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- <text id=93TT2141>
- <title>
- Aug. 30, 1993: The Board vs. the "Babe"
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1993
- Aug. 30, 1993 Dave Letterman
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- CIVIL RIGHTS, Page 39
- The Board vs. the "Babe"
- </hdr>
- <body>
- <p>A businesswoman's sex-bias lawsuit takes aim at a new target:
- the top ranks of corporate America
- </p>
- <p>By JOHN GREENWALD--With reporting by Dan Cray/Los Angeles, Julie Johnson/Washington and
- William McWhirter/Chicago
- </p>
- <p> Nita Heckendorn seemed to be a rare exception: the woman who
- would never run into the "glass ceiling" that blocks female
- executives from reaching the top levels of American business.
- From the day she joined the global operator of hospitals known
- as National Medical Enterprises in 1980, she moved quickly through
- the male-dominated ranks. By the age of 47, she had done so
- well in her role as strategic planner that she was promoted
- to executive vice president and a director at the corporation,
- which has more than 48,000 employees and sales of $3.8 billion.
- Last year Heckendorn set her sights on the last big step: she
- aggressively sought the job of chief executive, a post that
- fewer than half a dozen women have reached at America's 500
- largest corporations.
- </p>
- <p> It would never happen. Heckendorn, now 50, says she finally
- ran into a high-level gauntlet of sexual harassment and discrimination.
- In a lawsuit filed last week, she accuses one male director
- of repeatedly calling her "babe" and another of inviting her
- to sit on his lap at a board meeting. Heckendorn, who claims
- she was passed over for the top job solely because she is a
- woman, is demanding $15 million in damages. "This is a way to
- seek a remedy and, hopefully, vindication," she says. National
- Medical, which is based in Santa Monica, California, denied
- the charges and vowed to fight the suit "vigorously."
- </p>
- <p> Regardless of how it is settled, Heckendorn's complaint could
- encourage similar challenges by high-ranking women who believe
- they have been wrongfully passed over. While women have brought
- record numbers of sexual harassment and bias suits in the past
- year, the pinnacles of corporate power have remained virtually
- all-male aeries untroubled by female challenges. "It's very
- unusual to have a suit at this level, although I've been approached
- by a number of highly placed executive women who have been harassed
- by a CEO or someone of equally high rank," says Ellen Bravo,
- executive director of 9to5, National Association of Working
- Women. "Typically those women take a settlement and get out
- because it's just too messy and they fear that in speaking out
- their career will be destroyed."
- </p>
- <p> Heckendorn, a native of Valencia, Spain, lost the CEO race last
- spring during a management shakeup at National Medical, a troubled
- behemoth that faces $750 million in lawsuits for allegedly overbilling
- insurance companies. While Heckendorn claims to have been the
- handpicked successor of Richard Eamer, a co-founder of the firm
- who stepped aside in the shuffle, the top job went instead to
- Jeffrey Barbakow, a National Medical director and former executive
- of the securities firm Donaldson, Lufkin & Jenrette. According
- to Heckendorn's suit, influential board members rebelled at
- the thought of a female CEO and called the idea crazy. After
- taking over, Barbakow ousted Heckendorn from the board as part
- of a move to reduce the number of inside directors.
- </p>
- <p> The new CEO contends that Heckendorn's ouster was unrelated
- to her gender. "You look at most of today's boards, and they
- are all going in the same direction, where they are comprised
- essentially of outside directors," says Barbakow. Bernice Bratter,
- a counseling center director who was the first woman from outside
- National Medical to gain a seat on its board, disputes Heckendorn's
- account of old-boyism among the directors. "I just don't know
- what she's referring to," Bratter says. "I've had a wonderful
- experience being on this board. I've been treated politely and
- with respect, and have been included in everything."
- </p>
- <p> Despite the new openness in discussing the issue, sexual bias
- and harassment remain an entrenched fact of life at many U.S.
- companies. In a recent poll of 439 female executives, the recruiting
- firm Korn-Ferry found that 60% had been sexually harassed during
- their careers.
- </p>
- <p> Besides litigation, one seemingly effective remedy for such
- behavior is diversity in the ranks. Ann Hopkins, who won her
- battle to become a partner at the Price Waterhouse accounting
- firm with the help of a landmark discrimination case that reached
- the Supreme Court in 1989, now supervises a professional staff
- made up of 45% women. "None of us would put up with anything,"
- she says.
- </p>
- <p> For Heckendorn, there is no relief just yet. Her abrupt firing
- after 12 years at the company has left her devastated, she says.
- Returning to work after filing her complaint, Heckendorn found
- that her key no longer opened her office door. "The senior vice
- president of human resources came up and unlocked it for me,"
- she recalls. "Then he gave me a box and stood there while I
- packed up my things. When he asked if there was anything else
- of mine that belonged to the company, I said, `Yes, my heart
- and soul.'"
- </p>
-
- </body>
- </article>
- </text>
-
-