Case 2.2 - California Credit Life Insurance Group 1.

Case 2.2

California Credit Life Insurance Group 1.

Case Summary

Although the company name is fictitious, the events described in the CCLI case are based on actual events experienced by

salespeople of both sexes. Numerous former and present students have provided examples of the problems faced by women in

selling positions. In addition, a sizable number of articles that discuss these issues can be found in the Journal of Marketing,

Journal of Personal Selling & Sales Management, Sales & Marketing Management, Business Marketing, and other

publications.

Diane Flanagan, vice president of Human Resources, at California Credit Life Insurance Company, has learned that Suzette

Renoldi has filed a sexual discrimination suit against James Bradford, CCLI area sales manager. Apparently, Bradford refused to

transfer Renoldi to a larger territory as a result of her unwillingness to entertain clients, especially men, which he feels has

contributed to her decline in sales. Previously, Flanagan had encouraged Ilse Riebolt, a former sales rep, to bring harassment charges

against Bradford but the sales rep declined to take action.

Flanagan's first step was to secure data on sales performance, quotas, expenses, salaries, commissions, and performance

reviews for all reps in Bradford's territory. She also obtained job satisfaction data for the company and Bradford's territory.

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Case 2.2 - California Credit Life Insurance Group 1.

Flanagan knew that CCLI would be named a co-defendant in the case. Regardless of the outcome of the case, she wanted to

take steps to avoid future problems. To help in this regard, she reviewed several related studies involving focus group interviews

with men and women. She also reviewed verbatim comments from selected participants that had been collected from the focus

group interviews.
1.
A more detailed analysis of the data appears in the case notes provided by Avery M. Abernethy, Auburn University. This analysis

begins at the end of this note.

Teaching Objectives

This case will allow students the opportunity to:

1. Learn about the problems faced by women and men in business selling situations;

2. Review the available evidence and identify other types of needed information; and

3. Identify programs that CCLI should adopt to avoid future problems.

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Case 2.2 - California Credit Life Insurance Group 1.

Teaching Suggestions

Normally this case generates considerable discussion. It is useful to first discuss the broader issues and then discuss the Bradford

situation. Students can be asked to review the literature on women in selling as part of the case assignment. To add realism to the

case discussion, it is useful to have as a guest speaker an expert in sexual discrimination suits.

A more detailed analysis of the data appears in the case notes provided by Avery M. Abernethy, Auburn University. This

analysis begins at the end of this note.

Discussion Questions

1. What problems do women face in business-to-business selling?

The case identifies several problem areas as revealed by the focus group interviews. These same interviews also contain clues as to

what actions companies may take to avoid or at least alleviate some of the problems.

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Case 2.2 - California Credit Life Insurance Group 1.

The problems may be grouped into the following categories:

Sexual stereotyping by peers, customers, and women themselves;

Overnight travel and customer entertaining;

Compensation and other rewards;

Sexual harassment; and

Performance evaluation.

Many saleswomen who work in a traditionally male preserve have to overcome skepticism and a patronizing attitude from

other employees and customers. Some saleswomen may feel that they lack the skills necessary for success. Others feel that they are

not taken seriously or that they must work twice as hard as men to prove themselves.

In heavily male-dominated industries, women may face the tokenism problem. The following comments are typical:

"Oh yeah, you're the token female. The only reason you're here is because Uncle Sam says we have to have a girl."

"The only reason you're making more calls is that your customers are curious, they're eager to see what you look like."

"We'll do business with your company, but don't send a girl to do a man's job."

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Case 2.2 - California Credit Life Insurance Group 1.

As the case suggests, overnight travel and customer entertaining have been problem areas not only for women but in some

situations, for men as well. Excessive travel for both sexes can be a burden on family relationships. Saleswomen confront unique

problems in such areas as eating and drinking. Many women take their meals in their rooms to avoid unwanted attention from male

diners. One saleswoman said it is difficult to unwind in a hotel bar after a long day due to the image associated with a lone woman

drinking in a bar.

