Happy Friday, Broadsheet readers! Today, in an exclusive interview, we talk with Sallie Krawcheck about the Tinder sexual harassment case, alleged gender discrimination at Goldman Sachs and more.
• Angela Ahrendts scores big EU win. The European Union ruled on Thursday that Apple can register the layout of its stores as a trademark. The decision benefits Angela Ahrendts, Apple’s SVP of retail and online stores and the former CEO of Burberry, as she plans her first design decisions in the new position.
• Hillary Clinton’s book sales get trumped by enemy. “Blood Feud,” a recently-published sensational account of the Clintons and the Obamas written by a longtime critic of both families, is beating Hillary’s memoir “Hard Choices” on the best-seller list. The facts in the book are reported to be dubious at best, but readers don’t seem to care, providing a powerful statement about what it takes to succeed in today’s publishing world.
IN THE HEADLINES
• Birchbox founders think outside the box. The beauty e-commerce and subscription box company started by HBS graduates Hayley Barna and Katia Beauchamp, is going brick-and-mortar. Today, Birchbox fans in New York can head down to SoHo and shop in the company’s first retail store. As traditional retailers fight to earn more revenue online, it’s interesting to note — and likely a competitive advantage — that Birchbox is moving in the reverse.
• Goldman Sachs managing director challenges myths about women bankers. At the Foreign Correspondents Club of Japan on Wednesday, Goldman Sachs exec Kathy Matsui gave her take on some of the assumptions that are preventing Japanese women from advancing in the workplace. Matsui is firm believer that women are leaving the workplace because their careers are not satisfying, not because of other factors like availability of child care.
• Bank of Montreal pushes for more female advisors. We all know that there is a dearth of women in finance, (just see what Sallie Krawcheck says below), but the Bank of Montreal is actually doing something about it. They are launching a targeted campaign, with an accompanying website to beef up their staff of female advisers. Just 16% of BMO’s investment advisers are women. What is really shocking is that in 2012 only 1% of their advisors were female.
Sallie Krawcheck: The Tinder case reminds me of Wall St. in the ’80s
Every Friday, The Broadview will include edited excerpts from an interview with a woman in Fortune’s Most Powerful Women community. Today, we talk with Sallie Krawcheck, the founder of Ellevate Network, a global professional women’s network that invests in women. Previously, Krawcheck was one of the most powerful woman on Wall Street and served as president of Bank of America’s Global Wealth & Investment Management division. Long before that, she was a student at the University of North Carolina at Chapel Hill. As a proud graduate of Duke University, I tried not to hold that against her.
Caroline Fairchild: What was your reaction to Goldman Sachs news that the female employees wants to expand their gender discrimination lawsuit to class action?
Sallie Krawcheck: Goldman has always been a high quality firm. But I don’t know the principles involved. That being said, the industry remains male oriented. Males are in the majority. The numbers have actually gone backwards over time. That doesn’t have to lead to an environment that leads to a lawsuit, but it is notable.
CF: Are you surprised that these types of cases are still going on in 2014?
SK: I was surprised in 1989 and I was surprised in 1992 and 1994 and even after that. You know what, I am also surprised that these firms continue to have their investment banking analysts work all night and on the weekends. That feels to me like something that should have changed.
CF: Your new venture hopes to spark female interest in investing. What’s keeping them from it?
SK: Women are more risk-averse than men.
Is that all it is?
SK: Women don’t want to learn about [investing] because in a way, it is like learning about how the engine of a car works when all they want to do is get from point A to point B. Some how as an industry, we delude the clients with all sorts of minutiae and jargon about the products. If we did that to you when you went to buy a car, you would never buy a car. You would just want to get out of there.
CF: What are your thoughts on the sexual harassment case coming out of Tinder?
SK: Only knowing what one reads in the newspaper, it is vaguely reminiscent of what was going on at Wall Street in the 1980s. A young, go-go industry with a lot of money sloshing around and a lot of young people in it and people only beginning to learn how to conduct themselves in a business setting. You do get a lot of women thrown out and I think it has to do with business and maturity… This kind of behavior is like everyone is still at college at a frat party gone bad.
CF: Speaking of the news, how do you read the news everyday?
SK: I remember picking up the Wall Street Journal on my way to work and reading it at my desk with a cup of coffee. It’s completely different these days. I have a list of websites that I cycle through. It’s Business Insider, the Wall Street Journal, then DealBook, then the Washington Post and your new website. I’ll check Business Insider 10 times a day and Twitter 20 times a day. I never sit down to read the paper anymore unless it’s Saturday or Sunday anymore.
Sallie, I wanted to tell you that I’m a huge Duke basketball fan.
Now I know that this is between us, I know this article will be completely slanted. (Laughs) That rivalry gives me more joy. I just was thinking the other day about the few times in life when I screamed out in joy. In life you don’t scream in joy a lot. But every time that I can remember that I screamed in joy, two out of the four have been because of that rivalry.
IN CASE YOU MISSED IT
• Men make more money then women… even when (legally) insider-trading. A new study discovers that men earn a higher return than women when selling stocks of their own companies. Why? The researchers noted that men may have stronger at-work networks than do women, leading to an information advantage when it comes to deciding to buy and sell.
• Madeleine Albright tweets at Amy Poehler. The first female Secretary of State’s still got it. Albright, apparently a Parks & Recreation fan, took to Twitter yesterday to congratulate Amy Poehler on her Emmy nomination. “Congrats Amy Poehler on your #EmmysNoms! Can you get this to our mutual friend at @parksandrecnbc?,” she wrote. Who’s the friend? Amy Poehler’s character on Parks & Rec, Leslie Knope, has an obsession with Albright.
WHAT I'M READING
|Models are a business, and they have to treat themselves as a business. Which means they have to take care of themselves and give up all the young joys.|
|-- Eileen Ford, the woman who set a standard in the beauty industry and started the careers of Jane Fonda, Candice Bergen and others, died wednesday . Known for her stern demeanor and keen eye for talent, the iconic Ford also was a businesswoman at heart.|