"When Victoria's Secret reported stellar quarterly results last week, shares shot up 14% and likely gave Hillary Super some breathing room from the activist investors pushing the lingerie company to, among other things, consider whether the CEO of 16 months is up to the task of turning it around. Of course, the potential of having to deal with an activist investor's campaign goes with the territory of being a CEO, especially at a company that has been struggling."
"But Super's saga is a reminder that women CEOs remain much likelier than their male counterparts to be targeted by activist investors. This year, according to a report last week by the Conference Board, women have made up 8% of the CEOs in the Russell 3000 index but accounted for 15% of activist campaigns specifically targeting chief executives. Other women to have recently confronted activists: Cracker Barrel's Julie Masino, who survived a campaign, and Vail Resorts' Kirsten Lynch, who did not."
"What makes the Conference Board report especially frustrating is that it adds more proof points to an old, seemingly intractable trend. In 2015, the New York Times' DealBook pondered "Do Activist Investors Target Female CEOs?" while Fortune's Pattie Sellers asked "Does Nelson Peltz have a problem with women?" In 2017, Harvard Law School found that women CEOs had almost a 50% higher probability than men of becoming the target of shareholder activism."
Victoria's Secret's strong quarterly results temporarily eased pressure on CEO Hillary Super from activist investors questioning her ability to lead a turnaround. Women held 8% of CEOs in the Russell 3000 but accounted for 15% of activist campaigns targeting chief executives this year, according to the Conference Board. Recent female targets include Julie Masino of Cracker Barrel and Kirsten Lynch of Vail Resorts. Historical analyses show women face higher probabilities of activism, possibly due to stereotypes of cooperativeness, glass cliff placements, and bias. Conference Board data indicates women face similar firing odds whether performance improves, unlike men.
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