2016 Minnesota Census of Women in Corporate Leadership

The 2016 Minnesota Census of Women in Corporate Leadership

How Minnesota’s Top 85 Public Companies Rank

Refreshing BENEFITS Corporate board diversity improves as a growing number of boards refresh their ranks.

EXECUTIVE SUMMARY

Cracks in the Ceiling Minnesota companies are making significant progress in seating more women on boards and in executive offices.

By Joann Bangs, Ph.D., and Rebecca Hawthorne, Ph.D. St. Catherine University, Master of Arts in Organizational Leadership (MAOL) program

About the Census This report is produced by St. Catherine University with research from the Master of Arts in Organizational Leadership program.

G

ender parity in corporate America has reached a tipping point in importance, an emphasis that is increasingly playing out in board rooms and senior executive suites as the inclusion of talented women and minorities in these positions is now considered essential to competing in a global economy.

Across corporate America, 78 percent of public company CEOs embraced gender parity as a top 10 business priority in 2016—a striking increase from 56 percent in 2012 (LeanIn.org and McKinsey & Co., 2016).

In addition, the association

of American CEOs known as the Business Roundtable underscored the importance of gender parity in its 2016 edition of governance principles. The organization strongly endorsed links between gender and ethnic board diversity, board effectiveness, and long-term value creation (Peregrine, 2016).

Understanding how Minnesota fits into this landscape—and why it’s important—is the purpose of The Minnesota Census of Women in Corporate Leadership. Each year, the report identifies public companies in our state that have made progress diversifying their

boards of directors and senior leadership teams.

And this year’s ninth annual Minnesota Census reports the most significant growth to date in both the number and percentage of women holding leadership positions on Minnesota company boards and in senior executive suites.

While some of the improvement stems from a reduction in the number of companies reviewed,* significant gains were made across the 85 companies studied. Women leaders advanced onto boards in record numbers, despite the smaller number of public

A Call To Action

By ReBecca Koenig Roloff, president, St. Catherine University

W

omen and diversity are topics close to my heart, and I am glad to see some Minnesota companies taking both as seriously as I do.

At St. Kate’s, our mission has been and will always be one of educating women to lead and influence, propelling them to create a world where women break barriers and make history. I challenge all of Minnesota’s publicly held companies to follow in our footsteps.

Bottom line: Invest in women; grow them as leaders.

The case for leadership diversity in business is clear. It results in stronger financial performance, creative innovation and a greater ability to adapt in an ever-changing, increasingly multicultural environment.

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While we are encouraged by continued progress toward diversifying our corporate leaders, much work remains.

When this Census work began, we set an initial goal of reaching 20 percent women on boards and in executive suites. Well, it’s 2017, and we’re almost there. It’s time to set a new target.

How about 25 percent by 2020? It’s a great number, and I promise you it’s one St. Catherine University will celebrate when we achieve it! Then we will raise the bar again.

What about appointing 25 new women of color to executive positions by 2020? Today, only 3.4 percent women of color serve on boards. We must aim higher.

Every appointment is an opportunity for us to optimize the mix of talent and

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ReBecca Koenig Roloff

perspective in our organizations. Why would we hesitate?

St. Catherine University is proud to support the work of our faculty researchers, Joann Bangs and Rebecca Hawthorne, but we couldn’t do it without our sponsors. Thank you for helping us continue the important work of advancing women in all forms of corporate leadership. p

19.9%*

19.0%*

19.4% 15.5%

14.9%

17.8%

18.6% 14.9%

14.5%

17.4%

17.4% 14.2%

14.3%

15.2%

15.5%

14.2%

10

14.2%

15

16.3%

MINNESOTA WOMEN IN CORPORATE LEADERSHIP

5

% Women Directors

% Women Executive Officers

2016

2015

2014

2013

2012

2011

2010

2009

0 2008

Joann Bangs

*Note: The sample for this research tracks the Star Tribune and Minneapolis/St. Paul Business Journal annual lists of the largest public companies based in Minnesota. From 2008 to 2015, the publications tracked 100 companies. Only 85 companies could be tracked in 2016, as both the Star Tribune and Business Journal reduced their data sets to reflect the changing landscape of Minnesota’s publicly traded companies. An increase in mergers and a reduction in IPOs resulted in significantly fewer public companies in Minnesota in 2016.

Q 85 companies in 2016, 100 companies in all other years

MINNESOTA DIRECTORS IN 2016

Rebecca Hawthorne

companies and accompanying leadership opportunities in 2016.

Strides forward

M

ore directorships in Minnesota are held by women, and more companies have at least one woman director.

Among Minnesota’s 85 largest public companies with revenues from less than $1 million to $157 billion, there were 709 available board seats in 2016.

Women held 135, or 19 percent, of these positions—an increase of 3.5 percentage points from 2015. This is the highest percentage reported in Minnesota in nine years.

Seventy-one Minnesota Census companies have women directors—five more companies than 2015—despite a decrease in the number of companies in the 2016 sample and a decrease in total available board seats.

Such significant strides toward gender parity are driven by board leadership: CEOs,

lead directors, board chairs, and nominating and governance comWhite Women 15.7% mittees (PWC, 2016). {111} Women of color, however, made only incremental progress Men 81% in board appointments {574} in 2016. Just three more companies have added directors who are women of color, for a total of 22 companies. Women of color are a higher percentage than the most underrepresented the national average of 4.6 group in corporate leaderpercent of S&P 500 compaship, trailing white men, nies (Catalyst, 2016). Such men of color, and white women-led companies conwomen, despite compristinue to provide strong role ing 20 percent of the U.S. models for other women population (LeanIn.Org and leaders, and demonstrate McKinsey & Co., 2016). how gender diversity can be Minnesota compaachieved. nies also increased their Three of these comparepresentation of women nies—Christopher & Banks in senior executive leaderCorp., Electromed Inc. and ship roles (Section 16b Select Comfort Corp.—reofficers) to 19.9 percent in ceived Special Distinction 2016, a small increase of 0.5 status from this year’s percentage points. HowMinnesota Census because ever, this increase is due to 30 percent or more of their a reduction in the number directors are women and 30 of companies studied. percent or more of their exThe percentage across the ecutive officers are women. remaining 85 companies Buffalo Wild Wings Inc. in the Minnesota Census and Clearfield Inc. received sample held stable.

Honor Roll status because In the C-suite, women 20 percent or more of their CEOs run 8 percent of Mindirectors and executive ofnesota Census companies— ficers are women.

Women of Color 3.4%

{24}

Minnesota companies exemplify the “trickle-down effect” that occurs in companies with women CEOs and several female board members, which tend to provide increased opportunity for other women executives (Ernst & Young, 2013; Matsa and Miller, 2011).

Attaining critical mass

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ore Minnesota companies have attained a critical mass of women corporate leaders. In 2016, a plurality of Minnesota companies moved beyond “the one-woman show” (a single woman director).

Today, two or more women directors are the norm among Minnesota boards with female directors—and quite the accomplishment!

In 2016, 47 percent of Minnesota Census companies

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had two or more women directors, compared to 34 percent in 2015. In addition, 14 Minnesota companies had three or more female directors, and 13 had three or more female executive officers.

A growing body of research documents the positive impact of women leaders once a company has three or more women on its board or more than 30 percent female representation in corporate leadership: • Stronger financial performance (The Peterson Institute for International Economics and Ernst & Young, 2016; McKinsey & Co., 2015; Crédit Suisse, 2013; Catalyst, 2011) • Increased innovation (Dezso and Ross, 2012) • Improved decisionmaking and group performance (McKinsey & Co., 2013; Woolley, Chabris, et al 2010).

Significant strides toward gender parity in corporate leadership require diversifying both the boardroom and the senior executive ranks.

Fifty-five of Minnesota’s 85 largest public companies (65 percent) had both women corporate directors and women executive officers in 2016, a net increase of three companies from 2015. This is the highest percentage of companies with both women corporate directors and women executive officers recorded in nine years.

