Why Arjuna Capital's Natasha Lamb Is a Force in Pay Equity Push
As of International Women's Day, seven financial companies acquiesced this year to Arjuna's shareholder proposals requesting that they report their gender pay gap.
The Street article, “Why Arjuna Capital's Natasha Lamb Is a Force in Pay Equity Push," quoted Russell Reynolds Associates Consultant Robert Voth about the growing momentum for companies to move toward pay equality. The article is excerpted below.
Just in time for International Women's Day, American Express Co. (AXP) agreed this week to disclose the pay differences between their men and women by the end of 2018, becoming the seventh financial company this year to adopt such a proposal following pressure from Boston-based investment company Arjuna Capital.
The catalyst for this change is "simply momentum," said Robert Voth, who co-leads executive firm Russell Reynolds Associates' Consumer and Commercial Financial Services Practice. "This will catch fire across all industries."
Still, focusing just on the numbers misses the greater issue, Voth said.
"Wholesale and evolutionary change will come from hiring female executives one and two down [from the C-Suite/Board level] and missing that opportunity to ensure a robust pipeline is a massive fail," Voth said.
Voth said outdated evaluations are restricting companies from establishing a robust pipeline of female talent.
"Legacy leadership evaluations fall far short of current demands," said Voth. "The characteristics of leadership evaluations were formed decades ago based upon a static view of leadership that was made to select, not develop, and therein lies the issue. Hiring executives must free themselves from outdated assessment and allow themselves to hire upon both quiet and loud attributes."
To read the full article, click here.