inc.

Charlotte C. Arnold

VP and CFO

Apogee Enterprises, Inc.

Patricia A. Beithon

General Counsel and Secretary

Appliance Recycling Centers of America

Rachel L. Holmes

VP, Business Development and Chief of Staff

Best Buy Co., Inc.

Shari L. Ballard

President, International and Chief HR Officer

Best Buy Co., Inc.

Sharon L. McCollam

CAO and CFO

BioAmber, Inc.

Babette Pettersen

Chief Commercial Officer

Buffalo Wild Wings, Inc.

Kathleen M. Benning

EVP, Chief Strategy Officer and Business Development

Buffalo Wild Wings, Inc.

Emily Decker

SVP, General Counsel, Secretary

Buffalo Wild Wings, Inc.

Judith A. Shoulak

EVP, President, North America Buffalo Wild Wings

Buffalo Wild Wings, Inc.

Sally J. Smith

CEO, President and Director

Buffalo Wild Wings, Inc.

Mary J. Twinem

EVP, CFO and Treasurer

C.H. Robinson Worldwide, Inc.

Angela K. Freeman

VP, HR

Christopher & Banks Corp.

Monica L. Dahl

SVP, Marketing

Christopher & Banks Corp.

Belinda D. Meier

VP and Controller

Christopher & Banks Corp.

Michelle L. Rice

SVP, Store Operations

Christopher & Banks Corp.

Cindy J. Stemper

SVP, HR

Christopher & Banks Corp.

LuAnn Via

President and CEO

Clearfield, Inc.

Cheryl P. Beranek

President and CEO

Communications Systems, Inc.

Kristin A. Hlavka

Corporate Controller

Datalink Corp.

Denise M. Westenfield

VP, Controller, Chief Accounting Officer and Assistant Secretary

Deluxe Corp.

Amanda Brinkman

VP, Chief Brand and Communications Officer

Deluxe Corp.

Tracey Engelhardt

VP, Direct-to-Consumer

Deluxe Corp.

Julie Loosbrock

SVP, HR

Digi International, Inc.

Tracy L. Roberts

VP, HR and Information Technology

Donaldson Co., Inc.

Sandra N. Joppa

VP, HR

Donaldson Co., Inc.

Mary Lynne Perushek

VP and CIO

Ecolab, Inc.

Martha G. Aronson

EVP and President, Global Healthcare

Ecolab, Inc.

Laurie M. Marsh

EVP, HR

Ecolab, Inc.

Jill S. Wyant

EVP and President, Global Food & Beverage

Electromed, Inc.

Kathleen S. Skarvan

CEO

Enventis Corp.

Mary T. Jacobs

VP, HR

Enventis Corp.

Carol Wirsbinski

VP and COO

Fastenal Co.

Sheryl A. Lisowski

Controller and Chief Accounting Officer

Fastenal Co.

Reyne K. Wisecup

EVP, HR and Director

G&K Services, Inc.

Tracy C. Jokinen

CFO

General Mills, Inc.

Kimberly A. Nelson

SVP, External Relations and President, General Mills Foundation

Graco, Inc.

Caroline M. Chambers

VP, Corporate Controller and Information Systems

Graco, Inc.

Karen Park Gallivan

VP, General Counsel and Secretary

Granite Falls Energy LLC

Stacie Schuler

CFO and Controller

H.B. Fuller Co.

Elin Gabriel

VP, Global Operations

H.B. Fuller Co.

Traci L. Jensen

SVP, Americas Adhesives

H.B. Fuller Co.

Ann B. Parriott

VP, HR

Hawkins, Inc.

Theresa R. Moran

VP, Quality and Support

Hawkins, Inc.

Kathleen P. Pepski

VP, CFO, and Treasurer

HMN Financial, Inc.

Susan K. Kolling

SVP, HMN Financial, Inc. and Home Federal Savings Bank

Hormel Foods Corp.