Customer entertaining involving the opposite sex can be a problem for both men and women. As more and more women

enter male-dominated professions, it is highly likely that salesmen will find their customers to be women; the entertainment process

changes rather dramatically.

A common dining problem involves who is going to pay the bill. Another problem concerns the form of entertainment: a

round of golf, an afternoon at the baseball game, or a weekend fishing trip.

According to several studies, pay discrimination in selling does not seem to be a major problem. Starting salaries are

equivalent although future pay increases provide an opportunity to discriminate. Not promoting female sales reps because of their

sex may be discriminatory, however. If women lack promotional opportunities, their overall compensation levels may be lower.

Other financial and nonfinancial rewards may appeal more to men than to women. Sales contests often have male-type

awards, e.g., win a trip to the Super Bowl. One company presents a massive ring to recognize achievement, a gift that may not

appeal to women.

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Case 2.2 - California Credit Life Insurance Group 1.

Sexual harassment, as described in the case, has always been a problem and will continue to be an issue not only in sales but in

all types of occupations. Saleswomen confront this issue with their co-workers and customers. Much has been said about this

subject although discussion about how to reduce the problem has been limited.

Problems in performance evaluation and the day-to-day interactions with sales managers is another area of concern.

Saleswomen complain that they do not get enough feedback from their managers. Sometimes, sales managers try so hard to be fair

and understanding that they unwittingly discriminate by not providing deserved feedback on job performance. Some male sales

managers have indicated that they feel uncomfortable critiquing women because they feel that women are too emotional.

The above issues are only examples of some of the problems confronting women in selling. Students will be able to expand

upon the list with little encouragement. Rather than dwell too much on the problems, students should be asked to suggest solutions

that companies can implement to alleviate the problems.

2. What do the exhibits in the case suggest?

Exhibit 1 reveals several points:

Women in general performed better than men during the first years of employment. In later years, this performance trend is

reversed. Of course, this assumes that quotas were equitably determined in the Southeast Region.

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 Case 2.2 - California Credit Life Insurance Group 1.

Exhibit 1

TOTAL SALES AND SALES TO QUOTA, 2001-2007

2001 % to 2002 % to 2003 % to 2004 % to 2005 % to 2006 % to 2007 % to

Total $ Quota Total $ Quota Total $ Quota Total $ Quota Total $ Quota Total $ Quota Total $ Quota
Sales Sales Sales Sales Sales Sales Sales
Suzette 228,800 101.4 247,104 102.1 261,930 101.4 267,169 102.3 264,340 101.1 282,844 99.6 288,500 98.5
Renoldi
Stuart Pletz 215,600 97.3 219,912 99.4 230,908 99.9 242,453 101.1 245,442 101.6 262,623 98.4 288,885 100.2
Alvin Polard 100,000 96.7 101,000 97.2 103,020 100.0 106,111 100.3 107,500 100.6 115,025 100.3 124,227 100.6
Ted 350,000 100.3 346,500 95.4 343,035 99.6 T
Hervington
Tim Hart 264,900 99.8 270,198 100.4 275,602 100.9 281,114 100.8 282,445 101.2 302,216 102.0 326,395 102.7
Brett Moore 234,000 98.9 231,660 96.7 231,660 99.0 232,818 98.1 T
Shari 375,000 105.3 397,500 103.5 413,400 102.6 417,534 102.1 410,890 99.8 T
Swaggert
Mark 189,000 101.2 192,780 100.6 198,563 101.1 204,520 100.8 204,800 100.7 219,136 100.1 230,093 100.4
Hoffton
Bob Pizzano 250,100 100.1 257,603 101.0 265,331 101.8 273,291 101.2 275,364 101.6 294,639 102.1 318,210 102.0

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 Case 2.2 - California Credit Life Insurance Group 1.

