Author: Daniel Sandberg, PhD, CFA, S&P Global Market Intelligence
Despite notable progress over recent years, female executives remain grossly underrepresented in the C-suite.
The New York Times noted that “fewer large companies are run by women than by men named John” in an article published in 2015. “The Johns” were in second place by year-end 2016, but not by much. Although female executives remain grossly underrepresented in the C-suite, this small victory for gender inclusion underscores a changing dynamic.
The S&P Global Market Intelligence Quantamental Research team has published one of the most comprehensive examinations, by breadth and time horizon, of gender diversity, to date. Our research finds that firms with female CEOs and/or CFOs:
• are more profitable and generated excess profits of $1.8 trillion over the study horizon
• have produced superior stock price performance, compared to the market average
• have a demonstrated culture of Diversity and Inclusion, evinced by more females on the company’s board of directors
So, what are females doing differently than males? The report presents an unexpected answer.