Deanna T. Brady

Group VP, Foodservice

Hormel Foods Corp.

Jody H. Feragen

EVP and CFO

Hormel Foods Corp.

Lori J. Marco

VP, External Affairs and General Counsel

Hutchinson Technology, Inc.

Connie L. Pautz

VP, HR and Corporate Communications

International Barrier Technology, Inc.

Melissa McElwee

CFO

International Barrier Technology, Inc.

Lindsay B. Nauen

Corporate Secretary

Life Time Fitness, Inc.

Tami A. Kozikowski

EVP, Real Estate and Development

Medtronic, Inc.

Carol A. Surface

SVP and Chief HR Officer

Mosaic Co.

Corrine D. Ricard

SVP, HR

MTS Systems Corp.

Susan E. Knight

SVP and CFO

MTS Systems Corp.

Kristin Trecker

SVP and Chief HR Officer

NU Telecom, Inc.

Barbara A.J. Bornhoft

VP, COO and Corporate Secretary

Nortech Systems, Inc.

Paula Graff

VP and CFO

Nortech Systems, Inc.

Jill D. Hesselroth

VP, Global Supply Chain Management and Electronic and Medical Products

OneBeacon Insurance Group Ltd.

Maureen A. Phillips

SVP and General Counsel

Patterson Cos., Inc.

Jonelle R. Burnham

VP, General Counsel and Secretary

17

APRIL 2015 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

mncensus.stkate.edu

Company

Names of Women Exec. Officers

Titles

Patterson Cos., Inc.

Ann B. Gugino

VP, Strategy and Planning

Patterson Cos., Inc.

Ranell Hamm

CIO

Piper Jaffray Cos.

Debbra L. Schoneman

CFO

Polaris Industries, Inc.

Stacy L. Bogart

VP, General Counsel, Compliance Officer and Secretary

Proto Labs, Inc.

Victoria M. Holt

President, CEO and Director

Proto Labs, Inc.

Jacqueline D. Schneider

VP, Sales and Customer Service

Regis Corp.

Heather L. Passe

SVP and Chief Marketing Officer

Select Comfort Corp.

Andrea Bloomquist

SVP and Chief Product Officer

Select Comfort Corp.

Patricia Dirks

SVP and Chief Human Capital Officer

Select Comfort Corp.

Shelly R. Ibach

President and CEO

Select Comfort Corp.

Kathryn V. Roedel

EVP, Chief Services and Fulfillment Officer

Silver Bay Realty Trust Corp.

Christine Battist

CFO and Treasurer

SPS Commerce, Inc.

Kimberly K. Nelson

EVP and CFO

St. Jude Medical, Inc.

Lisa M. Andrade

VP, Chief Marketing Officer

St. Jude Medical, Inc.

Angela D. Craig

VP, Global HR

St. Jude Medical, Inc.

Rachel H. Ellingson

VP, Corporate Relations

Supervalu, Inc.

Susan S. Grafton

SVP, Finance and Chief Accounting Officer

Supervalu, Inc.

Janel S. Haugarth

EVP and President, Independent Business and Supply Chain Services

Supervalu, Inc.

Michele Murphy

EVP, HR and Communications

Supervalu, Inc.

Karla C. Robertson

EVP, General Counsel and Corporate Secretary

Target Corp.

Jodeen A. Kozlak

EVP and Chief HR Officer

Target Corp.

Tina M. Schiel

EVP and Chief Stores Officer

Target Corp.

Kathryn A. Tesija

EVP, Chief Merchandising and Supply Chain Officer

Target Corp.

Laysha L. Ward

President, Community Relations and Target Foundation

TCF Financial Corp.

Susan D. Bode

SVP and Chief Accounting Officer, TCF Financial Corp., EVP and Chief Accounting Officer, TCF Bank

TCF Financial Corp.

Barbara E. Shaw

SVP, Director, Corporate HR, TCF Financial Corp. and EVP, Corporate HR, TCF Bank

Tennant Co.