Three companies deserve special recognition for achieving a net increase in both female directors and executive officers in 2016: Arctic Cat, Best Buy, and U.S. Bancorp. Senior women executive officers build the talent pool for qualified women corporate directors.

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The challenge ahead

W

hile progress is being made in Minnesota, women still remain underrepresented at every level of the corporate pipeline in the United States, despite years of diversity initiatives.

At the current incremental rate of change, it will take 40 years for women’s representation on U.S. boards to equal men’s, according to the U.S. Government Accountability Office (PWC, 2016).

Accelerating progress for women moving up the corporate ladder and into the executive ranks requires eliminating numerous roadblocks. Women are less likely than their male counterparts to receive that first promotion to manager, restricting their ascent toward senior leadership roles.

Promotion rates, access to opportunities and feedback, sponsorship by senior leaders, shifts to staff roles as opposed to line roles, access to influential professional networks, work-life balance, and confidence issues also hamper their advancement.

“Women face a workplace skewed in favor of men and a steeper path to leadership,” notes LeanIn.org and McKinsey & Co. (2016).

This helps explain why CEO commitment to gender parity has reached an all-time high. Translating commitment into action remains a challenge, but progress is being made. For example, The Paradigm for Parity Coalition (paradigm4parity.com), launched in December, has pledges from 28 CEOs. It specifies a five-point plan of concurrent, measurable corporate actions focused on achieving gender parity across all levels of business leadership by 2030. Actions include: 1} Eliminating or minimiz-

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MINNESOTA EXECUTIVE OFFICERS IN 2016

Women 19.9%

{116} Men 80.1%

{466}

ing unconscious bias in ted to gender inclusiveness. the workplace.

“Cargill is proud to be 2} Significantly increasing among the first to sign on the number of women to the Paradigm for Parity,” in senior operating roles, says CEO and Chairman with the near-term goal David MacLennan. “We beof at least 30 percent lieve inclusive teams deliver representation in all value, and we are commitleadership groups. ted to doing the important 3} Measuring targets and work to make gender maintaining accountparity a reality. Whether it’s ability by providing diversifying the board room regular progress reports. or providing opportunities 4} Basing career progress for women working on the on business results and front lines of food, agriperformance, rather culture, and nutrition, we than physical presence are taking action to build a in the office. company where employees 5} Providing sponsors, not thrive.” (bit.ly/2hjJcRM) just mentors, to women Corporate America is no who are well positioned longer just talking the talk for long-term success. when it comes to gender Such comprehensive parity on boards and in Cactions and measurable tarsuites. As a collective mass gets reshape structural supof CEOs, board chairs, and port and workplace culture lead directors make such for women and men, addiversity a key priority and dressing both internal and governance principle, the external barriers to women’s balance of genders in corpoadvancement. They even rate leadership is heading in the playing field and hold the right direction. p corporate leaderMinnesota Women in Leadership ship accountable for moving toward a new Companies Executive Officers norm—one in which Three or more women 13 women and men executive officers have equal power, 20 Two women executive officers status, and opportu29 One woman executive officer nity.

23 No women executive officers While not included in this research of Companies Directors Minnesota’s public 14 Three or more women directors companies, Cargill— 26 Two women directors the state’s largest 31 One woman director private company— 14 No women directors has publicly commit-

HONOR ROLL AND SPECIAL DISTINCTION COMPANIES

Breaking Barriers Minnesota companies make strides in evening the gender ratio on their corporate leadership teams.

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onor Roll and Special Distinction companies serve as models for successfully attracting and retaining a critical mass of highly qualified women leaders. They provide the structural support and workplace culture necessary to advance both women and men successfully in their careers.

Minnesota Census companies have boards ranging from three to 15 seats and list from one to 18 Section 16b executive officers in 2016. Therefore, Honor Roll criteria focuses on percentages of women corporate directors and women executive officers.

Companies with both 20 percent or more women corporate directors and 20 percent or more women executive officers receive Honor Roll distinction. Special Distinction is awarded to companies with 30 percent or more women directors and 30 percent or more women executive officers. Companies are listed by revenue category and by CEO—those in the best position to serve as catalysts for change.

Designations are based on SEC filings as of June 30, 2016.

The total number of Honor Roll companies increased from 16 to 19 in 2016—a notable increase! Ecolab lost Honor Roll status in 2016 after the departure of one female executive. Four Minnesota Companies with Three or More Women Directors Company Name

Women Directors

companies joined the 2016 Honor Roll by adding one woman director (Apogee Enterprises Inc.) or one woman executive officer (Medtronic), reducing the size of the board (Clearfield Inc.), or reducing the number of executive officer positions (MTS Systems Corp.).

The impact of adding or subtracting one female leader reveals the tenuous nature of the progress Minnesota companies have made toward achieving gender parity on their corporate leadership teams.

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our Minnesota companies have retained Honor Roll status for the past nine years: Christopher & Banks, Deluxe Corp., HMN Financial Inc., and Target Corp. These consistently ranked 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 2016, six Minnesota companies attained this critical mass of 30 percent or more on both their boards and in their executive offices to receive the designation of Special Distinction p

Minnesota Companies with Three or More Women Executive Officers Company Name

Target Corp.

Best Buy Co. Inc.

General Mills Inc. Hormel Foods Corp.

Medtronic Plc. U.S. Bancorp Allete Inc. Ameriprise Financial Inc.

(*Special Distinction Company ) Fortune 500 Best Buy Co. Inc.* | CEO Hubert Joly Target Corp.* | CEO Brian C. Cornell U.S. Bancorp | CEO Richard K. Davis UnitedHealth Group Inc. | CEO Stephen J. Hemsley

Other Companies Apogee Enterprises Inc. | CEO Joseph F. Puishys Buffalo Wild Wings Inc. | CEO Sally J. Smith Christopher & Banks Corp.* | CEO LuAnn Via Clearfield Inc. | CEO Cheryl P. Beranek Deluxe Corp. | CEO Lee L. Schram Electromed Inc.* | CEO Kathleen Skarvan G&K Services Inc. | CEO Douglas A. Milroy H.B. Fuller Co. | CEO James J. Owens HMN Financial Inc. | CEO Bradley C. Krehbiel Medtronic Plc. | CEO Omar Ishrak MTS Systems Corp. | CEO Jeffery A. Graves

Target Corp.

Ecolab Inc.

Special Distinction Companies

Notable Honor Roll Longevity

Select Comfort Corp.

Best Buy Co. Inc.

Honor Roll and

Women Exec.

Officers

New Ulm Telecom Inc. | CEO Bill D. Otis Patterson Cos. Inc.* | CEO Scott P. Anderson Select Comfort Corp.* | CEO Shelly R. Ibach Tennant Co. | CEO H. Chris Killingstad

Buffalo Wild Wings Inc. Christopher& Banks Corp.

H.B. Fuller Co.

Notable Honor Roll Longevity

Select Comfort Corp.

U.S. Bancorp 3M Co. Deluxe Corp.

Christopher & Banks Corp.

Deluxe Corp.

Christopher & Banks Corp.

Donaldson Co. Inc.

HMN Financial Inc.

Otter Tail Corp.

Hormel Foods Corp.

Target Corp.

Patterson Cos. Inc.

TCF Financial Corp.

Xcel Energy Inc.

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BOARDS OF DIRECTORS

Striking Progress Minnesota’s top 85 public companies show improvement after years of stalled progress.

Women Corporate Directors by Seats

WOMEN CORPORATE DIRECTORS

(Based on SEC filings as of June 30, 2016)

Women Corporate Directors by Company

W

omen serve on the boards of 71 of Minnesota’s 85 largest publicly held companies, an increase of five companies since 2015. The number of companies with women directors increased, despite fewer companies in the 2016 sample and a decrease in the number of available seats.

Four companies had a net increase of two women directors in 2016: Best Buy, Select Comfort, Supervalu Inc., and Target.

These companies significantly increased gender representation toward more diverse boards.

Having two or more female directors is the most common representation of women on Minnesota boards, surpassing the previously common “one-woman show” of just one female director. Forty of the top 85 companies have two or more women corporate directors, 31 have one, and 14 have none—striking progress.