Felicia Abler 289,650 100.8 309,926 104.5 325,422 103.2 326,724 103.4 322,745 101.9 345,337 102.9 348,790 98.7
Katy 190,000 103.8 209,000 106.2 223,630 103.5 230,339 103.9 225,990 102.1 241,809 100.1 265,990 99.0
Levenhagen
Jeff Birdest 195,640 95.4 205,422 100.4 211,585 102.9 217,932 101.6 218,500 101.7 233,795 101.4 252,110 101.7
Larry Green 320,000 99.6 326,400 99.7 336,192 102.4 347,959 102.3 348,660 102.0 373,066 103.1 414,103 102.5
Chris 296,430 101.3 311,252 102.4 326,815 103.6 339,887 103.0 342,110 103.4 366,057 104.1 406,323 103.8
Brackett
Ilse Riebolt 287,500 102.4 296,125 105.3 T
Mike Peck 100,412 102.3 253,117 101.6 241,553 99.1 281,313 101.8 305,014 102.4
Jeff Martin 213,419 99.1 235,017 100.2 279,106 101.2 312,844 102.8
Cliff Arlen 185,442 97.1 214,877 99.3 264,651 98.1
Kim Babler 204,913 98.4 278,228 100.2
Terminations are noted by T.

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Case 2.2 - California Credit Life Insurance Group 1.

Bradford has not followed CCLI guidelines when replacing terminated sales reps. All replacements

have been men.

Bradford's reasoning for not transferring Renoldi to a better territory because of her reluctance to

entertain male customers seems spurious. Her performance from 2001 to 2006 has been good, and we can

only assume that she entertained customers or that entertainment is not that important.

Average quota performance for women sales reps in Bradford's region exceeds 100. For all seven

years, two of the top three performers are women.

Renoldi's average quota performance is 100.9 although it has declined for the last two years.

Exhibit 2 shows the following:

All women sales reps spent less each year on expenses than the male sales reps. Of the women,

Renoldi has the highest average expenses. These findings suggest that expenses are not strongly related to

sales.

Exhibit 3 illustrates the following:

Bradford has missed more performance evaluations with women than with men (12 misses for

women vs. 8 misses for men). Bradford seems to have problems conducting performance evaluations,

especially with women.

Students will question how Bradford has avoided conducting performance evaluations when it

appears to be a company requirement that there are two every year.

This suggests that Bradford's superior has been lax.

Exhibit 4 provides the following comments:

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Case 2.2 - California Credit Life Insurance Group 1.

All sales reps were paid the same starting salary in 2001. From 2002 to 2006, average salaries for

women exceeded the average for men. In 2007, this situation was reversed.

Salary increases are not strongly related to sales performance. Renoldi's salary exceeds Holton's

even though she missed quota twice in seven years and he made quota each year.

Exhibit 5 reveals the following:

Women in general are not as satisfied as men. However, in Bradford's region the women are much

more dissatisfied than the men.

Of the seven components, pay is the only one where women are more satisfied than the men.

Satisfaction with Bradford as supervisor or sales manager appears to be a serious problem.

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Case 2.2 - California Credit Life Insurance Group 1.

Exhibit 2

EXPENSE ACCOUNT DATA, 2001-2007

2001 2002 2003 2003 2005 2006 2007

Suzette Renoldi $1,800 $1,875 $1,820 $1,830 $1,790 $1,933 $1,905
Stuart Pletz 1,100 1,367 1,450 1,690 1,855 2,078 2,210
Alvin Polard 1,250 1,462 1,667 1,723 1,775 1,988 1,995
Ted Hervingtion 1,790 1,890 1,993 T
Tim Hart 2,000 2,134 2,177 2,189 2,950 3,304 3,380
Brett Moore 2,500 2,578 1,673 2,774 T
Shari Swaggert 1,540 1,603 1,615 1,672 1,715 T
Mark Hoffton 1,778 1,800 1,829 1,950 2,059 2,306 2,384
Bob Pizzano 1,892 1,966 1,998 2,150 2,331 2,611 2,673
Felicia Abler 1,224 1,250 1,282 1,354 1,332 1,439 1,461
Katy 1,452 1,466 1,562 1,432 1,455 1,571 1,543
Levenhagen
Jeff Birdest 1,970 1,980 2,155 2,245 2,778 3,111 3,260
Larry Green 2,145 2,256 2,347 2,355 2,679 3,000 3,114
Chris Brackett 2,234 2,457 2,679 2,789 2,887 3,233 3,211
Ilse Rieboldt 1,234 1,423 T
Mike Peck 1,131 2,046 2,181 2,270 2,413
Jeff Martin 1,548 2,060 2,316 2,385
Cliff Arlen 1,440 2,119 2,376
Kim Babler 1,804 2,223

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Case 2.2 - California Credit Life Insurance Group 1.