Heidi M. Wilson

SVP, General Counsel and Secretary

Toro Co.

Judy L. Altmaier

VP, Exmark

Toro Co.

Renee J. Peterson

VP, Treasurer and CFO

U.S. Bancorp

Jennie P. Carlson

EVP, HR

U.S. Bancorp

Pamela A. Joseph

Vice Chairman, Payment Services

UnitedHealth Group, Inc.

Gail K. Boudreaux

EVP, UnitedHealth Group and CEO, UnitedHealthcare

UnitedHealth Group, Inc.

Marianne D. Short

EVP and Chief Legal Officer

Urologix, Inc.

Lisa Ackermann

EVP, Sales and Marketing

Valspar Corp.

Cynthia A. Arnold

SVP and Chief Technology Officer

Value Vision Media, Inc.

Teresa Dery

SVP, General Counsel and Corporate Secretary

Value Vision Media, Inc.

Nancy Kunkle

SVP, On-Air Execution and Customer Experience

Value Vision Media, Inc.

Beth McCartan

VP, Financial Planning and Analysis

Value Vision Media, Inc.

Annette Repasch

Chief Merchandising Officer

Value Vision Media, Inc.

Carol Steinberg

COO

Vascular Solutions, Inc.

Susan Christian

VP, Sales Operations

Vascular Solutions, Inc.

Carrie Powers

VP, Marketing

Vascular Solutions, Inc.

Charmaine Sutton

SVP, Operations

Winmark Corp.

Leah A. Goff

VP, HR

Xcel Energy, Inc.

Teresa S. Madden

SVP and CFO

Xcel Energy, Inc.

Judy M. Poferl

VP, Corporate Secretary

The following 40 companies have only men as executive officers (Section 16(b)): • Aetrium, Inc. • American Church Mortgage Co. • Arctic Cat, Inc. • Avalon Oil & Gas, Inc. • Black Ridge Oil & Gas, Inc. • Broadview Institute, Inc. • Canterbury Park Holding Corp. • Capella Education Co. • Cardiovascular Systems, Inc. • CyberOptics Corp. • Dakota Plains Holdings, Inc. • Digital River, Inc. • Electro-Sensors, Inc. • Famous Dave's of America, Inc. • Highwater Ethanol LLC • Ikonics Corp. • Image Sensing Systems, Inc. • Imation Corp.

• Insignia Systems, Inc • IntriCon Corp. • Juhl Energy, Inc • Kips Bay Medical, Inc. • Lakes Entertainment, Inc. • MGC Diagnostics Corp. • Mocon, Inc. • Norcraft Cos., Inc. • Northern Oil and Gas, Inc. • Northern Technologies • NVE Corp. • Otter Tail Corp. • Qumu Corp. • SurModics, Inc. • Table Trac, Inc. • Techne Corp.

• Tile Shop Holdings, Inc. • Titan Energy Worldwide, Inc. • Uroplasty, Inc. • Wireless Ronin Technologies, Inc. • WSI Industries, Inc. • XRS Corp.

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

18

CORPORATE DIRECTORS AND EXECUTIVE OFFICERS

(Ranked in order of 2013 net revenue as reported in the Star Tribune 100: 19th Annual Report published April 2014.Data based on SEC Filings as of June 30, 2014. )

Corporate Directors 2014 Rank

19

Company Name

Total Directors

Women Directors

Executive Officers

% Net Change Women from 2013 Directors

Total Officers

Women Officers

% Women Net Change Exec. from 2013 Officers

1

UnitedHealth Group, Inc.

11

2

18.2%

0

6

2

33.3%

0

2

Target Corp.

10

3

30.0%

-1

8

4

50.0%

-4

3

Best Buy Co., Inc.

11

2

18.2%

2

5

2

40.0%

-2

4

3M Co.