Women of Color Directors

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n 2016, a net increase of three women of color were appointed to director positions, demonstrating incremental progress. Women of color—as classified and named by the U.S. Census Bureau—include women who are Hispanic or Latina, black or African-American, native Hawaiian or other Pacific Islander, Asian, American Indian or Alaska native, or two or more races.

Three more companies in 2016 have women of color directors, bringing the total to 22 of Minnesota’s 85 largest public companies. Of these 22, two companies have two women of

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135*

135 130 125

115

2012

116

115

110

2011

116

119

119 117

115

121

120

2016

2015

2014

2013

2010

2009

105 2008

W

omen hold 19 percent, or 135, of the 709 available board seats in Minnesota’s 85 largest public companies. This percentage increased 3.5 percentage points from 15.5 percent in 2015. About half (1.7 percentage points) of this impressive increase comes from the reduction in companies studied, from 100 to 85. The 15 companies removed from the study in 2016 are primarily small businesses, which tend to have less gender diversity in leadership.

However, significant gains in gender diversity were reported on the boards of the 85 studied companies. The remaining 1.8 percentage point change attributed to these companies is more than two times the level of change observed in any other year—a significant increase after years of stalled progress!

Women gained a net increase of 14 director positions in 2016, despite a reduced sample size of fewer companies and a decrease in the number of available seats.

Eighty-one new directors were appointed to Minnesota boards in 2016. Of these new directors, 24 are women (29.6 percent). This is a significant increase compared with the 18.7 percent new women directors appointed in 2015. All new women directors appointed in 2016 are independent directors.

Q 85 companies in 2016, 100 companies in all other years

color serving on their boards. The 20 other companies each have one female of color director.

Five of the 81 new directors added to Minnesota’s largest public companies in 2016 were women of color. Women of color now hold 3.4 percent of the 709 total available board seats in Minnesota’s 85 Companies Where Women largest publicly held companies, an increase Directors Made Gains New Women of 0.7 percentage points Company Directors from 2015. About half Best Buy Co. Inc.* 2 (0.3 percentage points) of the change is due Select Comfort Corp.* 2 to the decrease in the Supervalu Inc.* 2 number of companies Target Corp.* 2 studied.

3M Co. 1 Women of color hold Apogee Enterprises Inc.* 1 17.8 percent of the 135 Arctic Cat Inc.* 1 board seats held by women.

Christopher & Banks Corp.

1

Companies Where Women Directors Made Gains

Enteromedics Inc.

1

Evine Live Inc.*

1

General Mills Inc.

1

here were other signs of progress: 20 of the 46 Minnesota Census companies with new directors in 2016 added female directors.

Fourteen companies reported a net increase in female corporate directors in 2016. p

Graco Inc.*

1

Ikonics Corp.

1

Imation Corp.*

1

Piper Jaffray Cos.

1

Polaris Industries Inc.*

1

Regis Corp.*

1

SPS Commerce Inc.*

1

TCF Financial Corp.*

1

U.S. Bancorp*

1

T

*Net increase in women directors

EXECUTIVE OFFICERS

Little Movement The percentage of women executive officers in Minnesota’s top 85 public companies remains unchanged.

Women Executive Officers (Section 16b)

Companies Where Women Executive Officers Made Gains Company

(Based on SEC filings as of June 30, 2016)

C

riteria for the inclusion in the executive officer category vary by company.

To be consistent, the Minnesota Census identifies only those individuals formally designated as Section 16b executive officers in SEC filings. In 2016, the total number of executive officer positions across Minnesota’s 85 largest public companies dropped from 638 to 582, a loss of 56 positions. This is mainly because of the decrease in the number of companies studied.

• Women held 19.9 percent of the available executive officer positions in Minnesota’s 85 largest public companies in 2016, an increase of 0.5 percentage points from 2015. However, the entire increase was caused by the drop in the number of companies studied.

• Sixty-two of the top 85 public companies have women executive officers.

Companies Where Women Executive Officers Made Gains

T

welve companies reported a net increase in the number of women executive officers in 2016.

Net increase in Women Executive Officers

3M Co.

1

Arctic Cat Inc.

1

Best Buy Co. Inc.

1

Enteromedics Inc.

1

General Mills Inc.

1

Insignia Systems Inc.

1

Medtronic PLC

1

Pentair PLC

1

Piper Jaffray Cos.

1

Silver Bay Realty Trust Corp.

1

Tile Shop Holdings Inc.

1

U.S. Bancorp

1

T

he 2016 Minnesota Census identified women in top executive officer positions holding the following titles: CEO, president, COO, CFO, and CTO. Twenty-four women hold these executive officer positions across Minnesota Census companies, two fewer than 2015. The ranks of women CEOs increased to seven in 2016. The number of women CFOs decreased from 19 to 16, reversing a steady upward trend.

Zero-Zero Companies

T

Top Executive Positions: C-Suite Selected Positions

The Top Executive Positions: C-Suite

Number of Women

Chief Executive Officer

7

President

6

Chief Operating Officer

1

Chief Financial Officer

16

Chief Technology Officer

0

Women CEOs 2016 Company

CEO

Buffalo Wild Wings Inc.

Sally J. Smith

Christopher & Banks Corp.

LuAnn Via

Clearfield Inc.

Cheryl P. Beranek

Electromed Inc.

Kathleen S. Skarvan

Insignia Systems Inc.

Kristine A. Glancy

Proto Labs Inc.

Victoria M. Holt

Select Comfort Corp.

Shelly R. Ibach

Zero-Zero Companies

Company

CCEO

ANI Pharmaceuticals Inc.

Arthur S. Przybyl

ATRM Holdings Inc.

Daniel M. Koch

Electro-Sensors Inc.

David L. Klenk

Famous Dave's of America Inc.

Adam J. Wright

GWG Holdings Inc.

Jon R. Sabes

IntriCon Corp.

Mark S. Gorder

WSI Industries Inc.

Benjamin T. Rashleger

he number of Minnesota companies that include no women corporate directors or women executive officers (Section 16b) on their corporate leadership teams dropped to seven in 2016, due primarily to the decrease in sample size to 85 companies. Eleven of the 15 companies dropped from the Minnesota Census sample in 2016 were zero-zero companies.

Three companies, however, departed the zero-zero list by appointing women to leadership roles: Imation Corp. added one female director, while Tile Shop Holdings Inc. and Insignia Systems Inc. each added one woman executive officer. One new company joined the zero-zero list: ANI Pharmaceuticals Inc., which dropped one female executive from its ranks.

Since 2009, the number of companies with all male-boards has dropped nationally, reports Ernst & Young (2013). The shift in the Minnesota Census sample significantly altered the zero-zero roster, as many smaller companies were removed from the list.

Currently, only 8 percent of Minnesota’s 85 largest public companies have no women in corporate leadership roles. p

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FEATURE

Refreshing the Board

Companies develop strong boards of directors—and discover a path to diversity—by regularly seating new members.

By Suzy Frisch

acing declining market share, increasing competition from online retailers, and a management crisis, Best Buy in late 2012 required a different direction and fresh leadership. As a turnaround plan from new CEO Hubert Joly began, the company embarked on refreshing its corporate board.

Seven of the 10 current directors have joined the board since September 2012, including people from outside of retail and with varied skills to match Best Buy's evolving strategy. The company also remained focused on its goals to seat a board with a significant number of women, says Kathy Higgins Victor, a director since 1999 and chair of the nominating and governance committee.

“We were very deliberate in our board refreshment.

We looked at what the future strategic direction for Best Buy needed to be

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and identified the skill sets on the board to push that direction forward, as well as what gaps needed to be addressed,” says Victor, who is also president and founder of the executive development and leadership coaching firm Centera Corp.

Today, the board is 40 percent female and has fewer retail-centric directors. “When you don’t have a homogeneous group, you are having more discussion and debate and an examination of many options,” says Victor. “It’s really allowed us to achieve better outcomes with some of our strategic decisions.”