Exhibit 3

NUMBER OF PERFORMANCE EVALUATIONS, 2001-2007

2001 2002 2003 2004 2005 2006 2007

1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd
Suzette Renoldi Y - Y Y Y Y Y Y - Y Y - Y Y
Stuart Pletz Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Alvin Polard Y Y Y Y Y - Y Y Y Y Y Y Y Y
Ted Hervingtion Y Y Y Y Y Y T
Tim Hart Y Y - Y Y Y Y Y Y Y Y Y Y Y
Brett Moore Y Y Y Y Y Y Y Y T
Shari Swaggert Y Y Y Y Y Y Y Y - Y T
Mark Hoffton Y Y Y Y Y Y Y Y Y Y Y - Y Y
Bob Pizzano Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Felicia Abler Y Y - Y Y Y Y Y Y Y - Y - Y
Katy Levenhagen Y - Y Y - Y Y Y - Y Y Y - Y
Jeff Birdest Y - Y Y Y Y Y Y Y Y Y Y Y Y
Larry Green Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Chris Brackett Y Y Y - Y Y Y Y Y Y - Y Y -
Ilse Rieboldt Y Y - Y T
Mike Peck Y Y Y Y Y Y Y Y Y
Jeff Martin Y Y Y Y Y Y Y Y
Cliff Arlen Y Y Y Y Y
Kim Babler Y - Y

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Case 2.2 - California Credit Life Insurance Group 1.

Exhibit 4

BASE SALARIES FOR ALL SALES REPS IN THE S.E. REGION, 2001-2007

2001 2002 2003 2004 2005 2006 2007

Suzette $25,000 $27,600 $29,200 $29,200 $29,250 $29,300 $30,750
Renoldi
Stuart Pletz 25,000 27,300 28,900 29,150 29,860 30,580 32,750
Alvin Polard 25,000 28,930 29,600 29,900 30,650 31,320 33,850
Ted 25,000 26,000 26,700 T
Hervingtion
Tim Hart 25,000 25,780 26,750 28,890 26,900 27,000 29,700
Brett Moore 25,000 25,900 26,200 26,750 T
Shari Swaggert 25,000 29,000 29,500 29,750 29,800 T
Mark Hoffton 25,000 26,200 27,150 27,450 27,900 28,500 30,500
Bob Pizzano 25,000 27,100 28,450 28,600 28,770 28,900 31,300
Felicia Abler 25,000 28,750 29,200 29,450 29,500 29,750 31,500
Katy 25,000 28,450 28,750 28,950 29,340 29,750 31,500
Levenhagen
Jeff Birdest 25,000 25,700 26,500 27,800 29,100 31,000 33,750
Larry Green 25,000 25,900 28,000 28,750 30,100 31,500 34,000
Chris Brackett 25,000 27,000 27,800 28,900 29,990 31,000 33,750
Ilse Rieboldt 25,000 26,200 T
Mike Peck 25,000 26,000 27,500 28,300 28,750 30,000
Jeff Martin 25,000 26,500 27,500 28,250 29,500
Cliff Arlen 25,000 27,000 27,500 28,250
Kim Babler 25,000 27,250 28,000

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Case 2.2 - California Credit Life Insurance Group 1.