9

1

11.1%

-2

17

2

11.8%

3

5

U.S. Bancorp

14

3

21.4%

0

13

2

15.4%

-2

6

General Mills, Inc.

14

5

35.7%

1

12

1

8.3%

0

7

Supervalu, Inc.

11

0

0.0%

1

10

4

40.0%

-2

8

Medtronic, Inc.

10

3

30.0%

-1

10

1

10.0%

1

9

Ecolab, Inc.

14

3

21.4%

1

15

3

20.0%

2

10

C.H. Robinson Worldwide, Inc.

10

3

30.0%

0

11

1

9.1%

0

11

Ameriprise Financial, Inc.

10

3

30.0%

1

13

2

15.4%

0

12

Xcel Energy, Inc.

11

3

27.3%

-1

14

2

14.3%

-1

13

Mosaic Co.

12

2

16.7%

0

10

1

10.0%

1

14

Hormel Foods Corp.

11

3

27.3%

-1

17

3

17.6%

1

15

St. Jude Medical, Inc.

8

2

25.0%

1

16

3

18.8%

2

16

Valspar Corp.

10

2

20.0%

0

5

1

20.0%

0

17

Patterson Cos., Inc.

10

3

30.0%

-1

10

3

30.0%

2

18

Polaris Industries, Inc.

9

1

11.1%

1

12

1

8.3%

-1

19

Fastenal Co.

20

Donaldson Co., Inc.

21 22

9

2

22.2%

-2

11

2

18.2%

0

12

1

8.3%

2

10

2

20.0%

-1

H.B. Fuller Co.

9

2

22.2%

1

9

3

33.3%

0

Toro Co.

9

2

22.2%

0

14

2

14.3%

1

23

Regis Corp.

8

0

0.0%

0

6

1

16.7%

0

24

Deluxe Corp.

10

2

20.0%

1

11

3

27.3%

1

25

TCF Financial Corp.

14

1

7.1%

-1

13

2

15.4%

3

26

Buffalo Wild Wings, Inc.

7

1

14.3%

0

8

5

62.5%

0

27

OneBeacon Insurance Group Ltd.

11

1

9.1%

1

7

1

14.3%

0

28

Life Time Fitness, Inc.

8

1

12.5%

0

5

1

20.0%

0

29

Graco, Inc.

9

1

11.1%

0

15

2

13.3%

0

30

Allete, Inc.

10

3

30.0%

-1

7

1

14.3%

0

31

Select Comfort Corp.

9

3

33.3%

0

8

4

50.0%

1

32

Otter Tail Corp.

9

3

33.3%

1

4

0

0.0%

-1

33

G&K Services, Inc.

8

2

25.0%

-1

6

1

16.7%

1

34

Imation Corp.

6

1

16.7%

-1

6

0

0.0%

0

35

Tennant Co.

10

2

20.0%

0

8

1

12.5%

0

36

Apogee Enterprises, Inc.

9

1

11.1%

-1

5

1

20.0%

0

37

Arctic Cat, Inc.

7

1

14.3%

-1

7

0

0.0%

1

38

Value Vision Media, Inc.

8

0

0.0%

1

12

5

41.7%

0

39

Datalink Corp.

7

1

14.3%

0

4

1

25.0%

0

40

MTS Systems Corp.

10

3

30.0%

0

7

2

28.6%

1

41

Piper Jaffray Cos.

8

2

25.0%

0

9

1

11.1%

0

42

Christopher & Banks Corp.

8

4

50.0%

0

7

5

71.4%

1

43

Capella Education Co.

8

1

12.5%

-2

4

0

0.0%

-1

44

Hawkins, Inc.

8

1

12.5%

0

7

2

28.6%

1

45

Digital River, Inc.

9

1

11.1%

2

5

0

0.0%

2

46

Norcraft Cos., Inc.

5

0

0.0%

NA

5

0

0.0%

NA

47

Northern Oil and Gas, Inc.

48

Techne Corp.