Best Buy is part of a growing trend. Whether it’s to add people with diverse talents or incorporate a better mix of gender, ethnicity, age, and industry, shaking up corporate boards helps businesses face constantly evolving challenges.

The National Association of Corporate Directors (NACD) recently issued a report, Building the Strategic-Asset Board, urging companies to regularly refresh their boards because of the myriad challenges they face, including cyber-threats, new technology, demographic shifts, and relentless competition from existing and new players. Greater diversity improves a board’s chances

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of navigating the complexity and uncertainty of today’s business world, says Reatha Clark King, NACD board chair emeritus and a corporate director for nearly 40 years.

Steps to refresh

M

any corporate boards have adopted an intentional process of refreshment using three main tactics: term limits, mandatory retirement age, and regular evaluations of board and director performance.

Mark Sheffert, chairman and CEO of the Manchester Cos. Inc., a board and management advisory firm, believes in refreshing

an opportunity to actively seek out more women and ethnically diverse directors who reflect the company’s customers and community.

“It’s a strategic decision to have a diverse board, but it’s an important one because it’s representative of the marketplace and your products,” says Sheffert, who has served on more than 40 corporate boards. “The talent pool for directors is not huge. Why give up half the talent out of the chute?

It makes more sense to tap into that wealth of talent that hasn’t been tapped.

We’ve made progress, but it’s slow. We still have a ways to go.”

In fact, only 125 out of the Fortune 1000 companies in the United States have boards with more than 30 percent female directors, according to Equilar, an executive data research firm.

Sheffert led the charge to develop a diverse board at Allina Health, where he served as chair of the governance and nominating committee. The board brought on Sally Smith, president and CEO of Buffalo Wild Wings; Deb

“When you don’t have a homogeneous group, you are having more discussion and debate and an examination of many options.”

—Kathy Higgins Victor, president and founder, Centera Corp.

boards to prevent directors from losing their objectivity and independence by growing too close to management after years of service, while also paving the way to remove underperforming directors. In tandem, board refreshment provides

Schoneman, CFO of Piper Jaffray Cos.; and Barbara Butts Williams, executive dean at Capella University.

Now seven of 19 directors are women.

“We had a very powerful board that was incisive, asked questions that went to

Reatha Clark King

the economics of a decision right away, and thought more about how decisions will affect the community, employees, and our relationship with the unions,” says Sheffert, who recently stepped off the board after reaching his term limit.

Strategic governance

C

hanging its board composition has been an important part of Target’s corporate governance, particularly lately, as it applies many of the principles of board refreshment. Directors are limited to 20 years of service and must retire at age 72, notes its 2016 proxy statement. In addition, directors rotate committee assignments regularly, and committee chairs rotate every four to six years.

Target strives for gender balance on its board and in the C-suite, with women holding 38 percent of board seats and more than 40 percent of C-level positions.

That gender balance has been a longstanding tradition at Target, reinforced

by CEO Brian Cornell, who recently joined the board of Catalyst, a nonprofit that focuses on advancing women in leadership positions, says Target spokesperson Erin Conroy.

In 2015, Target expanded its board to add directors with rich experience in media, retail, and consumer

products. It grew to 13 members by bringing on four new directors, two of them women.

Other companies focus on term limits as a refreshment technique, including HMN Financial, the parent company of Home Federal Savings Bank in Rochester.

It instituted term limits in 2008 that restrict directors to no more than 12 years or four terms. The board is also considering limiting committee chairs to six or eight years so other directors can assume leadership positions, says director Wendy Shannon.

“It’s important to refresh boards because it brings new energy, as well as different perspectives. Twelve years is long enough, and there is a lot of talent out there,” says Shannon.

Evaluate to refresh

L

ong-time corporate director Linda Hall, an entrepreneur-in-residence at the University of Minnesota Carlson School of Management, has experienced board refreshment on her four corporate boards—to positive effect. The boards regularly evaluate the skills of current directors and how they match the businesses’ strategies and future challenges. After finding holes or anticipating a director’s planned retirement, all four boards added two to three new directors.

Linda Hall

“In every case, each of these boards is functioning at a higher level than it was before as a result of the new members,” says Hall.

Serving on four corporate boards, Mary Schmid Daugherty is involved with refreshing the boards’ memberships through evaluations. Daugherty, an associate professor of finance at University of St. Thomas, observes that these boards generally refresh to fill expertise gaps, with an eye on achieving diversity goals. The most critical element is finding directors with the companies’ most-needed skills. It’s great if someone has those skills and is female, but gender alone isn’t the chief criteria, she says.

Several of Daugherty’s boards evaluate directors using an NACD survey on gauging the performance of individuals and the board overall. She finds that they are excellent tools for assessing directors’ skills and determining if they match the company’s current needs.

At one business, board leaders surmised through an evaluation that board composition was overloaded with finance experts and lacking in IT, which was key as it prepared to implement a new enterprise resource planning system. The board asked one director to step down and brought on an IT specialist instead.

While there are many excellent reasons for companies to rejuvenate their boards, most don’t actively pursue it. In fact, only 3 percent of S&P 500 companies’ boards in the United States have term-limit policies, though closer to 75 percent have mandatory retirement ages, according to the 2015 Board Index published by Spencer Stuart.

Numerous businesses do not proactively refresh their boards because it often takes directors several years to perform at their peak, explains Hall. Directors must master a company, its industry, and competitors, while developing familiarity with the executive team—a slow process because most boards meet just four times a year. Once boards build up this knowledge base, they don’t want to let it go too quickly, she says.

In addition, in some cor-

Mark Sheffert

porations directors typically serve longer than CEOs, so measures like term limits may be counterproductive.

“Often these boards own the institutional knowledge and historical perspective, and boards carry the weight of continuity,” says Hall.

However, board refreshments are one way to maintain strong corporate governance and ensure that boards function at their highest levels. And as boards seek to change their mix of directors, they open opportunities to broaden their diversity, says King.

“Companies want the best people, quality results and the best reputation. To be considered a strong corporate performer, companies need to do a mix of things to have strong leadership, and that includes board diversity and board refreshment.” p

stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2017

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CORPORATE DIRECTORS (Based on SEC Filings as of June 30, 2016) Company 3M Co. 3M Co. Allete, Inc. Allete, Inc. Allete, Inc. Ameriprise Financial, Inc. Ameriprise Financial, Inc. Ameriprise Financial, Inc. Apogee Enterprises, Inc. Apogee Enterprises, Inc. Arctic Cat, Inc. Arctic Cat, Inc. Best Buy Co., Inc. Best Buy Co., Inc. Best Buy Co., Inc. Best Buy Co., Inc. BioAmber, Inc. Bio-Techne Corp.

Buffalo Wild Wings, Inc. Buffalo Wild Wings, Inc. C.H. Robinson Worldwide, Inc. C.H. Robinson Worldwide, Inc. Canterbury Park Holding Corp.

Capella Education Co. Capella Education Co. Cardiovascular Systems, Inc. Christopher & Banks Corp.

Christopher & Banks Corp.

Christopher & Banks Corp.

Clearfield, Inc.

Corporate Director Sondra L. Barbour Patricia A. Woertz Kathryn W. Dindo Heidi E. Jimmerson Madeleine W. Ludlow Dianne Neal Blixt Amy DiGeso Siri S. Marshall Sara L. Hays Patricia K. Wagner Kim A. Brink Susan E. Lester Lisa M. Caputo Kathy J. Higgins Victor Karen A. McLoughlin Claudia F. Munce Ellen B. Richstone Karen A. Holbrook, Ph.D. Cynthia L. Davis Sally J. Smith Mary J. Steele Guilfoile Jodee A. Kozlak Carin J. Offerman Rita D. Brogley Jody G. Miller Leslie L. Trigg LuAnn Via Lisa Wardell Laura Weil Cheryl P. Beranek

Cogentix Medical, Inc.

Dr. Cheryl Pegus

Communications Systems, Inc. CyberOptics Corp.

Datalink Corp.

Deluxe Corp.