Exhibit 5

JOB SATISFACTION SUMMARY, 2007*

Southeastern Region Total Company

Male Female Total Male Female Total
1. Job 54.06 45.13 52.16 53.84 50.19 53.61

2. Fellow workers 58.35 49.63 55.82 57.98 51.11 57.39

3. Supervisor 59.91 41.24 57.33 54.13 48.54 51.43

4. Company policy and management support 61.58 52.28 60.17 58.91 53.28 56.46

5. Pay 49.31 52.39 50.07 49.88 54.65 49.92

6. Promotion and advancement 59.41 48.37 57.30 58.28 49.87 57.06

7. Customer 53.70 48.44 51.19 54.07 48.56 52.09

Total 59.47 48.14 59.12 58.19 50.23 57.48

*All scores are standardized at a mean of 50. The higher the score, the more sales reps are satisfied.

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Case 2.2 - California Credit Life Insurance Group 1.

3. What do the focus group interviews reveal?

The verbatim comments indicate that CCLI has problems that are similar to those experienced by other

companies.

CCLI seems to have problems in such areas as company support, supervisor performance,

acceptance of women as sales reps, communications, and performance evaluation.

4. What action should CCLI take concerning Renoldi's suit?

CCLI does not have enough information to take a position. Students should be asked to indicate what

additional information CCLI will have to gather to determine if Bradford is innocent or guilty of sexual

discrimination as charged by Renoldi.

Both Bradford and Renoldi will be questioned, although now it will involve their respective lawyers.

For certain Bradford will be asked to explain why Renoldi received a 5 percent salary increase in

2007 when she had failed to make quota for the last two years. Also of interest will be her .3 percent

increase from 2003 to 2006 at a time when she exceeded quota for each of the previous years. Regardless

of the legal outcome, Bradford's performance needs to be carefully monitored. CCLI may have grounds to

demote or dismiss Bradford.

5. What action should CCLI take to avoid future problems?

CCLI can adopt a number of techniques to help avoid future problems. Training is an area that needs

modification. Sales managers need training in how to critique performance. Evidence in the case indicates

that this is a major problem.

Women sales reps may need separate training in such areas as how to entertain customers, how to

handle unwanted attention, and the importance of networking.

Separate training may be needed for the male sales reps. It would be useful to prepare the male

sales reps on how to interact with female sales reps and female customers as well.

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Case 2.2 - California Credit Life Insurance Group 1.

A few companies provide separate training programs for women but most do not. One company

pays more attention to the subject of product knowledge for women since credibility was a problem

experienced by many saleswomen.

CCLI may want to provide some sort of sensitivity training for all employees. CCLI's purchasing

function may need some advice on how to work with saleswomen who occupy positions formerly held by

men.

If CCLI uses sales contests and other forms of recognition someone should bear the responsibility to

review these programs to avoid any sexual connotations.

Students will suggest numerous other strategies that CCLI should adopt to avoid future problems.

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Case 2.2 - California Credit Life Insurance Group 1.

California Credit Life Insurance Company Case Notes

Avery M. Abernethy - Auburn University

When a large company is faced with a potential legal action due to the actions of one or more employees,

there is a standard operating procedure that is often followed. According to interviews with several

attorneys for large corporations, the first step is to locate all internal documents. Next, the documents are

carefully examined. Only after the records are gathered and studied are the individuals interviewed. This is

done for several reasons. First, the documents are available in a court case during discovery. Second, the

documents are often treated by the courts as far more valid than oral testimony.

Diane Flanagan has secured data on sales performance, quotas, expenses, salaries, commissions and

performance reviews for all reps in Bradfords territory. This is the key information. The job satisfaction

data for the company and Bradfords territory is interesting, but not as important as the documented

behavior of the Sales Manager, James Bradford and the sales reps in his territory.

After securing the basic data, it is important to carefully analyze the information to resolve two

critical issues:

1. Does James Bradford discriminate against female employees in his district?

2. Did that discrimination cause economic loss to the female employees in his district?

A successful civil lawsuit must contain both factual actions of discrimination and economic loss to

the victims of the discrimination.

A third important issue is whether or not James Bradford has violated internal company policy of

supporting the work opportunities of all employees regardless of gender. It is possible that Bradford could

have done nothing illegal, but have violated company policy.

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Case 2.2 - California Credit Life Insurance Group 1.

