The jury has returned and Kleiner Perkins is not guilty of sex discrimination.Greenspun asks a great question.
How is it possible to lose a lawsuit like this in one of the most plaintiff-friendly jurisdictions in the world? As noted in my previous postings (first; second), it was hard to explain why the partners of Kleiner Perkins wanted to make themselves poorer by promoting an unqualified man in favor of a qualified woman. Discrimination of any kind might make sense for a manager at a government agency. His or her salary won’t change if less qualified or productive people are hired to fill jobs. His or her customers cannot be wooed away by a more efficient competitor. But almost anyone should be able to understand that for a VC partnership, indulging in discrimination will personally cost the partners. In addition, Pao had the “bad fact” of the affair with the married co-worker, a circumstance that most people can understand might lead to on-the-job problems.
Why did people think that this case was strong? My theory is that American journalists and pundits, nearly all of whom have no technical education or experience with industry that depends on engineering, simply wanted to write about gender discrimination. Here’s an example from Forbes: “Cracking The Boys Club: Jenny Lee On What It Means To Be The Top Woman In Venture Capital” (March 25, 2015). Forbes talks about VC being a “boys club” (headline) and implies that the U.S. VC world is not “open to female venture capitalists”. These statements are directly contradicted by the woman who is supposedly the subject of the piece. The interviewee, who actually some experience with venture capital and engineering, says that VC “is capitalism at its ultimate. To do well you have to understand this point. No one is going to be nice to you because of your age, or where you come from or your gender. The VC industry is about survival of the fittest, and that’s the same mindset we give to our entrepreneurs.” When pressed as to why there are few female VCs she points out that less than 10 percent of her engineering class at Cornell were female.I would file this, along with so much else in the mainstream media as advocacy journalism blinded by an unawareness of their own differentiation from the great majority of Americans.
Plainly Ms. Pao would be close to $200 million richer today if the jury had been 12 journalists from the New York Times and other publications that reported on the case as though the guilt of Kleiner Perkins had been established prior to trial. Denied a place in the jury box, what are these folks writing now? That this lawsuit was somehow useful in “starting a conversation.” None of the articles about how great this is for the nation mention the fact that it had to cost Kleiner Perkins at least $10 million in legal fees and distraction/time.