49

6

1

16.7%

-1

4

0

0.0%

0

10

1

10.0%

1

5

0

0.0%

2

Hutchinson Technology, Inc.

7

1

14.3%

0

5

1

20.0%

0

50

Granite Falls Energy LLC

9

0

0.0%

NA

2

1

50.0%

NA

51

Tile Shop Holdings, Inc.

6

0

0.0%

0

6

0

0.0%

1

52

Digi International, Inc.

7

0

0.0%

0

8

1

12.5%

0

53

Enventis Corp.

8

2

25.0%

0

5

2

40.0%

0

54

Highwater Ethanol LLC

9

0

0.0%

NA

2

0

0.0%

NA

55

Proto Labs, Inc.

8

1

12.5%

-1

6

2

33.3%

-3

56

Famous Dave's of America, Inc.

5

0

0.0%

-1

3

0

0.0%

0

57

Communications Systems, Inc.

6

1

16.7%

-2

7

1

14.3%

0

58

Appliance Recycling Centers of America

5

0

0.0%

0

6

1

16.7%

1

59

Cardiovascular Systems, Inc.

8

1

12.5%

0

6

0

0.0%

0

60

Nortech Systems, Inc.

7

0

0.0%

2

5

2

40.0%

0

61

Vascular Solutions, Inc.

7

0

0.0%

0

10

3

30.0%

1

62

SPS Commerce, Inc.

7

0

0.0%

0

3

1

33.3%

0

APRIL 2015 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

mncensus.stkate.edu

Corporate Directors 2014 Rank

Company Name

Total Directors

Women Directors

Executive Officers

% Net Change Women from 2013 Directors

Total Officers

Women Officers

% Women Net Change Exec. from 2013 Officers

63

Qumu Corp.

9

1

11.1%

1

3

0

0.0%

64

Clearfield, Inc.

6

1

16.7%

0

3

1

33.3%

1 0

65

Mocon, Inc.

8

0

0.0%

0

4

0

0.0%

-2

66

SurModics, Inc.

9

1

11.1%

0

6

0

0.0%

0

67

Winmark Corp.

7

1

14.3%

-1

6

1

16.7%

0

68

XRS Corp.

7

1

14.3%

0

4

0

0.0%

-2

69

IntriCon Corp.

5

0

0.0%

0

5

0

0.0%

-1

70

Silver Bay Realty Trust Corp.

9

1

11.1%

NA

4

1

25.0%

NA

71

Canterbury Park Holding Corp.

6

1

16.7%

-1

5

0

0.0%

1

72

Lakes Entertainment, Inc.

5

0

0.0%

0

2

0

0.0%

0

73

New Ulm Telecom, Inc.

7

2

28.6%

0

3

1

33.3%

0

74

WSI Industries, Inc.

5

0

0.0%

0

2

0

0.0%

0

75

CyberOptics Corp.

5

1

20.0%

-1

3

0

0.0%

0

76

MGC Diagnostics Corp.

5

1

20.0%

-1

3

0

0.0%

1

77

HMN Financial, Inc.

9

2

22.2%

0

4

1

25.0%

-1

78

ANI Pharmaceuticals, Inc.

7

0

0.0%

NA

5

1

20.0%

NA

79

Insignia Systems, Inc.

6

0

0.0%

0

2

0

0.0%

-1

80

NVE Corp.

5

1

20.0%

0

2

0

0.0%

0

81

Image Sensing Systems, Inc.

6

1

16.7%

1

2

0

0.0%

0

82

Uroplasty, Inc.

7

1

14.3%

1

6

0

0.0%

1

83

Northern Technologies International Corp.

7

1

14.3%

0

2

0

0.0%

0

84

Titan Energy Worldwide, Inc.

2

0

0.0%

0

1

0

0.0%

-1

85

Ikonics Corp.

8

1

12.5%

-1

6

0

0.0%

0

86

Urologix, Inc.