Donaldson Co., Inc. Ecolab, Inc. Ecolab, Inc. Ecolab, Inc. Ecolab, Inc. Electromed, Inc. Electromed, Inc. Enteromedics, Inc. Evine Live, Inc. Fastenal Co. Fastenal Co. G&K Services, Inc. G&K Services, Inc. General Mills, Inc. General Mills, Inc. General Mills, Inc. General Mills, Inc. Graco, Inc. Graco, Inc. H.B. Fuller Co. H.B. Fuller Co. Hawkins, Inc. HMN Financial, Inc. HMN Financial, Inc. Hormel Foods Corp.

Luella G. Goldberg Irene M. Qualters Mercedes A. Walton Cheryl E. Mayberry McKissack Mary Ann O’Dwyer Trudy Rautio Barbara J. Beck Tracy B. McKibben Victoria J. Reich Suzanne M. Vautrinot Lee A. Jones Kathleen S. Skarvan Lori C. McDougal Lisa Letizio Rita J. Heise Reyne K. Wisecup Lynn Crump-Caine Alice M. Richter Henrietta H. Fore Maria G. Henry Heidi G. Miller Dorothy A. Terrell Jody H. Feragen Martha A. Morfitt Maria Teresa Hilado Ann W. H. Simonds Mary J. Schumacher Wendy Shannon Patricia S. Simmons Jody H. Feragen

Hormel Foods Corp.

Elsa A. Murano, Ph.D.

Hormel Foods Corp.

Hormel Foods Corp.

Hutchinson Technology, Inc. Ikonics Corp.

Susan K. Nestegard Sally J. Smith Martha Goldberg Aronson Marianne Bohren

Deluxe Corp.

10

Title EVP, Information Systems and Global Solutions, Lockheed Martin Corp.

Retired Chairman of the Board and CEO, Archer-Daniels-Midland Co. Retired VP and Chief Risk Officer, FirstEnergy Corp.

Former EVP, Secretary and General Counsel, Florida East Coast Railway, LLC Former Principal, Market Capital Partners, LLC Former EVP and CFO, Reynolds American, Inc Retired EVP, Global HR, Estee Lauder Cos., Inc. Former SVP and General Counsel, General Mills, Inc. Managing Director and Co-Leader of the North American Board Practice of Allegis Partners President and CEO, Sempra U.S. Gas & Power COO, Team Detroit Private Investor and Former CFO, Homeside Lending, Inc. EVP and Chief Marketing and Communications Officer, Travelers Cos., Inc. President and Founder, Centera Corp.

CFO, Cognizant Technology Solutions Corp.

Venture Advisor, New Enterprise Associates Former CFO, Rohr Aerospace Senior Advisor to the President, University of South Florida Former VP, Nike and Former President, Nike Golf CEO and President, Buffalo Wild Wings, Inc. Chairman, MG Advisors, Inc. Global SVP, HR, Alibaba Group Principal, Puppy Good Start Former President and CEO, MyBuys CEO, Business Talent Group CEO, Outset Medical President and CEO, Christopher & Banks Corp.

Chair of the Board, EVP and COO, RLJ Cos. Founder, Village Lane Advisory LLC President and CEO, Clearfield, Inc. Director, Division of General Internal Medicine and Clinical Innovation and Associate Chair, Clinical Innovation, NYU Langone Medical Center and Clinical Professor, Medicine and Population Health, NYU School of Medicine Member, Board of Overseers, University of Minnesota, Carlson School of Management Division Director, Advanced Cyberinfrastructure, National Science Foundation Former Chairman and CEO, Cryo-Cell International, Inc. COO, Johnson Publishing Co., and President, JPC Digital Former SVP, Finance and Operations, and CFO, Wheels, Inc. Retired President and CEO, Carlson CEO, Learning Care Group, Inc. Founder and President, MAC Energy Advisors, LLC Former SVP and CFO, Essendent, Inc. President, Kilovolt Consulting, Inc. President and CEO, Rebiotix, Inc. President and CEO, Electromed, Inc. Former EVP, Optum, Inc., UnitedHealth Group, Inc. Independent Consultant, LivingHR, Inc. Business Consultant and Retired Corporate VP and CIO, Cargill, Inc. EVP, HR, Fastenal Co. Founder and CEO, Outsidein Consulting Retired CPA, KPMG LLP Chairman of the Board and CEO, Holsman International SVP and CFO, Kimberly-Clark Corp.

Retired President, JPMorgan International Managing Partner, FirstCap Advisors EVP and CFO, Hormel Foods Corp.

President and CEO, River Rock Partners, Inc. CFO, Allergan plc SVP and Chief Marketing Officer, General Mills, Inc. COO, Twin Cities Habitat for Humanity Assistant Professor, Education, Winona State University Retired, Mayo Clinic Medical Staff EVP and CFO, Hormel Foods Corp.

Director, Norman Borlaug Institute for International Agriculture, Professor, Animal Science and President Emerita, Texas A&M University Former President, Global Healthcare Sector, Ecolab, Inc. President and CEO, Buffalo Wild Wings, Inc. Former EVP, Strategic Planning, Ecolab, Inc. Executive Director, Western Lake Superior Sanitary District

APRIL 2017 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

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Company Image Sensing Systems, Inc. Imation Corp.

Medtronic Plc. Medtronic Plc. Medtronic Plc. Medtronic Plc. MGC Diagnostics Corp.

Mocon, Inc. Mosaic Co. Mosaic Co. MTS Systems Corp.

MTS Systems Corp.

New Ulm Telecom, Inc. New Ulm Telecom, Inc. Nortech Systems, Inc. Northern Oil and Gas, Inc. Northern Technologies International Corp.

NVE Corp.

OneBeacon Insurance Group Ltd. Otter Tail Corp.

Otter Tail Corp.

Otter Tail Corp.

Patterson Cos., Inc. Patterson Cos., Inc. Patterson Cos., Inc. Pentair PLC Pentair PLC Piper Jaffray Cos. Piper Jaffray Cos. Polaris Industries, Inc. Polaris Industries, Inc. Proto Labs, Inc. Qumu Corp.

Regis Corp.

Select Comfort Corp.

Select Comfort Corp.

Select Comfort Corp.

Select Comfort Corp.

Select Comfort Corp.

Silver Bay Realty Trust Corp.

SPS Commerce, Inc. St. Jude Medical, Inc. St. Jude Medical, Inc. Supervalu, Inc. Supervalu, Inc. Surmodics, Inc. Target Corp.

Target Corp.

Target Corp.

Target Corp.

Target Corp.

TCF Financial Corp.

TCF Financial Corp.

Tennant Co. Tennant Co. Toro Co. Toro Co. U.S. Bancorp U.S. Bancorp U.S. Bancorp U.S. Bancorp UnitedHealth Group, Inc. UnitedHealth Group, Inc. Valspar Corp.

Valspar Corp.

Winmark Corp.

Xcel Energy, Inc. Xcel Energy, Inc. Xcel Energy, Inc.

Corporate Director Melissa B. Fisher Tracy McKibben Shirley Ann Jackson, Ph.D. Elizabeth G. Nabel, M.D. Denise M. O’Leary Preetha Reddy Wendy D. Lynch, Ph.D. Kathleen P. Iverson Nancy E. Cooper Denise C. Johnson Barb J. Samardzich Gail P. Steinel Colleen R. Skillings Suzanne M. Spellacy Kathleen Iverson Lisa Bromiley

Title VP, Corporate Financial Planning and Analysis, Treasury and Investor Relations, Zynga, Inc. Founder and CEO, MAC Energy Advisors LLC President, Rensselaer Polytechnic Institute President, Brigham & Women’s Hospital Private Venture Capital Investor Executive Vice Chairperson, Apollo Hospitals Enterprise Ltd. President, Lynch Consulting, Ltd CEO, Black Hills IP Retired EVP and CFO, CA Inc. Group President, Resources Industries Group, Caterpillar, Inc. COO, Ford of Europe, Ford Motor Co. Owner, Executive Advisors CFO and HR Director, Minnesota Valley Testing Laboratories, Inc. VP and General Counsel, Taylor Corp.

