MCCA® 2007 Survey of Fortune 500 Women General Counsel

Profiles

Michelle Banks, Gap Inc.
Senior Vice President and General Counsel

Sandra Leung, Bristol-Myers Squibb Company
Senior Vice President and General Counsel

Teri Plummer McClure, UPS
Senior Vice President, General Counsel, and Corporate Secretary

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MCCA’s survey of the 2007 Fortune 500 and 1000 companies¹ reveals a continuing trend of growth and upward mobility for women general counsel in the Fortune 500. Although the actual number of women general counsel may not be increasing by “leaps and bounds,” this year’s survey seems to reveal a trend in staying power; women are climbing along with their companies in the rankings, and most are staying there. MCCA research also illustrates significant diversity among Fortune 1000 companies with women general counsel in terms of the industries they represent, as well as the geographic regions they occupy. Finally, this report highlights the success of two companies that demonstrate their commitment to the ideals of diversity practices.

This year, 90 companies in this prestigious ranking have women serving as their top lawyers. That figure reflects an increase of nine women general counsel from the 2006 survey, and an increase of 15 from 2005. Eighteen women are new to the Fortune 500 General Counsel list, with all but one replacing male counterparts. The sole exception, industrial metals wholesaler Ryerson Inc., demonstrated its continued dedication to diversity in this area by electing M. Louise Turilli to replace retiring general counsel Joyce E. Mims. Mims, general counsel of Ryerson Inc., since 1999, was at the helm when the company climbed from the Fortune 1000 into the Fortune 500 for the first time.

Sandra Leung at Bristol-Myers Squibb (see profile) is the only non-Caucasian woman new to the 2007 list, and is the first Asian American woman to attain general counsel status at a Fortune 500 corporation. And in a three-person job-sharing arrangement at Blockbuster, Lou Jones remains the last woman standing after the departures of colleagues Judy Norris and Bryan Perchersky.

This high-powered corporate legal roster consists of 84 Caucasian (93.4 percent), three African American (3.3 percent), one Asian (1.1 percent), and one Hispanic (1.1 percent) women general counsel. One woman declined to confirm her race. By comparison, last year’s list was comprised of 75 Caucasian (90.4 percent), five African American (6.0 percent), and one Hispanic (1.2 percent) women general counsel. No Asian American/Pacific Islander women general counsel appeared in the Fortune 500 for 2006.

Far greater diversity is demonstrated in terms of the types of companies that are represented by women general counsel. As in past years, financial services and insurance firms are strongly represented, but the range of other companies cuts across the economic landscape. They include industries in the areas of energy, delivery services, transportation, cosmetics, food, restaurants, retail clothing, chemicals, pharmaceuticals, hospitals, paper, hotels, airlines, housing, and entertainment. The 91 industry leaders that made the list are based throughout the United States; however, New York and Texas are the corporate homes to companies with the most women general counsel (12 in each state). Runners-up are New Jersey with eight, and California and Illinois with seven each.

This year’s Fortune 500 companies demonstrated mostly strong growth in 2006, with increased revenues and profits. Energy and financial corporations enjoyed some of the greatest success over the year. Taken together, the companies on the Fortune 500 with women general counsel amassed total revenues in excess of $1.49 trillion. In the previous report, total revenues for 82 companies in the same category topped $1.29 trillion. Profits for the companies listed in 2007 were $10.4 billion, as compared to last year’s report, where combined profits equaled $8.7 billion.

The vast majority of companies (65.5 percent) with women general counsel had revenues between $5 billion and $19 billion. Companies with profits exceeding $20 billion (21.1 percent) significantly outnumbered those with profits of less than $5 billion (13.3 percent). In this year’s survey, 39 women serve as general counsel of the highest-grossing Fortune 250 companies-five more than in 2006.

Of special note, seven women general counsel work for Fortune 500 companies that are among the fastest growing in revenues in the past year. They are Elizabeth Abdoo of Host Hotels & Resorts, Storrow Gordon of Electronic Data Systems, Susan Bettman of R.R. Donnelley & Sons, Helen Pudlin of PNC Financial Services Group, Margaret Shannon of BJ Services, Marcy Smorey-Giger of Wesco International, and Esta E. Stecher of the Goldman Sachs Group.

