Women CEOs Reach New Heights
This week, we talk about how a record number of women are now chief executives of Fortune 500 companies, but there is still a long way to go.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button and please share with your friends!
Hi, Dieter! This year has been especially tough for working women. The United Nations warns that the pandemic could set back economic progress for a generation of women. That’s why advancing women in the workplace has also been on the minds of many business leaders. The recent appointment of Lauren Hobart as the new chief executive of U.S. retailer Dick’s Sporting Goods Inc. is an example of change at the highest level.
Her appointment brings the number of women running Fortune 500 companies to a record 41. That represents a milestone for women trying to break through the proverbial glass ceiling.
Still, that is a relatively small number considering women make up 46% of the total labor force in the U.S., according to the World Bank.
One trend we see is that many female CEOs are in the retail industry, which has 10. Other women running retail chains include Kohl’s Corp.’s Michelle Gass, Rite Aid Corp.’s Heyward Donigan and Karen Lynch, who was appointed as CEO of CVS Health Corp. in November.
Executive recruiters say that women lead retailers more often partly because of the technological and competitive disruptions the industry faced over the last decade. These changes have helped women earn the top job without having to necessarily follow the traditional path that requires chief merchandising experience.
But there have also been CEO appointments at companies in other industries recently. Don’t forget Jane Fraser at U.S. bank Citigroup Inc. and Linda Rendle at household-supplies producer Clorox Co.
Markets are also pushing for change. This week, the Nasdaq proposed requiring the more than 3,000 companies listed on its stock exchange to have at least one woman on their boards, in addition to a director from an underrepresented minority or one who is lesbian, gay, bisexual or transgender. Companies that don’t meet the standard would have to explain why.
If and when the SEC gives approval, companies would have one year to begin reporting on the rule. Technology companies are by far the most common listing on the Nasdaq so we will keep an eye on how they react. Speaking of markets, appetite for certain risky exchange-traded funds spiked during this year’s wild ride.
Investors put more than $14 billion in leveraged and inverse ETFs in March and April alone, according to Morningstar. These funds offer a chance to double or triple daily returns. One example is the ProShares UltraPro QQQ ETF, the biggest leveraged ETF by assets at $8.6 billion. It triples the daily return of an index that tracks the performance of the top 100 Nasdaq stocks and has doubled in value over the past six months.
What am I looking at? The chart above shows the performance of the ProShares UltraPro QQQ ETF compared to the Nasdaq 100 Index from late May to late November.
But these ETFs can burn investors when returns drop and there are concerns people don’t fully understand the products, which are designed to be held for just trading day but are often held for months or even years. Big fund managers, like BlackRock, Vanguard and Invesco, don’t offer them.
Still, you can see why these eye-popping returns could draw investors. We will see what the next year brings when it comes to riskier funds.
Share your thoughts below, email us or catch us on Twitter. Your words could appear in our next edition! Have a great week and remember to wash your hands. 👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com@dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com@sardonmaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com@CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com@violian.tammy