CEO, Black Hills IP CFO, P3 Petroleum, LLC

Barbara D. Colwell

Director, Publishers Clearing House, LLC

Patricia M. Hollister Lois W. Grady Karen M. Bohn Kathryn O. Johnson Joyce Nelson Schuette Jody H. Feragen Sarena S. Lin Ellen A. Rudnick Glynis A. Bryan Billie Ida Williamson B. Kristine Johnson Sherry M. Smith Annette K. Clayton Gwenne A. Henricks Victoria M. Holt Kimberly K. Nelson M. Ann Rhoades Shelly R. Ibach Brenda J. Lauderback Barbara R. Matas Kathleen L. Nedorostek Vicki O’Meara Tanuja M. Dehne Tami L. Reller Barbara B. Hill Wendy L. Yarno Francesca Ruiz de Luzuriaga Mary A. Winston Susan E. Knight Roxanne S. Austin Melanie L. Healey Monica C. Lozano Mary E. Minnick Anne M. Mulcahy Karen L. Grandstrand Julie H. Sullivan Azita Arvani Carol S. Eicher Janet K. Cooper Katherine J. Harless Kimberly J. Harris Doreen Woo Ho Olivia F. Kirtley Karen S. Lynch Michele J. Hooper Gail R. Wilensky, Ph.D. Janel S. Haugarth Mae C. Jemison, M.D. Jenele C. Grassle Gail K. Boudreaux A. Patricia Sampson Kim Williams

Director, Finance, TEL FSI, Inc. Independent Consultant, Retired EVP and Director, Information Systems and Services, Hartford Life Inc. President, Galeo Group, LLC Owner/Principal, Johnson Environmental Concepts Retired Managing Director and Investment Banker, Piper Jaffray & Co. EVP and CFO, Hormel Foods Corp.

President, Cargill Feed and Nuitrition Executive Director and Clinical Professor, University of Chicago Booth School of Business CFO, Insight Enterprises, Inc. Former Senior Assurance Partner, Ernst & Young LLP President, Affinity Capital Management Former EVP and CFO, Supervalu, Inc. Chief Supply Chain Officer, Schneider Electric VP, Product Development and Global Technology, and CTO, Caterpillar Inc. President and CEO, Proto Labs, Inc. EVP and CFO, SPS Commerce, Inc. President, People Ink President and CEO, Select Comfort Corp.

Former President, Retail and Wholesale Group, Nine West Group, Inc. Former Managing Director and Chairman, Leveraged Finance, Citigroup Global Markets, Inc. Former Global CEO, Nine West Group CEO, Analytics Pros, Inc. Former EVP, CAO and Chief of Staff of NRG Energy, Inc. EVP and Chief Marketing Officer, Optum, UnitedHealth Group, Inc. Operating Partner, NexPhase Capital Chief Marketing Officer, HemoShear LLC Independent Business Development Consultant EVP and CFO, Family Dollar Stores, Inc. Former SVP and CFO, MTS Systems Corp.

President, Austin Investment Advisors Former Group President, North America, The Proctor & Gamble Co. Former Chairman, U.S. Hispanic Media, Inc. Partner, Lion Capital Chairman, Board of Trustees, Save The Children Federation, Inc. Chair, Bank and Finance Group, Fredrikson & Bryon, P.A. President, University of St. Thomas Head, Innovation Partnering, Nokia Networks President and CEO, Innocor, Inc. Former SVP and Treasurer, Qwest Communications International, Inc. Retired President and CEO, Idearc, Inc. President and CEO, Puget Energy, Inc. and Puget Sound Energy, Inc. Commissioner, San Francisco Port Commission Business Consultant President, Aetna, Inc. President and CEO, The Directors’ Council Senior Fellow, Project HOPE Retired EVP and President, Independent Business and Supply Chain Services, Supervalu, Inc. President, The Jemison Group, Inc. VP, Merchandising, Bluestem Brands, Inc. CEO and Founder, GKB Global Health, LLC CEO, President and Owner, The Sampson Group, Inc. Retired Partner, Wellington Management Co. LLP stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2017

11

EXECUTIVE OFFICERS (Based on SEC Filings as of June 30, 2016) Company 3M Co. 3M Co. 3M Co. Allete, Inc. Ameriprise Financial, Inc. Ameriprise Financial, Inc. Apogee Enterprises, Inc. Appliance Recycling Centers of America, Inc. Arctic Cat, Inc. Best Buy Co., Inc. Best Buy Co., Inc. Best Buy Co., Inc. Best Buy Co., Inc. Bio-Techne Corp.

Buffalo Wild Wings, Inc. Buffalo Wild Wings, Inc. Buffalo Wild Wings, Inc. Buffalo Wild Wings, Inc. C.H. Robinson Worldwide, Inc. Capella Education Co. Christopher & Banks Corp.

Christopher & Banks Corp.

Christopher & Banks Corp.

Christopher & Banks Corp.

Clearfield, Inc. Communications Systems, Inc. Datalink Corp.

Datalink Corp.

Deluxe Corp.

Deluxe Corp.

Deluxe Corp.

Digi International, Inc. Donaldson Co., Inc. Donaldson Co., Inc. Donaldson Co., Inc. Ecolab, Inc. Ecolab, Inc. Electromed, Inc. Entellus Medical, Inc. Entellus Medical, Inc. Enteromedics, Inc. Evine Live, Inc. Evine Live, Inc. Fastenal Co. Fastenal Co. G&K Services, Inc. General Mills, Inc. General Mills, Inc. Graco, Inc. Graco, Inc. H.B. Fuller Co. H.B. Fuller Co. H.B. Fuller Co. H.B. Fuller Co. Hawkins, Inc. Hawkins, Inc. HMN Financial, Inc. Hormel Foods Corp.

Hormel Foods Corp.

Hormel Foods Corp.

Hutchinson Technology, Inc. Insignia Systems, Inc. Medtronic Plc. Medtronic Plc. Mocon, Inc. Mosaic Co. MTS Systems Corp.

New Ulm Telecom, Inc. Nortech Systems, Inc. OneBeacon Insurance Group Ltd.

12

Executive Officer Julie Bushman Marlene M. McGrath Kimberly F. Price Deborah A. Amberg Kelli A. Hunter Deirdre D. McGraw Patricia A. Beithon Rachel L. Holmes Patricia L. Jones Paula F. Baker Shari L. Ballard Corie Barry Mary Lou Kelley Brenda Furlow Kathleen M. Benning Emily Decker Judith A. Shoulak Sally J. Smith Angela K. Freeman Renee L. Jackson Monica L. Dahl Michelle L. Rice Cindy J. Stemper LuAnn Via Cheryl P. Beranek Kristin A. Hlavka Patricia A. Hamm Denise M. Westenfield Amanda Brinkman Tracey Engelhardt Julie Loosbrock Tracy L. Roberts Amy C. Becker Sheila G. Kramer Mary Lynne Perushek Laurie M. Marsh Jill S. Wyant Kathleen S. Skarvan Margaret A. Boiano Karen E. Peterson Katherine S. Tweden, Ph.D. Jaime B. Nielsen Nicole Ostoya Sheryl A. Lisowski Reyne K. Wisecup Tracy C. Jokinen Kimberly A. Nelson Jacqueline Williams-Roll Caroline M. Chambers Karen Park Gallivan Heather A. Campe Paula Cooney Elin E. Gabriel Traci L. Jensen Theresa R. Moran Kathleen P. Pepski Susan K. Kolling Deanna T. Brady Jody H. Feragen Lori J. Marco Connie L. Pautz Kristine A. Glancy Karen L. Parkhill Carol A. Surface Elissa Lindsoe Corrine D. Ricard Catherine S. Powell Barbara A.J. Bornhoft Paula Graff Maureen A. Phillips