Fortune 500 Departures

Six women general counsel who left Fortune 500 companies were replaced by men (Hewlett-Packard, J.P. Morgan Chase & Co., Apple Computers, Inc., Calpine Corporation, Anadarko Petroleum, and BorgWarner). Reasons for the departures varied, according to company statements and press accounts. ² Ann Baskins of Hewlett-Packard resigned from her job in September 2007 in the wake of the company’s high-profile spying scandal. Joan Guggenheimer of J.P. Morgan died in July 2006. Nancy Heinen left Apple Computers, Inc., after serving as general counsel for nine years. At Calpine Corporation, Nancy Murray had been serving as interim general counsel, and remains as senior vice president after the appointment of a permanent general counsel.

Hilary Krane, general counsel of Levi Strauss, continues as general counsel, but is now listed among the Fortune 501-1000 women general counsel. Also moved to the Fortune 1000 portion of the list is Jennifer Pileggi of Con-way (formerly CNF Inc.). And, as already mentioned, at Ryerson Inc., M. Louise Turilli was elected to replace retiring general counsel Joyce E. Mims.

See MCCA® LIST OF WOMEN GENERAL COUNSEL AT FORTUNE 500 COMPANIES

Fortune 501-1000

Unlike the top 500, survey results for women general counsel in the Fortune 1000 showed a slight decrease in existing positions and new appointments. Seventy women general counsel comprise this group, down from the 74 reported last year.

Seventeen new names appeared on this portion of the survey, with two women replacing other women. These new women general counsel broke through to the Fortune 1000 in a variety of ways. ³ As mentioned, two companies with women general counsel dropped from the Fortune 500 to the latter half of the report in this year’s survey. Four women were promoted in-house after having served at their respective companies for a number of years. Another four moved laterally from general counsel or associate general counsel positions at other companies. One moved from a law firm. Five of these new general counsel were at the legal helm when their companies moved to the Fortune 1000 list this year.

Industries represented on the Fortune 1000 run the gamut, including utilities, financial services, retail, high-tech, health care, and restaurants.

Fortune 1000 women general counsel work in companies throughout the United States. New York tops the list (11), with California coming in second (eight). Relatively high numbers of women general counsel are also found in Ohio (six), Florida (four), New Jersey (four), and Texas (four). Two top women legal officers at Fortune 1000 companies also work in Hawaii and Puerto Rico.

The Fortune 1000 group presents a slightly greater picture of diversity than does the Fortune 500, with one African American, one Chinese American, one Hispanic, and one Hawaiian women general counsel. By race, percentages for the 2007 group break down to 92.9 percent Caucasian, 2.9 percent Asian American/Pacific Islander, 1.4 percent African American, and 1.4 percent Hispanic. One woman declined to confirm her race.

This year’s survey revealed that 18 women had dropped off the Fortune 1000 list since last year’s ranking. This figure represents almost the same rate of departure as last year, but different reasons may be discerned for their moves. Among those women who left this category, four (Elizabeth Abdoo of Host Hotels & Resorts, Rachel Seifert of Community Health Systems, Kay Rustand of Reliance Steel & Aluminum, and Margaret Shannon of BJ Services) rose with their companies up to the Fortune 500 list. Only four departing women general counsel were replaced by men, as opposed to 10 last year. In two instances, the woman general counsel retired; in one case, the position remained unfilled as of press time. The two women replaced by women were Kathryn Vanderwist, who was replaced by Rita Thomas at Agilysys, and Diana Daniels, who retired from The Washington Post and was replaced by Veronica Dillon. Additionally, as this article went to press, MCCA learned that Lisa Iglesias had left Spherion, Inc. A permanent replacement general counsel at that company had not been named at press time.

Eight companies appearing on the 2006 Fortune 1000 list with women general counsel dropped off the list completely: Sports Authority, True Value Company, PETCO, Perkin Elmer, Inc., CSK Auto Corporation, Timberland, Domino’s Pizza, Inc., and XO Communications, Inc. In each case, these women general counsel have continued in their positions with their respective companies.

See MCCA® LIST OF WOMEN GENERAL COUNSEL AT FORTUNE 501–1000 COMPANIES

Encouraging Trends and Corporate Success

The findings from MCCA’s 2007 survey of women general counsel reveal trends that, overall, are encouraging for women general counsel. Women lawyers at the helm of their companies’ legal departments experienced yet another year of growth. They are established in locations throughout the continental United States, as well as in Hawaii and Puerto Rico, and have expertise in a wide array of industries. Although there were slightly more departures this year on the Fortune 1000 list, a number of those departures occurred because women moved with companies that had become more successful. One might conclude that these women general counsel had a pivotal role in those successes.

On the Fortune 500’s “Quick Climber” list of companies that have advanced 250 places or more over the past 10 years, ⁴ two-Washington Mutual, Inc., and Valero Energy Corporation-are represented by women general counsel.

