A recent study shows that firms with more female executives perform better in today’s increasingly competitive corporate environment. In fact, not only do these women-led companies perform better operationally, they are also much more profitable. The study goes on to show that ‘London-listed companies are up to 10 times more profitable when women make up more than one in three executive roles.
Why Are Businesses More Successful With Women In Charge?
Still, according to gender diversity studies, around 5% of today’s UK companies are led by women. What’s more, 15% of the companies listed in the FTSE 350 have no female executives at all. Why is this and why are businesses so much more successful with women at the helm?
Industry experts say that ‘having more women in the decision-making room means businesses are better able to understand their customers’ and that, ‘there is a dramatic difference in net profit margins of companies that have diverse gender leaderships as opposed to companies that do not.’
Another report showed that London-listed companies which have no women on their executive committees typically have a net profit of just 1.5%, whereas London-listed companies with more than one in three women at the executive level are seeing net profit margins of around 15.2%.
So, just what positions do the UK’s top women hold in today’s firms? Fewer than 2 out of 10 chief financial officers are women, with men making up almost 96% of London’s investment managers. Construction and retail are among the top sectors reporting the lowest number of women in executive roles. However, in the retail world, this is different. Most entry level retail jobs are typically 80% women, and many of those women don’t make it to the executive level in their companies. Certainly, corporate UK has to see this glaring imbalance.
Women Are Still Underrepresented In Executive, Decision-Making Roles
Even former Prime Minister Theresa May, has weighed in on the topic stating,
“Every single male CEO who looks around his boardroom table to see nine out of 10 male faces staring back at him needs to ask himself what he is doing to make his business one which his daughter or granddaughter can get on in.” she went on to say that, “There are talented females out there, no-one could really argue against this, and while she welcomes recent moves to encourage women to make up 30% of company boards, it’s in executive, decision-making roles where women are still underrepresented.”
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