Some students will side with either Bradford or the Suzette Renoldi the employee who filed the

sexual discrimination suit. Many students will react to the information emotionally and either decide to

support Bradford completely or to fire him on the spot without carefully examining the underlying facts.

It is important to remind students of the potential consequences to CCLI of firing James Bradford

without having a clear cause. If CCLI fires James Bradford and the facts show that he did not discriminate

against Suzette Renoldi or other female employees, Bradford may be able to successfully sue CCLI for

wrongful termination. Several cases of improper firings of managers based on sexual discrimination

complaints (but with little or no supporting evidence of actual discrimination) have resulted in the fired

manager successfully suing the parent company.

There are employee morale issues on both sides of this situation. Female employees are less happy

in this division than in the company as a whole. However, if Bradford is fired with little justification, the

other sales managers may feel that the company will not support them causing the morale of the sales

managers to fall.

Did James Bradford Discriminate Against Female Employees In His District?

Based on an analysis of the performance evaluations, firing patterns, and salary increases, in Bradford's

favor is the fact that females in his district spend far less on expense accounts and that failure to spend on

expense accounts is linked to a failure to meet sales quotas.

1. Bradford missed a disproportionate number of performance evaluations for females.

The performance evaluation data was analyzed to determine if there is a pattern of missing female

evaluations. The data shows that females are far less likely to receive a performance evaluation than male

employees.

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Case 2.2 - California Credit Life Insurance Group 1.

The Performance Evaluation Analysis spreadsheet shows the percentage of female employees, total

number of evaluations completed, the number of evaluations missed, and the percentage of evaluation

misses for both males and females for 2001-2007 (see Performance Evaluation Analysis table).

Although Bradford does not miss all that many performance evaluations, he is far more likely to fail

to provide females performance evaluations. For example, between 2003 and 2007 females were 26.7% of

the salespeople, yet between 2005-2007, 67% to 75% of the evaluations missed were for females.

Although this pattern was worst during 2005-2007, there is a clear pattern in Bradford tenure as district

sales manager of failing to provide performance evaluations for females.

California Credit Life Insurance Co.

Performance Evaluation Analysis

2001 2002 2003 2004 2005 2006 2007

% Female Employees 0.33 0.33 0.267 0.267 0.267 0.267 0.267

Total Number of Evaluations Done 27 26 27 30 225 26 26
Number of Total Evaluations Missed 3 4 2 0 4 3 4
Number of Female Evaluations Missed 2 2 1 0 3 2 3
Percentage of Female Evaluations Missed 0.6667 0.5 0.5 0 0.75 0.6667 0.75
Percentage of Male Evaluations Missed 0.3333 0.5 0.5 0 0.25 0.3333 0.25

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Case 2.2 - California Credit Life Insurance Group 1.

2. Bradford pattern of firing employees is not consistent.

The Missing Sales Quota and Being Fired table examines all district employees, the years they were with

the firm, the number of times they missed quota, the number of times quotas were missed in a row, and

whether or not they were fired. It is important to note that sales reps in this district are somewhat likely to

miss quota during their first six months on the job. For this reason, the four employees who missed quota

only one time during their first six months on the job were noted (Hart, Birdest, Martin and Babler).

It seems that some male employees can miss quota repeatedly and not get fired. For example,

Stuart Pletz missed quota four times including one stretch of missing quota three times in a row. However,

he was not fired by Bradford. Alvin Pollard, Ted Hervington, Larry Green, and Cliff Arlen all missed quota

twice in a row. Only Ted Hervington was fired.

In contrast, Shari Swaggert was the only district employee who was fired for failing to meet quota

only one time.

Although the evidence here is limited, if Ms. Swaggert was fired by Bradford for failing to miss

quota one time this was clearly a case where Bradford singled out a female employee for strongly negative

treatment.

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Case 2.2 - California Credit Life Insurance Group 1.

California Credit Life Insurance Co.

Missing Sales Quota and Being Fired

Num. of
Num. of Times
Times Quota
Years with Quota Missed in a
Firm Missed Row Fired?