APRIL 2017 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

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Title SVP, Business Transformation and Information Technology SVP, HR SVP, Corporate Communications and Enterprise Services SVP, General Counsel and Secretary EVP, HR EVP, Marketing, Communications and Community Relations General Counsel and Secretary EVP, ARCA Recycling, Inc. Chief HR Officer Chief HR Officer President, U.S. Retail CFO President, E-Commerce SVP, General Counsel and Secretary EVP, Chief Strategy Officer and New Business Development SVP, General Counsel, Secretary EVP, President, North America Buffalo Wild Wings CEO, President and Director Chief HR Officer VP and General Counsel SVP, Chief Marketing Officer, Omni-Channel and Public Relations SVP, Chief Stores Officer SVP, Chief Human Resources Officer President and CEO President and CEO Corporate Controller EVP, HR VP, Controller, Chief Accounting Officer and Assistant Secretary VP, Chief Brand and Communications Officer VP, Direct-to-Consumer SVP, HR VP, HR and Information Technology VP, General Council and Secretary VP, HR VP and CIO EVP, HR EVP and President, Global Food & Beverage and Healthcare President and CEO VP, Healthcare Policy and Reimbursement VP, Clinical, Regulatory and Quality SVP, Research SVP, HR EVP and Chief Marketing Officer Interim CFO, Controller, and Chief Accounting Officer EVP, HR and Director CFO SVP, External Relations and President, General Mills Foundation SVP, HR VP, Corporate Controller and Information Systems VP, General Counsel and Secretary VP, Asia Pacific VP, HR VP, Global Operations SVP, Americas Adhesives VP, Quality and Support VP, CFO, and Treasurer SVP, HMN Financial, Inc. and Home Federal Savings Bank Group VP and President Consumer Products Sales EVP and CFO SVP, External Affairs and General Counsel VP, HR and Corporate Communications CEO EVP and CFO SVP and Chief HR Officer CFO SVP, HR SVP, General Counsel, Chief Compliance Officer and Corporate Secretary VP, COO and Corporate Secretary VP and CFO SVP and General Counsel

Company Patterson Cos., Inc. Patterson Cos., Inc. Pentair PLC Pentair PLC Piper Jaffray Cos. Piper Jaffray Cos. Polaris Industries, Inc. Proto Labs, Inc. Regis Corp.

Regis Corp.

Select Comfort Corp.

Select Comfort Corp.

Select Comfort Corp.

Select Comfort Corp.

Silver Bay Realty Trust Corp.

Silver Bay Realty Trust Corp.

SPS Commerce, Inc. St. Jude Medical, Inc. St. Jude Medical, Inc. Sunshine Heart, Inc. Sunshine Heart, Inc. Supervalu, Inc. Supervalu, Inc. Target Corp.

Target Corp.

Target Corp.

Target Corp.

Target Corp.

TCF Financial Corp.

TCF Financial Corp.

TCF Financial Corp.

Tennant Co. Tennant Co. Tile Shop Holdings, Inc. Toro Co. Toro Co. Toro Co. U.S. Bancorp U.S. Bancorp U.S. Bancorp U.S. Bancorp UnitedHealth Group, Inc. UnitedHealth Group, Inc. Vascular Solutions, Inc. Winmark Corp.

Xcel Energy, Inc.

Executive Officer Ann B. Gugino Kelly A. Baker Angela D. Lageson Beth A. Wozniak Christine N. Esckilsen Debbra L. Schoneman Stacy L. Bogart Victoria M. Holt Heather L. Passe Carmen Thiede Melissa Barra Annie L. Bloomquist Patricia A. Dirks Shelly R. Ibach Christine Battist Julie M. Ellis Kimberly K. Nelson Lisa M. Andrade Rachel H. Ellingson Claudia Drayton Molly Wade Susan S. Grafton Karla C. Robertson Stephanie A. Lundquist Janna A. Potts Jacqueline Hourigan Rice Cathy R. Smith Laysha L. Ward Susan D. Bode Tamara K. Schuette Barbara E. Shaw Carol E. McKnight Heidi M. Wilson Lynda Stout Judy L. Altmaier Amy E. Dahl Renee J. Peterson Jennie P. Carlson Leslie V. Godridge Katherine B. Quinn Kathleen A. Rogers Marianne D. Short D. Ellen Wilson Carrie Powers Leah A. Goff Judy M. Poferl

Title EVP, CFO and Treasurer Chief HR Officer SVP, General Counsel and Secretary President, Flow & Filtration Solutions Global Business Unit Chief Human Capital Officer CFO VP, General Counsel and Secretary President, CEO and Director SVP and Chief Marketing Officer SVP, Chief HR Officer SVP and Chief Strategy and Customer Relationship Officer SVP and Chief Product Officer SVP and Chief Human Capital Officer President and CEO CFO and Treasurer Chief Accounting Officer EVP and CFO VP, Chief Marketing Officer VP, Corporate Strategy CFO and Secretary VP, Worldwide Patient Recruitment and Marketing SVP, Finance and Chief Accounting Officer EVP, General Counsel and Corporate Secretary EVP and Chief HR Officer EVP and Chief Stores Officer SVP, Chief Risk and Compliance Officer EVP and CFO EVP and Chief Corporate Social Responsibility Officer SVP and Chief Accounting Officer SVP and Corporate Controller SVP and Director Corporate HR SVP, Global HR SVP, General Counsel and Secretary SVP, Retail Stores VP, Exmark VP, HR VP, Treasurer and CFO EVP, HR Vice Chairman, Wholesale Banking EVP, Chief Strategy and Reputation Officer Vice Chairman and CFO EVP and Chief Legal Officer EVP, Human Capital SVP, Marketing VP, HR SVP, Corporate Secretary and Executive Services

THE FOLLOWING 23 COMPANIES HAVE ONLY MEN AS EXECUTIVE OFFICERS (Section 16(b)) • ANI Pharmaceuticals, Inc. • ATRM Holdings, Inc. • BioAmber, Inc. • Canterbury Park Holding Corp.

• Cardiovascular Systems, Inc. • Cogentix Medical, Inc. • CyberOptics Corp. • Electro-Sensors, Inc. • Famous Dave's of America, Inc. • GWG Holdings, Inc. • Ikonics Corp. • Image Sensing Systems, Inc. • Imation Corp. • IntriCon Corp. • MGC Diagnostics Corp. • Northern Oil and Gas, Inc. • Northern Technologies International Corp. • NVE Corp. • Otter Tail Corp. • Qumu Corp.

• Surmodics, Inc. • Valspar Corp. • WSI Industries, Inc.

stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2017

13

CORPORATE DIRECTORS AND EXECUTIVE OFFICERS (Based on SEC Filings as of June 30, 2016) Corporate Directors

Executive Officers Percent Women Directors

Net Change from 2015

Total Executive Officers

Women Executive Officers

2

16.7%

0

16

3

18.8%

1

3

30.0%

0

7

1

14.3%

0

8

3

37.5%

0

12

2

16.7%

0

7

0

0.0%

0

4

0

0.0%

-1

10

2

20.0%

1

5

1

20.0%

0

3

0

0.0%

0

5

1

20.0%

0

Arctic Cat, Inc.

7

2

28.6%

1

8

1

12.5%

1

ATRM Holdings, Inc.

5

0

0.0%

0

2

0

0.0%

0

Best Buy Co., Inc.

10

4

40.0%

2

9

4

44.4%

1

BioAmber, Inc.

7

1

14.3%

0

5

0

0.0%

-1

Total Directors

Women Directors

3M Co.

12

Allete, Inc.

10

Ameriprise Financial, Inc. ANI Pharmaceuticals, Inc. Apogee Enterprises, Inc. Appliance Recycling Centers of America, Inc.

Company Name

Percent Women Executive Officers

Net Change from 2015

Bio-Techne Corp.

9

1

11.1%

0

8

1

12.5%

0

Buffalo Wild Wings, Inc.

8

2

25.0%

0

8

4

50.0%

-1

C.H. Robinson Worldwide, Inc.

8

2

25.0%

-1

11

1

9.1%

0

Canterbury Park Holding Corp.

6

1

16.7%

0

5

0

0.0%

-1

Capella Education Co.

