Today is March 8International Womens Day.
Its observance was formalized by the United Nations back in 1975. The day intends to honor the social, economic, cultural, and political achievements of women. And also a day that marks a call to action for accelerating gender parity. For IWD 2023, the global theme is #EmbraceEquity.
In the world of finance, theres been some progress regarding women in CFO roles. For example, last year, women made up 16.3% of CFOs at Fortune 500 and S&P 500 companies, based on an analysis by the firm Crist Kolder Associates of more than 650 C-suite executives. Thats an increase from 6.3% back in 2004 when the firm began tracking the data. But theres more work to do.
To encourage the next generation of women finance leaders, I asked several women whove reached the CFO chair: Looking back, what advice do you wish you could have given your younger self?
Heres what they said.
Gina Mastantuono, CFO at ServiceNow: The number one thing I would tell my younger self is that growth and comfort do not coexist. You have to put yourself out there in the small ways and the big ways. Dont be afraid to speak up in those meetings. Build connections at those networking events. And raise your hand for an assignment that stretches your capabilities. You have to tell people what you think, what you want, and what youre capable ofand thats going to be scary. But the more you do it, the more your confidence grows. And be comfortable zig-zagging a bit from your original path. Opportunities can come from anywhere. When I graduated college, I never imagined, as a woman, that being a CFO was possible. I got there by pushing the envelope and getting outside my comfort zone. Being okay with discomfort and taking smart risks is the key.
Diana Saadeh-Jajeh, CFO at GameStop: When I began my career, I would often focus on the little things and miss the big picture. Having a mentor earlier in my career journey would have been very advantageous. Instead, I had my first mentor when I was much more established in my career. Id tell my younger self dont compare yourself to others but evaluate what youre capable of doing as a professional and understand the value you bring to a company. And knowing the value of really understanding the business is also important. If youre in retail, go out to the stores. If youre in manufacturing, go out to the manufacturing site. Understand what the field is doing, what the customers want, and how the company differentiates itself among its competitors.
Alka Tandan, CFO at Gainsight: Id tell my younger self three thingsFirst, build your personal board of directors. Better than trying to find one person that has it all, find experts for different parts of your life that you can tap for guidance. Second, work will take up the majority of your lifes hours so pick a career that really works for you. Start by identifying the intersection between what you enjoy, how you want to spend your days, and what youre good at. Whatever you pick must tick all three boxes. For instance, I knew I loved numbers and I enjoyed telling storiestoday I have the opportunity to tell the financial story for Gainsight every day. Lastly, be brave and honest with yourself. Achieving the above will take a great deal of self-reflection. At the end of the day, you want to be your own biggest cheerleader as well as understand where you want to grow, so its a great skill for CFOs and every exec.
Tiffany Mason, CFO at Driven Brands, Inc.: My guidance would be not to limit yourself. If you are overly prescriptive or ridged around your career path, you can self-impose a ceiling on who you can become. By being open to opportunities, investing in yourself, and embracing a willingness to stretch your capabilities, you will grow beyond any vision you have for yourself today. We as people and professionals learn the most when we are most uncomfortable. Your ability to adapt and resolution to succeed will set you apart, but only if you have the courage to take the opportunities in front of you. Have the confidence and conviction to know you can succeed and the humbleness and gratitude for those that help you reach your full potential.
Heres to women!
Sheryl Estrada
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Big deal
Change in the Climate, a report by PwC and Workiva (NYSE: WK), gauges how U.S. business leaders are preparing for the SECs Climate Disclosure Rule. The survey found that 85% of executives are concerned their company does not have the right technology in place, despite 97% anticipating technology playing an important role in meeting potential new requirements. And 61% business executives believe the rule will cost their company more than $750,000 in the first year of compliance.
The top action business leaders have taken in anticipation of the disclosure rule is nvesting in ESG reporting tech (40%). Other actions taken include accelerating climate ambition timelines (35%), and hiring new employees to oversee ESG reporting (33%), The survey also found that 70% of business leaders said their companies will proceed with compliance regardless of when the rule becomes U.S. law. The findings are based on a survey of 300 senior-level decision makers with knowledge or responsibility for ESG reporting at U.S.-based public companies with at least $500 million in annual revenue.
Going deeper
Close the Gender Gap to Unlock Productivity Gains, a report by Moody's Analytics, focuses on one dimension of the gender gapthe proportion of women in senior and middle management positions. "This proportion lags men by a significant margin across the globe," according to the report.
Leaderboard
Blake Jorgensen, EVP and CFO at PayPal Holdings, Inc., will step down from his role, effective immediately, the company disclosed in a March 7 SEC filing. Jorgensen will remain at PayPal as a senior advisor through Sept. 15. "Jorgensens decision does not reflect any dispute or disagreement with the company," according to the filing. Gabrielle Rabinovitch will continue to serve as acting CFO and SVP of investor relations and treasurer.
Tiffany R. Smith was promoted to CFO at Lulus Fashion Lounge Holdings, Inc. ((Nasdaq: LVLU), effective immediately. Smith succeeds Crystal Landsem, who assumed the CEO role, as previously announced. Smith has served as Lulus VP of finance since April 2021. Before joining Lulus, she held senior finance and controller roles for retailers including Fashion Nova, Hot Topic, and Nordstrom. Smith also worked at Deloitte & Touche LLP in audit and enterprise risk, which was preceded by several years in management roles in accounting and finance in non-retail industries.
Overheard
"Ensuring that we can have career plans for women, not just in support functions, but on the business side, making sure we rotate the roles faster, which tend to be occupied by men."
Santanders Executive Chair Ana Botin told CNBC regarding steps that financial institutions can take to make sure that women can obtain top roles in the sector.
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