Ellen Pao V. Kleiner Perkins Caufield & Bayers Llc (kpcb) Discrimination Law Suit

Ellen Pao v. Kleiner Perkins Caufield & Bayers LLC (KPCB) Discrimination Law Suit

Abstract

Ellen Pao v. Kleiner Perkins Caufield & Byers LLC (KPCB) was a case that was widely followed by reporters, various advocacy groups, and the tech and Venture Capital firms in Silicon Valley. The case garnered significant attention because it was one of few gender discrimination cases that actually went to trial. Both Ellen Pao and KPCB are well recognized names in Silicon Valley. Senior level official in KPCB were referenced in the case and the stakes were high for both the parties. People were interested in witnesses and mix of Jury also was considered important. The outcome of this case has changed the discussion about gender discrimination law suits and various other high profile females have come forward to discuss their situations related discrimination and harassment at work.

Keywords: Diversity, Ellen Pao, Sex Discrimination, Silicon Valley Discrimination Law Suit, Ellen Pao v. Kleiner Perkins Caufield & Byers LLC

Ellen Pao v. Kleiner Perkins Caufield & Bayers LLC Discrimination Law Suit

 This case was one of widely followed sexual discrimination lawsuit as it involved high level corporate executives and one of the best venture capital firm in the country. Technology industry, startups and venture capital firms have been at the center of lack of diversity discussion in recent year. Various statistics have shown that, these high tech firms have been slow to embrace diversity in workforce and specially at senior levels. Another important aspect of this case was that it was not settled out of courts and both parties were interested in going to trail.

Diversity & VC Industry

        For several decades in the venture capital industry had been a very exclusive club which was made up mostly white males.  In recent years, this lack of diversity had been highlighted, but firms have yet to find ways to fully address the issue. Members of these elite clubs understand that the lack of diversity is a problem and they are trying to find creative ways improve the demographics.  In August of last year, 40 VC firms, led by the National Venture Capital Association Diversity Task Force have committed to support a more inclusive ideas aimed at advancing opportunities for women and underrepresented minorities in VC firms.  Even with this pledge, there has been very little evidence of firms bucking the status quo.  A three-month study done in Q3-15 of 71 top tier VC firms (KPCB included) reveled that only 8% of senior investment teams were female (Schulz, 2015).  Some of the issues that lead to the lack of diversity, critics said, were deeper than just the hiring practices; VCs lacked diversity because if they looked different than other VCs, then the traditional limited partners that fund VCs would eschew them for more traditional looking VC firms (Shaywitz, 2015).  Shaywitz was not alone in this assessment. The lack of diversity may lead VCs are more likely to invest in firms that have the similar demographics as their own further widening the gap between white males and other gender or racial groups (“Venture capital” n.d., para. 5).  Given that VCs play an important role in choosing which companies will success or fail, based on how much money to invest or whether to invest at all (Hiles, 2015), leading to an unfortunate cycle: lack of diversity in senior positions or investing partners in VCs begets a lack of diversity amongst start-ups, which begets higher number of white males launching VC firms.