Sallie Krawcheck strives to close the gender pay gap with Ellevest
Ellevest changes the lives of women by helping them invest, save, learn and earn more at work.
Photo courtesy of Ellevest
“These days it’s not uncommon for me to walk through an airport or down the street with my Ellevest bag in my hand and get pulled over by a woman asking, ‘Oh, are you with Ellevest?’ And then tell me that I changed her life, ”says Sallie Krawcheck, CEO and co-founder of Ellevest.
Helping change the lives of women is both Krawchek’s mission and inspiration. From CEOs of Merrill Lynch Wealth Management to being known as “the most powerful woman on Wall Street,” Krawcheck has realized that women need more help investing their money. She explains that money is generally the main source of stress for women from all socio-economic backgrounds and saw an opportunity to help others learn the basics of investing and build their confidence for the future. .
“It was a series of ‘aha!’ moments for me that started one morning when I was putting on my mascara, ”says Krawcheck. “The retirement savings crisis is a women’s crisis, and I started to think about ways to be part of the solution.
Since she launched Ellevest in 2014, she has been working hard to help close the gender wealth gap. Most of the investors in the company are women, and 75 percent of its employees are also women who help others invest, save, learn and earn more on the job.
“His [through] talking to women and hearing what motivates them and does not motivate them to invest we have learned that almost no woman aims to outperform the market, ”says Krawcheck. “But when you start telling them that their money can pay off and make an impact, that’s when you start to see [them] go from cold to hot to “I’m ready to move.” “
What is the result ? Krawcheck knows that women will not be fully equal to men until they are financially equal with them. Many companies are working to close the pay gap, but Ellevest is unique in its approach. “To my knowledge, Ellevest is the only one of the modern financial services or fintech companies that takes gender into account when building an investment portfolio,” Krawcheck said.
The algorithms used by Ellevest personalize the portfolios taking into consideration the best information to support the different investment plans of women.
“When you create a retirement portfolio, if you assume that an individual is ‘average’, it doesn’t matter if you’re male, but damn if you’re female or a non-binary individual,” Krawcheck explains. . “That’s because women and non-binary people tend to earn less, their wages peak 15 years earlier, they take more career breaks, and they die later. So, the result here is a real problem; people might run out of money, but certainly experience less or full retirement.
With that in mind, Krawcheck built the Intentional Impact portfolio. It removes businesses that hurt women financially by using a variety of data sources and metrics to choose which businesses to invest in or divest from.
Ellevest strives to build a valuable business that inspires the desire to build wealth. What Krawcheck finds particularly exciting, however, is the company’s ability to change lives.
“Because we have defined our mission to be to put more money in the hands of women, there are a lot of opportunities for us,” she says. By engaging with and helping more women, Ellevest and Krawcheck are able to make strides towards making positive change for women.
It’s these women – the ones who stop Krawcheck at the airport and on the streets and the people who came together to build Ellevest – who represent the real victories here.
“What almost makes me cry is when you get the support of people like Melinda Gates and Venus Williams and bring together mission-aligned individuals and businesses to do something big,” Krawcheck said. “They invest their money and give advice, and it gives me chills to think about the big ripple effect we can and are having on the lives of women.”