Kleiner Perkins Caufield & Byers, the prominent Silicon Valley venture capital firm being sued by one-time partner Ellen Pao for gender discrimination, has spent four weeks portraying her as territorial, sharp-elbowed, and essentially unlikable. As the trial winds down, Kleiner's focused on calling its most charismatic female employees to the stand to praise the company's welcoming atmosphere.
At the end of last week, defense lawyers called their last two witnesses: Juliet de Baubigny, a Silicon Valley power broker who handles the firm's recruiting and human resources; and Dr. Beth Seidenberg, one of the world’s leading life sciences investors who was an AIDS researcher in the early 1980s. Both denied seeing gender discrimination while working at Kleiner Perkins, which they called one of the best places in Silicon Valley for female venture capitalists.
“We feel very strongly that we have an opportunity and a responsibility on this issue to do something about it,"de Baubigny testified. "We very much want to ensure that more women build great careers.”
Pao is suing Kleiner Perkins for $16 million in compensatory damages, claiming the firm discriminated against her because of her gender, and punished her professionally when she complained. The trial, which is entering its fifth week today, has been closely watched by much of the tech industry, where women are still a distinct minority. In the VC world, the gender problem is even worse.
After Judge Harold Kahn ruled over the weekend that the jury could also consider awarding punitive damages, the cost to Kleiner could wind up much higher if the firm loses.
De Baubigny, known to be friends with famous people like Gwenyth Paltrow, Sheryl Sandberg, and Rupert Murdoch, handled recruiting and performance reviews at Kleiner Perkins. On the stand, de Baubigny admitted to having helped enlist Pao, but “very quickly” gathered that Pao was the type of person that had "many interpersonal issues."
On Friday, de Baubigny listed eleven partners about whom Pao allegedly complained, including her mentor, John Doerr, and Carmen Yip, her administrative assistant. She described Pao as an introvert who was quiet in meetings, which made it difficult to understand her point of view. One-on-one, on the other hand, de Baubigny said Pao could be "tough and critical."
Pao's lawyer tried to depict de Baubigny as Pao’s confidante, describing incidents when Pao and de Baubigny would get coffee or tea together and discuss coworkers. But de Baubigny rejected the suggestion they were close. "You’re making it sound collegial and episodic. It wasn’t like that," she said.
In fact, de Baubigny testified, she later tried to dissuade Pao from approaching her in this manner. "I came to dread when she would come to my office with her notebook and want to talk about things," she said.
Pao never discussed any gender discrimination issues with her, de Baubigny testified. And she only "vaguely recalled" one interaction with another female partner, Trae Vassallo, in a hallway, during which they discussed Ajit Nazre, a one-time partner with whom Pao has admitted having an affair. But de Baubigny called the incident "insignificant," saying it lasted about a minute and had nothing to do with sexual harassment or discrimination.
De Baubigny denied Pao’s allegation that she had called Nazre "a sex addict," calling the claim "completely ridiculous." In her suit, Pao conceded to having the affair and claims he retaliated against her when she ended the relationship.
According to de Baubigny’s testimony, Kleiner Perkins had a very pro-female environment, much of which owed itself to Doerr’s advocacy. "John is very eloquent and effusive on the subject," she said. "When he recruited me to the firm, he was adamant that together, we should expand the number of women at Kleiner Perkins."
Dr. Beth Seidenberg, one of the few women managing a fund at Kleiner, echoed the pro-women characterization of the firm. Under questioning by a defense lawyer, she described internal all-female dinners that she and other women at Kleiner tried to organize. "We'd aim for one a quarter, and we probably managed [to hold dinners] at least twice a year," she said.
Seidenberg hosted one such dinner in February, 2011, according to her testimony. Kleiner lawyers illustrated the point with a photo of smiling attendees.Seidenberg denied seeing sexism or discrimination in her years at Kleiner Perkins, arguing that the firm often discussed the lack of women in the industry. "We want to see diversity of all types," Seidenberg said.
On the stand, she spoke forcefully about her passion for making a difference in the life sciences industry by making smart investments. After spending 20 years developing therapeutic products for patients, Seidenberg said, she decided to switch gears and go into venture capital. After considering many options, she testified, she chose Kleiner Perkins because the firm had "the goal of changing the world."
Seidenberg never aimed to become a managing partner, she said after being asked about her goals by Kleiner’s lead attorney, Lynne Hermle. She said that would be an administrative role, when her passion was investing. As an investor, she testified, "you can make a difference."