11

2

18.2%

0

4

1

25.0%

0

Cardiovascular Systems, Inc.

7

1

14.3%

0

4

0

0.0%

0

Christopher & Banks Corp.

7

3

42.9%

-1

7

4

57.1%

-1

Clearfield, Inc.

5

1

20.0%

0

3

1

33.3%

0

Cogentix Medical, Inc.

5

1

20.0%

0

2

0

0.0%

0

Communications Systems, Inc.

6

1

16.7%

0

7

1

14.3%

0

CyberOptics Corp.

5

1

20.0%

0

2

0

0.0%

0

Datalink Corp.

7

1

14.3%

0

5

2

40.0%

0

Deluxe Corp.

10

2

20.0%

0

10

3

30.0%

0

Digi International, Inc.

6

0

0.0%

0

8

1

12.5%

0

Donaldson Co., Inc.

10

1

10.0%

0

7

3

42.9%

0

Ecolab, Inc.

15

4

26.7%

0

14

2

14.3%

-1

Electromed, Inc.

6

2

33.3%

0

2

1

50.0%

0

Electro-Sensors, Inc.

5

0

0.0%

0

1

0

0.0%

0

Entellus Medical, Inc.

7

0

0.0%

0

10

2

20.0%

0

Enteromedics, Inc.

8

1

12.5%

0

8

1

12.5%

1

Evine Live, Inc.

6

1

16.7%

1

7

2

28.6%

-1

Famous Dave's of America, Inc.

7

0

0.0%

0

4

0

0.0%

0

Fastenal Co.

10

2

20.0%

0

11

2

18.2%

0

G&K Services, Inc.

9

2

22.2%

0

5

1

20.0%

0

General Mills, Inc.

15

4

26.7%

-1

11

2

18.2%

1

Graco, Inc.

9

2

22.2%

1

14

2

14.3%

0

GWG Holdings, Inc.

7

0

0.0%

0

6

0

0.0%

0

H.B. Fuller Co.

9

2

22.2%

0

10

4

40.0%

0

Hawkins, Inc.

9

1

11.1%

0

8

2

25.0%

0

HMN Financial, Inc.

9

2

22.2%

0

4

1

25.0%

0

Hormel Foods Corp.

15

4

26.7%

0

18

3

16.7%

0

Hutchinson Technology, Inc.

7

1

14.3%

0

5

1

20.0%

0

Ikonics Corp.

8

1

12.5%

0

5

0

0.0%

0

Image Sensing Systems, Inc.

4

1

25.0%

0

2

0

0.0%

0

Imation Corp.

7

1

14.3%

1

4

0

0.0%

0

Insignia Systems, Inc.

6

0

0.0%

0

2

1

50.0%

1

IntriCon Corp.

6

0

0.0%

0

5

0

0.0%

0

Medtronic PLC

13

4

30.8%

0

10

2

20.0%

1

MGC Diagnostics Corp.

6

1

16.7%

0

3

0

0.0%

0

Mocon, Inc.

8

1

12.5%

0

3

1

33.3%

0

Mosaic Co.

11

2

18.2%

0

8

1

12.5%

0

MTS Systems Corp.

8

2

25.0%

-1

5

1

20.0%

0

New Ulm Telecom, Inc.

7

2

28.6%

0

3

1

33.3%

0

Nortech Systems, Inc.

8

1

12.5%

0

3

1

33.3%

0

Northern Oil and Gas, Inc.

6

1

16.7%

0

4

0

0.0%

0

14

APRIL 2017 MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP

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St. Catherine University would like to thank the following sponsors of the 2016 Minnesota Census of Women in Corporate Leadership:

REPORT PRODUCED BY:

ST. CATHERINE UNIVERSITY A dynamic university educating women 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 baccalaureate college for women in the nation and offers a range of graduate and associate programs for women and men. stkate.edu

Corporate Directors

Executive Officers Percent Women Directors

Net Change from 2015

Total Executive Officers

Women Executive Officers

Percent Women Executive Officers

Net Change from 2015

1

14.3%

0

2

0

0.0%

0

1

20.0%

0

2

0

0.0%

0

10

1

10.0%

0

6

1

16.7%

0

Otter Tail Corp.

9

3

33.3%

0

5

0

0.0%

0

Patterson Cos., Inc.

8

3

37.5%

0

5

2

40.0%

0

Pentair PLC

12

2

16.7%

0

7

2

28.6%

1

Piper Jaffray Cos.

9

2

22.2%

0

11

2

18.2%

1

Polaris Industries, Inc.

8

2

25.0%

1

9

1

11.1%

0

Proto Labs, Inc.

7

1

14.3%

0

5

1

20.0%

-1

Qumu Corp.

7

1

14.3%

0

2

0

0.0%

0

Regis Corp.

8

1

12.5%

1

7

2

28.6%

0

Select Comfort Corp.

10

5

50.0%

2

10

4

40.0%

-1

Silver Bay Realty Trust Corp.

7

1

14.3%

0

6

2

33.3%

1

SPS Commerce, Inc.

7

1

14.3%

1

3

1

33.3%

0

St. Jude Medical, Inc.

10

2

20.0%

0

17

2

11.8%

0

Sunshine Heart, Inc.

5

0

0.0%

0

4

2

50.0%

-1

Supervalu, Inc.

11

2

18.2%

2

10

2

20.0%

-2

Surmodics, Inc.

6

1

16.7%

0

7

0

0.0%

-1

Target Corp.

14

5

35.7%

2

13

5

38.5%

0

TCF Financial Corp.

15

2

13.3%

1

13

3

23.1%

0

Tennant Co.

9

2

22.2%

0

8

2

25.0%

0

Tile Shop Holdings, Inc.

7

0

0.0%

0

5

1

20.0%

1

Toro Co.

11

2

18.2%

0

13

3

23.1%

0

U.S. Bancorp

14

4

28.6%

1

15

4

26.7%

1

UnitedHealth Group, Inc.

10

2

20.0%

0

7

2

28.6%

0

Valspar Corp.

11

2

18.2%

0

5

0

0.0%

0

Vascular Solutions, Inc.

7

0

0.0%

0

6

1

16.7%

-1

Winmark Corp.

8

1

12.5%

0

6

1

16.7%

0

WSI Industries, Inc.

6

0

0.0%

0

2

0

0.0%

0

Xcel Energy, Inc.

11

3

27.3%

0

12

1

8.3%

-1

Total Directors

Women Directors

Northern Technology International Corp.

7

NVE Corp.

5

OneBeacon Insurance Group Ltd.

Company Name

Methodology The 2016 Minnesota Census of Women in Corporate Leadership examines the percentage of women in leadership roles at the 85 largest publicly held companies headquartered in Minnesota, as ranked by 2015 net revenue in the Minneapolis Star Tribune 100: 25th Annual Report (May 2016) and the Minneapolis/St. Paul Business Journal Top 75 Public Companies list (March 2016).

Excluded from the list are closely held companies, cooperatives, fraternal benefits organizations, and over-the-counter stocks.

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

Data for the 2016 Minnesota Census was collected from company filings with the SEC, including proxy statements (DEF 14A), annual

reports (Form 10-K), and current reports (Form 8-K). Accessed online through EDGAR, the most recent SEC filings through June 30, 2016, 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, 2016. The company response rate was 51 percent. Changes that occurred in board membership, executive officer appointments, company ownership or bankruptcy filings after the period covered by the June 30, 2016, filings are not reflected in this analysis.

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

All reasonable steps have been taken to verify the accuracy of the data. Any remaining errors or omissions are the sole responsibility of the researchers.

Joann Bangs, Ph.D. Associate professor, Department of Economics; Dean, School of Business and Professional Studies, St. Catherine University Rebecca Hawthorne, Ph.D. Associate professor and program director, Master of Arts in Organizational Leadership, St. Catherine University Thank You Valerie Krech, MAOL program coordinator Laura McGlauchlen, administrative assistant, School of Business and Professional Studies

stkate.edu MINNESOTA CENSUS OF WOMEN IN CORPORATE LEADERSHIP APRIL 2017

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