WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY Madrid, IE Business School, February 18th, 2014

Marijo Bos, President PWN Global Rose-Marie Losier, President PWN Madrid

Background

The story

Spotlight on

WE BELIEVE PWN SHOULD PLAY A ROLE

There are variations in wage gaps up to 20% in some sectors

(E)PWN Paris initiated the Women & Money survey and we saw that it would make sense to launch it big in Spain and take a stronger position

WOMEN WERE ENTHUSIATIC ABOUT MONEY TALK

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1%

1%

1% 1%

1% 2% 2%

2%

3%

3%

4%

4%

5%

5%

7%

8% 9%

10%

29%

Denmark

Sweden

No reponse

Other

Turkey

Poland

Ireland

Austria

Belgium

Romania

Norway

UK

Portugal

Germany

Switzerland

Spain

Italy

Netherlands

France

A first surprise:

3500 members

823 questionnaires

Response rate 24%

Background

The story

Spotlight on

Despite carrying a large

financial responsibility,

highly educated working

women in Spain take a

passive approach to

managing their current and

future finances.

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Cards on the Table

DREAMS IN PROGRESS

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28%

19%

13%

6%

Earn more money Voluntary work Travel Artistic activities

Dreams of independence

Towards children

from parents

Money management

Saving / Security / For rainy days 24% 26% Careful planning and adjusting 24% 19% Stay out of debts 12% 12% Plan retirement 14% 2%

Invest early in property, in a house at your first job, 12% Total 86% 59%

Independance independance / freedom 37% 16%

Take distance Enjoy life / Be yourself 12% 6%

Money is a mean, not a goal /can't buy happiness 14% 6%

Total 26% 12%

The way to money Work hard / work to deserve money 28% 9% Education 11% 3%

Total 39% 12%

The way to money Working experience

Develop your career 22%

Manage your salary (ask for more, negotiate) 16%

Total 38%

Find balance between work and family 24%

Learn to manage and place your money, learn accounting 20%

WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

Profile of respondents

> 44% (47%)* are between 41 and 50 years old, 29% (33%) between 31 and 40

> Average age is 42

> 48% are women living with a partner and two children

> 71% have at least university and postgraduate studies

> Business and management (40%), science (24%), law and finance (23%) or liberal arts (13%)

> 86% work full time

> +60% (55%) work for a large company, 26% (33%) are entrepreneurs, 10% unemployed

> 41% (55%) cumulate between 11 and 20 years of experience, 34% (30%) between 21 and 30 years

Solid academic footing and economically sound

*Spain figures in brackets

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Spotlight on

Background

The story

WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

Professional commitment

> 80% think success is essentially linked to a professional career enabled by higher education

> Meritocratic values push women in professional life

> Work means first and above all independence (74%), next an opportunity for development (62%), of a necessity in life (56%). Pleasure only comes in 4th position (42%)

> 93% (75%) feel they do not spend enough time with their families

> 52% (43%) earn higher salaries than their partner

High investment in higher education and in their careers

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WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

Work environment favorable for men

• Only 37% (48%) think that women and men are treated with equality in the companies they are working in

• The further away from HR processes (training, recruitment, work/life balance...) and closer to management process linked to power the higher the inequalities are.

• Men are favored in terms of career management (60% - 49%), pay increases (61%) and career advancement (76%-63%)

• Work/life balance is, ironically, the only domain where women feel they are slightly better taken into consideration (23%-31%), which enables them to continue to lead their double days! Implicitly this position contributes to preventing men from taking a stronger involvement in their home and family lives.

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WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

Weak reaction to questions linked to remuneration

• 75% (83%) are not satisfied with their remuneration, although being privileged women, both by their studies and their professional experience

• 69% (81%) do not speak about their salary with friends

• 66% do not ask for pay raises

• 60% find it difficult to ask for a pay raise

• 49% do not feel well-armed to negotiate their salary

• 38% (30%) do not know if their salary is equivalent to that of a male

The ´´model student complex´´ I worked hard at school, I perform well in my company, I expect someone to notice my efforts and reward me with a raise

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WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

A strong commitment to personal finance

> 91% know how much income taxes they pay

> 90% know their revenues (fixed salary, variable salary, bonus etc.) within 5000 euros

> 90% own their own assets (personal savings for 71% (69%), a personal retirement plan for 59 % (69%), real estate for 53% ( 49%))

> 80 % fill in their tax forms, alone or with their partner

> 71 % (84%) share a joint account for household expenses

However, 67% do not know what income to expect when retiring and only 42% are actively preparing for retirement

Can this paradox be explained by their overall relationship with money?

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WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

The relationship with money: a complex subject but managed rationally

• 54% have a hard time talking about money as it relates to their personal finances, and the rate increases to 70% at work.

• Respondents define money functionally: for 85% (95%), it means security or else a means to achieve an end or objective for 64%.

• Only a third link money to values such as recognition (39%-42%), power (29%-27%) or energy (23%-18%).

As a mirror effect, the top fear concerning money is lack of security (46%-43%), not being able to reimburse debts (21%-24%) and unemployment (17%). Only 12% declare that they have no fears concerning money.

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WOMEN & MONEY, BETWEEN CONTROL & COMPLEXITY

Money as security, a value received as a family heritage to be transmitted to children

• “what did your family teach you?” 59% of respondents spontaneously cite sound money management (savings and security 26%, financial planning 19%, and refusal to be indebted 12%).

• Some more liberal families transmitted notions of independence and liberty (16%) or keeping one’s distance from money 12% (enjoy life, money is just a means and not an end)

• “advice that they wish to transmit to their own children?” Sound management arrives in first place (86% ) with two new categories compared to their parents: retirement and real estate.

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CONCLUSIONS

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« The best way to fulf i l l your dreams is to

wake up »

Paul Valéry