Washington Mutual, Inc., has moved up a stunning 317 places from its ranking as number 398 in 1997. The company now ranks 81st among the 2007 Fortune 500. Fay L. Chapman, senior executive vice president, and chief legal officer for Washington Mutual, Inc., joined the company as executive vice president and general counsel in August 1997, the year the company’s climb began. She was promoted to senior executive vice president and general counsel in June 1999.

Washington Mutual, Inc., based in Seattle, Wash., provides thrift banking services. The company offers financial, mortgage, and commercial financial services to consumers and small- to mid-sized businesses. It operates in about 2,400 offices, has annual revenue of about $17 billion, and employs approximately 53,000 people.

Valero Energy Corporation, one of the largest refiners in North America, is currently ranked 16th on the Fortune 500, having moved up 271 positions from its 287 ranking in 1997. Kim Bowers serves as senior vice president and general counsel for Valero Energy Corporation. Although Bowers was not appointed general counsel until 2006, she joined Valero in 1997 and served as lead attorney for all the company’s major acquisitions during that span, including six petroleum refineries in the United States and Aruba. She also managed many legal aspects of Valero’s $6 billion acquisition of Ultramar Diamond Shamrock in 2001.

See MCCA® 2007 FORTUNE 500 Women General Counsel, by Industry and by Race

See MCCA® 2007 FORTUNE 501–1000 Women General Counsel, by Industry and by Race

Linking Business Success and A Commitment to Diversity: Two Examples

In addition to enjoying their strong gains on the Fortune 500 list over the past year, two companies in particular have been active players in recent years in advancing the cause of diversity.

Merrill Lynch’s ranking rose from 34 in 2006 to 22 this year. Four years ago, Rosemary Berkery, the company’s executive vice president and general counsel, presided over “Affirmative Action: A View From Wall Street,” a seminar that focused on recent landmark U.S. Supreme Court decisions and their implications for corporate America. Leading experts from law, business school, and nonprofit legal defense organizations participated in the symposium before an audience of employment lawyers, senior human resources managers, senior diversity officers, executive search firms, and Merrill Lynch employees at the company’s world headquarters. In a press release from Merrill Lynch, Ms. Berkery noted, “We wanted to delve into the analysis on the case and explore what the real impact is on the financial services industry and our diverse population of employees. At Merrill Lynch, we seek diversity in our employee population not only as the right thing to do, but as essential to competing in the global marketplace.” ⁵ Ms. Berkery’s commitment to diversity in the workplace obviously has paid dividends in the marketplace.

In another example, The Hilton Hotels Corporation moved up the Fortune 500 list from 464 to 296 in the past year. Madeleine A. Kleiner, the company’s general counsel, was presented with the Association of Corporate Counsel’s annual Mathew J. Whitehead diversity award in 2003. ⁶ The award recognizes outstanding commitment and leadership in supporting a more diverse culture inside the legal department, as well as in firms representing corporate clients, and in generally enhancing the diversity of the legal profession.

According to the Association of Corporate Counsel in 2003, of the 22 attorneys employed within The Hilton Hotels Corporation’s Legal Department headed by Kleiner, five were people of color and 13 were women. The department also formalized a plan to increase the number of minorities and women attorneys working on its legal matters. Pursuant to the plan, the department required outside counsel to provide data on the amount of Hilton services performed by women and minorities. The most diverse firms gained “preferred firm” status, giving them priority for new Hilton legal work. Additionally, the department maintained a database of women- and minority-owned firms, from which it considered at least one firm when assigning significant new legal matters. The Hilton Hotels Corporation Legal Department publicized its diversity best practices to local and national bar associations.

These two examples illustrate how diversity practices and business success have gone hand in hand-particularly when implemented with the strong commitment of a general counsel. DB

See Diversity & the Bar Leading Law Firms for Women Equity Partners

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NOTES

1. The term “Fortune 1000” refers to companies ranked among Fortune’s 501-1000 companies.
2. MCCA could not confirm explanations for the departures from Anadarko Petroleum and BorgWarner through published sources.
3. MCCA could not confirm the career path for two of the new arrivals on the Fortune 1000 list through published sources.
4. See http://money.cnn.com/magazines/-fortune/fortune500/2007/climbers.
5. See http://www.ml.com/?id=7695_7696_8149_8688_8570_5862 (August 8, 2003).
6. See http://acc.com/php/cms/index.php?id=34&action=item&item_id=20031030_4926.

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From the July/August 2007 issue of  Diversity & The Bar^®