5

0

0.0%

0

3

1

33.3%

0

87

Juhl Energy, Inc.

6

0

0.0%

1

3

0

0.0%

0

88

Electromed, Inc.

5

1

20.0%

-1

2

1

50.0%

0

89

Broadview Institute, Inc.

4

0

0.0%

0

2

0

0.0%

0

90

Black Ridge Oil & Gas, Inc.

3

0

0.0%

0

3

0

0.0%

1

91

International Barrier Technology, Inc.

3

0

0.0%

NA

3

2

66.7%

NA

92

Wireless Ronin Technologies, Inc.

4

0

0.0%

-1

2

0

0.0%

0

93

Electro-Sensors, Inc.

5

0

0.0%

0

1

0

0.0%

0

94

Table Trac, Inc.

5

0

0.0%

0

4

0

0.0%

0

95

American Church Mortgage Co.

4

0

0.0%

NA

2

0

0.0%

NA

96

BioAmber, Inc.

8

1

12.5%

NA

6

1

16.7%

NA

97

Aetrium, Inc.

6

0

0.0%

0

2

0

0.0%

-4

98

Dakota Plains Holdings, Inc.

6

0

0.0%

NA

3

0

0.0%

NA

99

Avalon Oil & Gas, Inc.

4

1

25.0%

NA

1

0

0.0%

NA

100

Kips Bay Medical, Inc.

4

0

0.0%

NA

3

0

0.0%

NA

Methodology The 2014 Minnesota Census of Women in Corporate Leadership examines the percentage of women in leadership roles at the 100 largest publicly held companies headquartered in Minnesota as ranked by 2013 net revenue in the Minneapolis-based Star Tribune 100: 19th Annual Report (April 2014) and the Minneapolis/St. Paul Business Journal top 100 list (April 2014).

Excluded from the list are closely held companies, cooperatives and

fraternal benefit organizations, and over-the-counter stocks. Of Minnesota’s Fortune 500 companies, three are not represented in the Minnesota Census data sample: Land O’Lakes, CHS and Thrivent Financial for Lutherans. Although the Securities and Exchange Commission (SEC) lists these as public companies with more than 500 shareholders, they are not publicly traded on a stock exchange.

Data for the 2014 Minnesota Census were collected from com-

Joann Bangs, Ph.D.

Rebecca Hawthorne, Ph.D.

Dean and associate professor of economics, School of Business and Professional Studies (SBPS), St. Catherine University

Associate professor and program director, Master of Arts in Organizational Leadership, St. Catherine University

pany filings with the SEC, including proxy statements (DEF 14A), annual reports (Form 10-K) and current reports (Form 8-K). The most recent SEC filings through June 30, 2014, were reviewed for data collection. Data confirmation sheets were emailed or mailed to each company, requesting verification of the information and notification of any changes occurring before the census cutoff of June 30, 2014.

The response rate was 38 percent.

Changes that occurred in board membership, executive officer appointments, company ownership or bankruptcy filings after the period covered by the June 30, 2014, filings are not reflected in this analysis.

Criteria for inclusion in the “executive officer” category vary by company. To be consistent, the census uses only those individuals formally designated as Section 16(b) executive officers in SEC filings. u

St. Catherine University acknowledgements:

Jessica Solberg and Tasha Rose Terry, research assistants Julie Michener, strategic communications manager Kristin Cummings, director of marketing and communications Valerie Krech, MAOL program coordinator Laura McGlauchlen, administrative assistant, SBPS

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

20

LEADING WOMEN

Leading Ladies

Minnesota small business leaders offer proof that women belong in the boardroom.

by Mary Turck

D

iversity in the boardroom is trending in the court of public opinion and shareholder voting. In a recent PricewaterhouseCoopers survey of corporate directors, 57 percent report that their boards are considering or discussing recruiting more diverse directors. A key obstacle business leaders identify is awareness of qualified candidates—where do they find candidates with industry experience and expertise in finance, operations and risk management?

