Study: Women executives make companies more profitable

Study: Women executives make companies more profitable

Companies at the London stock exchange´s listing FTSE 350 which have executive committees with female membership of more than 33% had 2020 a net profit margin over ten times greater than those with no women at this level, a study from The Pipeline shows. The UK-based The Pipeline was established in 2012 to enable organisations to achieve diversity goals. “Companies with no women on their executive committees have a net profit margin of 1.5% whereas those with more than 33% women at this level reached an impressive 15.2% net profit margin.”
“There can be no good explanation for the massive underrepresentation of women at the top British business – so it must change”, former UK Prime Minister, Theresa May, wrote in the foreword to the report.
She also noted that “in the FTSE 100 there are more CEOs called Peter (6) than there are women in the top job (5)”.
In 2020 there were just 13 women CEOs of FTSE 350 companies. Just 16% of chief financial officers were women with 84% for men.
“A staggering 68% of FTSE 350 companies did not have a single female executive committee member in a P&L role (profit and loss)”, the report says.
Companies in the FTSE 350 led by women had an average 1 in 3 people being women on their executive committees which fell to an average of 1 in 5 for companies led by men.
“Women CEOs are critical to driving gender diversity at senior levels”, the report states.

Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.

Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!

We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.

Moonshot.news

Moonshot.news

[email protected]

Follow
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

    Do you want an experienced opinion on a job issue?

    Moonshot Manager is here to answer!

      Moonshot community sharing thoughts and ideas, in a anonymous, safe environment.

        Moonshot community sharing thoughts and ideas, in a anonymous, safe environment.