Title: Women in the Executive Suite Equal Higher Profits
Study:
Women in the Executive Suite Correlate to High Profits (European Project on Equal Pay, Adler)
Finding:
Note about The Woman Effect Research Index: This study was performed by researchers not affiliated with InPower Women. Our Research Index includes all relevant research to the subject of women, business and power. We do not influence how the research was conducted or reported by the researchers. In our abstracts, we focus on pulling out the most actionable advice for individual women. To suggest additional research we should index, or discuss our choice of abstract focus, please contact us
InPower Insight:
Having women in the executive suite, and women in leadership positions, is a win-win for everybody.
Summary:
This study is based on data presented by Fortune 500 companies from 1980 to 1998 about the amount of women who occupied their top executive committees and Board of Directors. Each industry was evaluated on three main categories of profitability including percent of revenue, assets, and stockholders’ equity. Results clearly demonstrate that when women were promoted, companies were financially better off than companies that did not promote women. Twenty- five subject firms fared better by 34 percent in revenue than companies in the same industry that did not promote women. In terms of assets, companies that promoted women outperformed companies in the same industry by 18 percent. Individually, 62 percent of the subject firms were more profitable in terms of assets than their counterparts. Women friendly firms outmatched their counterparts by 26.5 percent in stockholders’ equity. Individually, they outperformed their counterparts by 68 percent.
Keywords: Assets, Profitability, Stockholder’s equity, women-friendly
Guide to Women in Leadership
Organizations with women in their executive suites regularly out-perform others. Yet rising female executives (and their mentors) are frustrated at how hard it is to break through the glass ceiling. In this extensive guide, Executive Coach Dana Theus shares her tried and true strategies to help women excel into higher levels of leadership and achieve their executive potential.