In Minnesota, companies would do well to look no further than their own backyards, particularly for women who are already running their own businesses. They have savvy and experience, as well as a different perspective that may prove particularly valuable.

Chris Farris

Chris Farris launched Eldernest in 2014, offering home management services to seniors. More than half the businesses in the health care and social assistance sector are women-owned, the highest percentage of women-owned businesses in any sector, according to the Small Business Administration. Farris has decades of experience in the health care field as an administrator, nurse and teacher. She sees a market niche for home assistance, which she describes as “doing the chores that the son or daughter would do: groceries, meals, making appointments, bill paying.” In business terms, that translates to the work of a personal assistant, in contrast to the more medical role played by personal care attendants.

Farris said she has been preparing to run her own business throughout her life. Growing up with four brothers, she learned to be assertive and was a tomboy who could “throw like a boy and was never the last pick on the team.” She worked her way through the College of St. Catherine (now St. Catherine University), and served in the Navy as an officer. Other leadership positions followed: director of critical care nursing in a San Diego-area hospital, assistant professor of nursing and then assistant director of nursing at the University of Florida. Eventually, family ties brought her back to Minnesota and to jobs at Dakota County Technical College and Fairview Hospitals. “All of those experiences,” Farris says, “helped prepare me to run my business.”

Like the majority of women-owned businesses, Eldernest is small.

The SBA reports that 88 percent of the nation’s 7.8 million womenowned businesses are small. About 75 percent of all U.S. businesses have annual revenue below $100,000, while only 9 percent of companies and 4 percent of women-owned enterprises have revenue of more than $500,000.

While they may start small, these companies are launched and growing in large numbers. Women created businesses at almost double the rate of men from 1997 to 2007, says the SBA.

Information Resources u Bain & Company (2014), “Everyday Moments of Truth: Frontline Managers are Key to Women’s Career Aspirations”: www.bain.com u Catalyst (2011), “The Bottom Line: Corporate Performance and Women’s Representation on Boards”: www.catalyst.org

21

u Catalyst (2013), “Why Diversity Matters”: www.catalyst.org u Deloitte Global Center for Corporate Governance (2013), “The Gender Dividend: Making the Business Case for Investing in Women”: www.global. corpgov.deloitte.com

APRIL 2015 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

u Dezso, C.L. and Ross, D.G. (2012), “Does Female Representation in Top Management Improve Firm Performance?

A Panel Data Investigation,” Strategic Management Journal, vol. 33, no.9 u Galbreath, J. (2011), “Are There Gender-Related Influences on Corporate

mncensus.stkate.edu

Sustainability? A Study of Women on Boards of Directors,” Journal of Management & Organization, vol. 17, no 1: pp.

17-38 u ION (2014), “Annual Census of Women Directors and Executive Officers in the Russell 3000”: www.ionwomen.org

REPORT PRODUCED BY:

ST. CATHERINE UNIVERSITY A dynamic university educating students to lead and influence, St. Catherine University prepares students to make a difference in their profession, their communities and the world. St. Kate’s encompasses the largest, most innovative college for women in the nation and a range of graduate and associate programs for women and men.

MINNESOTA WOMEN’S ECONOMIC ROUNDTABLE Founded in 1979, the Minnesota Women’s Economic Roundtable (MWER) is a forum for high-profile women leaders to become more knowledgeable about cutting-edge economic issues, to discuss the implications of the economy on professional and personal lives and to contribute to the formation of economic policies.

Learn more at ionwomen.org. l View all seven years of the Minnesota Census at mncensus.stkate.edu.

Marnie Ochs-Raleigh

Marnie Ochs-Raleigh’s company operates at the high end of the spectrum, with more than $1 million in annual revenue. Ochs-Raleigh is CEO of Evolve Systems, which works with companies seeking expertise in website development or online marketing. The firm develops websites and creates customized software, and also provides merchant card processing. Clients include the Colorado Supreme Court, Asics Corp., and Nystrom Building Products.

