1) Setting the Stage - Diversity the Missing Piece
Moderator
Betty Yee, California State Controller
Panelists
Jul ia Dawson, Managing Director, Credit Suisse
Janet Liang, Ch ief Operating Officer, Kaiser Foundation Health Plan Inc.,
Kaiser Permanente Northern California
Cel ia Pohani Huber, Director, McKinsey & Company
#CalPERSDiversity
2) Overview of US Workforce Diversity
Diversity of executive management team1
Percent of companies by percent diversity
Population
Percent, 2012
38
Gender
diversity
50.8%
49.2%
Men
22
13
16
9
Women
1
0%
Non-white2
Racial/
ethnic
diversity
68
1 to 10%
11 to 20%
21 to 30%
41 to 50%
2
1
31 to 40%
41 to 50%
45
32
23
23
7
White2
31 to 40%
0%
1 to 10%
11 to 20%
1 Number of companies …
2 Undocumented labour force, largely Latino, estimated at 6-8 million (Bloomberg, Pew) has not been included in the breakdown
21 to 30%
3) CalPERS Investment Manager and Consultant Survey
Two or more /
Other Minority
(2.8%)
Hispanic (4.7%)
Native
American
(0.2%)
Workforce By Race
Black (4.8%)
By Gender
Asian (15.3%)
Caucasian
(72.2%)
100%
50%
0%
Source: CalPERS Investment Manager and Consultant Survey
Men
58%
Wome
n 42%
4) CalPERS Investment Manager and Consultant Survey
Key Positions by Race/Ethnicity
Associates
Managers
Executives
86.3%
75.4%
67.8%
32.2%
24.6%
13.7%
Caucasian
Source: CalPERS Investment Manager and Consultant Survey
Minority
5) CalPERS Investment Manager and Consultant Survey
Key Positions by Gender
Associates
Managers
Executives
79.6%
63.9%
54.8%
45.2%
36.1%
20.4%
Men
Source: CalPERS Investment Manager and Consultant Survey
Women
6) Kaiser Permanente’s Workforce Diversity
Other
Minority
(2.4%)
Workforce By Race
Black
(13.2%)
Hispanic
(18.0%)
Caucasian
(40.2%)
By Gender
100.0%
Asian
(26.3%)
Source: Kaiser Permanente
50.0%
0.0%
Men
24.5%
Women
75.5%
7) Kaiser Permanente’s Workforce Diversity (continued)
Key Positions by Race/Ethnicity
Staff
Managers
Executives
72.7%
56.7%
61.3%
43.3%
38.7%
27.3%
Caucasian
Source: Kaiser Permanente
Minority
8) Kaiser Permanente’s Workforce Diversity (continued)
Key Positions by Gender
Staff
Managers
Executives
76.4%
67.4%
52.8%
47.2%
32.6%
23.6%
Men
Source: Kaiser Permanente
Women
9) Diversity’s Dividend
Likelihood of above-median financial performance relative to
national industry, by diversity quartile
58
54
+15%
47
+35%
43
More likely to
over perform
Q4
Q1
Gender Diversity
Q4
More likely
to over
perform
Q1
Ethnic Diversity
SOURCE: McKinsey Diversity Database, Based on dataset of 366 companies; diversity figures of 2013 and financial performance measured as Average EBIT 2010 to 2013
10) Do women make a difference for companies?1
Return on Equity (%)
CEO and
Operations
CEO
20.0
20.0
15.2
10.0
11.9
10.0
20.0
15.1
11.9
0.0
0.0
Senior
Management
10.0
14.7
9.7
0.0
1Represents data
Female
Women < 5%
Women < 10%
Women > 10%
Male
Women > 15%
from approximately 3,000 companies across neutral sectors in 2013-14
Source: Credit Suisse
11) Return on Equity (%) by Industry
40
35
30
25
20
15
10
5
0
Women <10%
Women >15%
Source: Credit Suisse
12) Women on Boards (WBO)
Outperformance within the MSCI ACWI index (companies > $10bn mkt cap)
Source: Credit Suisse, Bloomberg