AET Aetna Inc. (delisted)

There are strong internal female candidates to lead Tupperware, Kohl's, Verizon and Abercrombie & Fitch

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 28th 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 18, 2017 02:48 ET (07:48 GMT)

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