Women-owned businesses had an average of 8.3 employees in 2007, according to the U.S. Department of Commerce. Evolve has more than 30 workers. Ochs-Raleigh says her company is still growing, but that she never wanted to work for a Fortune 500-size firm. She’s a sixth-generation entrepreneur who began by working for her father’s construction business. She recalls being “harassed and teased and threatened” when she donned a hardhat and steel-toe boots to go into the field and inspect commercial building projects.

When Ochs-Raleigh and her husband started Evolve, she had experience in selling and relationships, and finding solutions for clients, and he had expertise in websites. “Business is really about doing what you say you’re going to do. It’s part of your DNA,” Ochs-Raleigh notes. “Our business has grown by referrals. We have clients who have been with us since day one.”

As the CEO of her own company, she says she no longer faces the harassment that she dealt with at the beginning of her career, and is

u Kay, K. and Shipman, C. (2014), “The Confidence Gap,” The Atlantic Monthly (May 2014), pp. 56-66 u Matsa, D. and Miller, A. (2011), “Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership,” The American Economic Review, 101 (3),

635-639 u McKinsey & Company (2013), “Women Matter: Gender Diversity in Top Management – Moving Corporate Culture, Moving Boundaries”: www.mckinsey.com u MSCI Inc. (2014), “2014 Survey of Women on Boards”: www.msci.com

happy to be “writing my own ticket.” Ochs-Raleigh says that other women in business still face discrimination: “In bigger corporations, women face a different set of problems. They continue to fight gender pay gaps. They continue to deal with harassment. They are constantly faced with the glass ceiling.”

Ochs-Raleigh has served on corporate and advisory boards, and mentors “a ton of people.” She has volunteered with nonprofits such as Alexandra House shelter for women, the Girl Scouts and the Twin Cities North Chamber of Commerce. Ochs-Raleigh says she would be very interested in serving on a large corporate board—but only after she completes her current term as president of the Minnesota chapter of the National Association of Women Business Owners (NAWBO).

Ochs-Raleigh says studies show that diverse corporate boards are more effective. “From a business perspective,” she explains, “it’s understanding some of the details that make differences in people’s lives.” Most big corporations do business with big, small and medium-sized enterprises, so they need to understand their customers, which may include companies of varying size, as well as nonprofit and government entities.

Both Ochs-Raleigh and Farris believe that bringing a women’s perspective to the corporate boardroom will benefit corporations.

Farris says women are “especially good about resource-sharing.” If she were to serve on a board, it would probably be in the health care sector, where she has worked, Farris says. “I have a knowledge base. I may not know all the answers, but I know what questions to ask.”

Ochs-Raleigh says women tend to read people and groups well, and to be peacemakers, which would help dealing with conflicts that arise within boards and cause decision-making to “stall out.”

As engaged, thoughtful business owners, Farris and Ochs-Raleigh exemplify the “gender dividend” identified in a recent Deloitte report that details “the positive and often double-digit difference in productivity between those organizations with more women as leaders compared to those with less.”

As the 2014 Minnesota Census of Women in Corporate Leadership concludes: “The stakes are high. To compete globally, we must engage the full array of talented Minnesota women and men as our corporate leaders.” u

u Sandberg, Sheryl (2013), Lean In: Women, Work and the Will to Lead (Knopf): www.leanin.org u Woolley, A.W.; Chabris, C.F.; Pentland, A.; Hashmi, N. and Malone, T. W. (2010), “Collective Intelligence: Number of Women in Group Linked to Effectiveness in Solving

Difficult Problems, Science Daily (October 2, 2010). u Torchia, M., Calabro, A. and Huse, M. (2011), “Women Directors on Corporate Boards: From Tokenism to Critical Mass,” Journal of Business Ethics 102:299-317

mncensus.stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2015

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