Sandra Navidi - SuperHubs - How the Financial Elite and Their Networks Rule our World

Male employees also tend to have more direct and better relationships with their bosses. And if a man takes credit for a woman’s work, higher-ups will often naturally believe him, especially if the work product is excellent. Then there is the phenomenon of “mansplaining”—when a man condescendingly explains something to a woman that she is much more knowledgeable about. That happens to me frequently, and although being talked down to is humiliating, there really is not much one can do without appearing snappish. A charming example of “mansplaining” is Jamie Dimon’s comment on Elizabeth Warren’s expertise: “I don’t know if she fully understands the global banking system,” notwithstanding the fact that the senator is a former Harvard bankruptcy law professor, the architect of the Consumer Financial Protection Bureau, and chair of the government panel that oversaw the Troubled Asset Relief Program during the crisis.23

THE WAGE GAP: SELLING WOMEN SHORT

The difference in attitude and perception is also one of the main reasons for the persistent pay gap. This discrepancy is less prevalent on the highest executive levels. But on the way up, women, although often better educated and more accomplished, on average are still paid 20 percent less than their male counterparts. Part of the reason for the wage gap is the “ask gap.” Whereas men have been conditioned to promote themselves, women are reluctant to negotiate; when they do, they often get penalized, making them even less likely to try again. The enduring societal stereotype is still that women should be kind, considerate, and caring. When they violate that norm by speaking out for themselves, they are perceived as aggressive. Sheryl Sandberg has appealed to women’s personal responsibility to “lean in,” and while she certainly has a point, public policy and institutions must also fundamentally change before the system can be remedied.

The ask gap is deeply ingrained, even on the CEO level: Satya Nadella, CEO of Microsoft, said in 2014 that women who do not ask for raises create “good karma” for themselves.24 Those are the women he would trust and to whom he would give more responsibility. In other words, if you ask for a raise, you are not to be trusted. As shocking as this statement may be, Nadella only verbalized what many executives probably still believe but know better politically than to say in public. It does not help that women often hold self-limiting behaviors and beliefs. Since they are treated differently and have a harder time rising through the ranks, they often suffer from poor confidence. When successful, many feel they just got lucky or—worse—like imposters, while men tend to ascribe their successes to their exceptional ability.25

THE FAILURE GAP: DEMOTING PROMOTIONS

There is only one area where women are favored: When the financial industry tanks and the workforce must be reduced, it is “ladies first.”26 However, while women are often the first ones to receive the axe in a downturn, the cases in which they are actually promoted are usually a curse in disguise and a setup for failure. Michelle Ryan, an associate professor of psychology at Exeter University, coined the term “glass cliff” to describe the phenomenon of women being promoted in times of crisis. Dangerous leadership positions in dangerous times are no-win proposi-tions.27 Christine Lagarde has firsthand experience in sorting out messes: She became the first female chairman of Baker & McKenzie, the world’s largest law firm, when it was a “complete mess,” and she was chosen to take the helm at the IMF after her predecessor Dominique Strauss-Kahn resigned amidst a sordid sex scandal. She agrees that “women often end up in charge to sort things out when everything goes wrong.”28

Activist male investors like Kyle Bass and Nelson Peltz have joined something of a trend in attacking women-led companies. Research demonstrates that female CEOs are perceived as less capable than their male counterparts and that the IPOs of women-led companies are considered less attractive investments. The subconscious bias may be that women are softer targets and less likely to fight back.29

THE MENTORING GAP: MISSING OUT ON MENTORING

Men also have the benefit of being mentored by other men in positions of power. They schmooze with their bosses during golf outings, sports events, and nights out. Ina Drew, former chief investment officer at JPMorgan and one of the banking sector’s highest-ranking and longest-serving women, explained that the paucity of female executives results in part from a lack of corporate mentorship: “If women remain unfulfilled by their positions without the potential for growth and discouraged by male aggression, the discrepancies will persist.”30

Credit is due to Sheryl Sandberg for breaking the taboo: professional mentoring develops according to the rules of homophily. Men often gravitate toward sponsoring younger men to whom they relate more naturally.31 In contrast, they shy away from mentoring women for fear of gossip. An executive can go for a beer at a sports bar with his male subordinate after work, but doing the same with a young woman might have the appearance of a date.32 A few years ago at a formal event, I was seated at the head table next to a well-known CEO of a global financial firm. As the evening progressed and he had ingested a few glasses of wine, he blurted out, “My God, you are so smart, but if I hired you, everyone would think we had an affair.” I was terribly embarrassed for him and kept the anecdote to myself.

THE SEXISM GAP: THE WOLVES OF WALL STREET ON THE PROWL

Next to career and pay discrimination, sexual discrimination based on appearance is still more prevalent than one would think. Women do not just act differently; they look different. In contrast to men, they must give their appearance much more consideration. While a certain level of attractiveness is expedient, they should not be too alluring. Hence, they must wear their hair conservatively and apply moderate makeup. Clothes cannot be too formfitting, low-cut, or short. As a deterrent, some women resort to wearing baggy clothes, glasses, and wedding bands even though they are not married. I was once asked by a human resource professional if I could not be persuaded to color my hair a darker color. “You would have so much of an easier time,” she sighed. In a male-managed, male dominated, and homogeneous culture, drawing too much attention creates resistance. Women are continuously judged on their looks, whereas men are not.

Stricter internal policies have only made discrimination subtler and even harder to fight. According to a survey by the Financial Times, one in two female fund management staff has been subjected to regular harassment or sexist behavior in the office.33 Fifty-four percent of women say they have encountered “inappropriate” conduct in the workplace. Speaking up is generally taboo, and one risks being shamed with character attacks and branded a tattletale and a liability. Also, being viewed as a victim is a total career-killer. Once a woman admits to sexual harassment, it can be hard to shed the “victim” image, which undermines power, promotes a perception of weakness, and makes it virtually impossible to obtain high-level leadership positions.34

Most recently, Goldman Sachs has been in the news with a suit that alleges a pattern of discrimination against female associates. It accuses the bank of a macho culture in which the marginalization of women was endorsed and males received preferential and disproportionate promotions and pay.35 Many financial institutions settle lawsuits with multimillion-dollar payouts to avoid publicity-ridden trials that would uncover other injustices, such as lower compensation for the same type, amount, and success of work.36 At the time of the book’s completion the lawsuit was still ongoing.