Suzette Renoldi 7 1 1 no
Stuart Pletz 7 4 3 no
Alvin Polard 7 2 2 no
Ted Hervington 3 2 2 yes
st
Tim Hart 7 1(1 year) 1 no
Brett Moore 4 4 yes
Shari Swaggert 5 1 1 yes
Mark Hoffman 7 0 0 no
Bob Pizzano 7 0 0 no
Felicia Abler 7 0 0 no
Kathy Levenhagen 7 0 0 no
Jeff Birdest 7 1(1st year) 1 no
Larry Green 7 2 2 no
Chris Brackett 7 0 0 no
Ilse Rieboldt 2 0 0 no left
firm
Mike Peck 4 1 1 no
st
Jeff Martin 3 1(1 year) 1 no
Cliff Arlen 2 2 2 no
st
Kim Babler 1 1(1 year) 1 no

Note: Shari Swaggert was the only district employee fired for missing quota only one time.

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Case 2.2 - California Credit Life Insurance Group 1.

3. Total pay does not discriminate against women, but salary increases do.

It is very important to realize that the pay for sales representatives consists of two components:

salary and commissions. The commissions are essentially "pay for performance." If you sell a lot, you get

a big commission. Although the sales manager can give favored reps more lucrative territories, sales reps

who bring in little in the way of sales revenues will have small commissions.

The total pay for the sales reps in Bradford district was computed in the Total Rep Pay table. Total

pay was calculated by multiplying the total sales for each rep by year from Exhibit 1 and adding the salary

information from Exhibit 4.

This analysis does not support Suzette Renoldi' claim that females were not given good territories

to earn commission income. From 2001 to 2005, female total pay averaged higher than male total pay.

However, Bradford has direct control over salary increases. When the salary increase money is

studied, it is clear that males received far higher salary increases than females. This is true even when

performance is considered (exceeding sales quota).

The Comparison of Quota Performance and Salary Increase Given by Bradford table shows a clear

pattern of favoring males in salary increases. This table was derived from the salary data given in Exhibit 4

and the sales quota performance data given in Exhibit 1. This table gives the quota performance and the

salary increases granted by Bradford. Salary increases are based on the performance from the preceding

year. For example, the salary increase in 2002 over 2001 is compared to quota performance in 2001. The

table compares females and males that were at/over quota and females and males that were under quota.

Although the table does not consider how much a rep exceeded quota, there is probably not a strong bias

since the best performance was only 6.2% over quota by Kathy Levenhagen in 2002.

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Case 2.2 - California Credit Life Insurance Group 1.

This table provides some of the strongest evidence that Bradford did discriminate against females.

For example, the salary increases in 2003, 2004, 2005 and 2006 for males failing to meet quota exceeded

the salary increases for females exceeding quota. The salary increases for males exceeding quota is far

higher than females exceeding quota for salary increases from 2003-2007. This is true even though females

exceeded quota by a larger percentage than males from 2002-2005.

In addition, there is very strong evidence that Bradford specifically discriminated against Suzette

Renoldi. Her salary increases from 2004-2006 were either the lowest or next to lowest despite her

exceeding quota every year from 2003-2006. (Remember, salary increases for 2003 would be based on

2001 results).

Given this data, there is a strong case that Bradford denied salary increases to females compared to

males, even considering sales performance. Remember, salary increases are the only pay element under the

direct control of the sales manager.

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Case 2.2 - California Credit Life Insurance Group 1.

California Credit Life Insurance Co.

