By Joann S. Lublin
Women represent the strongest internal contenders for the corner
office at a small but growing number of major U.S. companies. Their
ultimate success could produce an unprecedented number of female
chief executives.
Consider Patricia Stitzel, promoted to president and chief
operating officer of Tupperware Brands Corp. in October. "Her next
title will be CEO," said E.V. "Rick" Goings, veteran chief
executive of the maker of colorful food storage containers. "I am
ready when she is ready."
More senior female officers may win inside races to lead their
employer. They are front-runners at retailers Kohl's Corp. and
Abercrombie & Fitch Co. Other potential CEOs-to-be include the
highest-ranking women at Verizon Communications Inc., Southern Co.
and Aetna Inc. All declined to comment.
Women were president or chief operating officer of 13 S&P
500 companies when their 2016 proxy statements appeared -- up from
nine as of their 2006 proxies, concluded an exclusive study for The
Wall Street Journal by researchers Equilar Inc.
Women frequently advance to run companies where they have a long
track record. Nearly all of the 15 women appointed CEO at S&P
500 companies between 2012 and fall 2016 ascended internally,
according to an exclusive analysis by recruiters Spencer
Stuart.
Such executives often gained critical management roles with
profit-and-loss duties after excelling early. But, leadership
specialists say, women can't always count on fair assessments
during internal CEO succession contests -- partly because of subtle
gender bias about their competence.
In choosing a new chief, "companies are more willing to take a
risk on a man than a woman with a similar experience set,"
explained Amy Hayes, a senior consultant in the global leadership
and succession practice at recruiters Russell Reynolds Associates
Inc. "Aspiring female CEOs must have had success multiple times to
win that ultimate promotion."
Some women prevail. Michele Buck, Hershey Co.'s No. 2 executive
since June, gets the reins of the candy maker this March. She will
be the 27th woman to head a Fortune 500 business.
Two executives on Equilar's 2016 tally also became the first
women to steer their employers. Vicki Hollub heads Occidental
Petroleum Corp., a large energy concern. Adena Friedman runs
exchange operator Nasdaq Inc., where she began as an intern.
Ms. Stitzel had an equally modest debut at Tupperware. Hired as
a human-resources professional in 1997, she was named HR director
for the U.S. the following year.
The fast-rising manager landed her first profit-and-loss
position in 2007, overseeing Tupperware's beauty-product operations
for four European countries. Seven years later, Mr. Goings elevated
the then-area vice president to group president of the
Americas.
The move represented a big jump for Ms. Stitzel. Some senior
executives pushed back, Mr. Goings remembered. They asked, "'Is
this a bridge too far?"'
But Mr. Goings viewed her promotion as a worthwhile risk. Under
her leadership, the Americas "outperformed every other area of the
world" in revenue and profit, he recalled.
Nowadays, the 71-year-old Tupperware chief believes his highest
deputy must demonstrate her operational expertise on a global scale
before she can oversee an enterprise that sells in more than 100
nations.
"She is getting some real battlefield seasoning," Mr. Goings
observed. "Seasoning just takes time." Ms. Stitzel said she's
"really focused on being a great COO."
Women competing internally for chief executive typically spend
more time campaigning for the role than men, said Jeffery Tobias
Halter, president of YWomen, a corporate gender consultancy.
"Research shows that men are often promoted on potential and that
women are promoted on actual results."
Kohl's presently exemplifies this pattern. Internal finalists
are Michelle Gass, chief merchandising and customer officer, and
COO Sona Chawla.
Ms. Gass joined in 2013 after 16 years at Starbucks Corp. Ms.
Chawla came to Kohl's in 2015 from Walgreens Boots Alliance Inc.
CEO Kevin Mansell considers them "the most likely candidates" to
succeed him because "they both are incredible leaders," he
said.
But both women lack general merchandise experience and still
"have a lot to learn," Mr. Mansell added. The 64-year-old executive
has commanded Kohl's since 2008. Directors haven't set a retirement
timetable.
The board likely will recruit an outside CEO if Kohl's doesn't
deliver stronger financial results by late 2017, someone close to
the company predicted. Kohl's recently warned of lackluster holiday
results.
At Verizon, however, even a pivotal role in a troubled
acquisition seems unlikely to topple longtime executive Marni
Walden from its short list of eventual successors for 62-year-old
chief Lowell McAdam.
Ms. Walden, who oversees strategic development, new businesses
and product innovation, was a key player in Verizon's pending
acquisition of Yahoo Inc.'s core assets. Verizon is reassessing the
deal due to Yahoo's latest disclosure of a security breach.
Ms. Walden remains "in the running" for CEO because nobody will
blame her if that deal collapses, one person familiar with Verizon
noted.
Write to Joann S. Lublin at joann.lublin@wsj.com
(END) Dow Jones Newswires
January 17, 2017 10:14 ET (15:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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