Total Rep Pay

2001 2002 2003 2004 2005 2006 2007

Pay Pay Pay Pay Pay Pay Pay
Suzette Renoldi
$31,864.00 $35,013.12 $37,057.90 $37,215.07 $37,180.20 $37,785.32 $39,405.00
Stuart Pletz $
3,148.00 $33,897.36 $35,827.24 $36,423.59 $37,223.30 $38,458.69 $41,416.55
Alvin Polard
$28,000.00 $31,960.00 $32,690.60 $33,173.33 $33,875.00 $34,770.75 $37,576.81
Ted Hervingtion
$35,500.00 $36,395.00 $36,991.05
Tim Hart
$32,947.00 $33,885.94 $35,018.06 $35,323.42 $35,373.40 $36,066.48 $39,491.85
Brett Moore
$32,020.00 $32,849.80 $33,149.80 $33,734.54
Shari Swaggert
$36,250.00 $40,925.00 $41,902.00 $42,276.02 $42,126.70
Mark Hoffman
$30,670.00 $31,983.40 $33,106.89 $33,585.60 $34,044.00 $35,074.08 $37,402.79
Bob Pizzano
$32,503.00 $34,828.09 $36,409.93 $36,798.73 $37,030.90 $37,739.17 $40,846.30
Felicia Abler
$33,689.50 $38,047.78 $38,692.66 $39,251.72 $39,182.40 $40,110.11 $41,963.70
Kathy
Levenhagen $30,700.00 $34,720.00 $35,458.90 $35,860.17 $36,119.70 $37,004.27 $39,479.70
Jeff Birdest
$30,869.20 $31,862.66 $32,847.55 $34,337.96 $35,655.00 $38,013.85 $41,313.30
Larry Green
$34,600.00 $35,692.00 $38,085.76 $29,188.77 $40,559.80 $42,691.98 $46,423.69

C2.1-24
Case 2.2 - California Credit Life Insurance Group 1.

Chris Brackett
$33,892.90 $36,337.56 $37,604.45 $39,096.61 $40,163.30 $41,981.71 $45,939.69
Ilse Rieboldt
$33,625.00 $35,084.56
Mike Peck
$29,012.36 $35,093.51 $35,546.60 $37,189.39 $39,150.42
Jeff Martin
$33,402.57 $34,550.50 $36,623.18 $38,885.32
Cliff Arlen
$32,563.30 $33,946.31 $36,189.53
Kim Babler
$33,397.39 $36,346.84
District Avg.
$32,573.24 $34,898.82 $35,608.34 $36,317.44 $36,746.30 $37,390.18 $40,122.06
Female Avg.
$33,225.70 $36,758.09 $38,345.37 $38,650.75 $38,652.20 $37,074.27 $39,298.81

C2.1-25
Case 2.2 - California Credit Life Insurance Group 1.

4. An analysis of expense account information supports Bradford.

The expense account information in Exhibit 2 was compared for males and females. Females do spend less

on expenses than the average rep for the district from 2002-2007 (see Expense Account Data table).

The Performance Evaluation Analysis table compares the number of people missing their sales

quotas with those who both missed the sales quota and spent below average on expense accounts.

Half of those missing quota were below average on expense account spending in 2001, 67% in

2005, and 100% in 2006 and 2007. Bradford' claim that failing to spend on expense accounts (which could

be related to overnight travel and entertaining clients) and missing quota is supported by the evidence.

What should California Credit Life Insurance do?

The data presents a fairly strong case that Bradford did discriminate against females in his district.

Females were paid far lower salaries, were far less likely to have performance evaluations, and were more

likely to be fired for missing quota. Females meeting or exceeding quota had salary increases that were

lower than their male counter parts who failed to make quota. Unless there is some unknown reason that

Shari Swaggert was terminated, her firing for missing quota only once is very suspicious.

CCLI may wish to settle with Suzette Renoldi for two reasons. First, the evidence is fairly strong

in her favor. Second, the case states that CCLI wishes to avoid negative publicity.

At minimum, Bradford should be reprimanded for his behavior and told that if his behaviors as a

sales manager with females concerning a] Salary increases, b] Firing patterns, and c] Performance

evaluations are not corrected that he will be fired for failing to meet CCLIs Equal Opportunity Policy. This

reprimand should be given in writing with a copy retained in his personnel folder.

Given the data in the case, there is support for firing Bradford immediately. This would also help

CCLI in a legal case since it displays that they take sexual discrimination seriously. CCLI may wish to

explore why Shari Swaggert was fired and interview the other female reps in the district individually.

C2.1-26