Organisations with female CEOs and CFOs are more profitable, according to S&P Global’s latest report, When Women Lead, Firms Win, which examines the performance of firms with female CEOs and CFOs. It revealed that companies with female leaders at the helm of their organisation, produced superior stock price performance, compared to the market average.
Female CEOs saw a 20% increase in stock price momentum, while female CFOs saw a 6% increase in profitability and 8% larger stock returns, 24 months following their appointment. In fact, firms with female CFOs generated profits in excess of $1.8 trillion, the report confirmed.
Firms with greater gender diversity on their board of directors were also more profitable and larger than firms with low gender diversity, according to the findings. Firms with women CEOs and CFOs also demonstrated a culture of diversity and inclusion (D&I) with a larger representation of females on their company board of directors – at least twice the amount, compared to the market average (23% versus 11%).
SIGNIFICANT VALUE
“As we look at financial performance, this research is yet another confirmation that women provide significant and positive value through c-suite and board leadership positions,” said Doug Peterson, President and Chief Executive Officer of S&P Global. “Diversity and inclusion across the c-suite and throughout companies benefits everyone – all employees, companies and economies. We hope this study will further advance the conversation at S&P Global and beyond.”
Photo credit: S&P Global
The findings show “exactly why businesses are looking to move the needle in a meaningful way”, commented Martina Cheung, President of S&P Global Market Intelligence.
Understanding the data and bringing transparency to the markets can help drive positive change both for companies and the communities we operate in, said Cheung. “The results are both extensive and robust enough to yield statistically significant results and can play a vital role in accelerating progress,” she added.
CHANGE PAYS
The research was carried out by the S&P Global Market Intelligence Quantamental Research Team and includes analyses from 5,825 new executive appointments, of which 578 were female. It was conducted as part of #ChangePays, part of S&P Global’s ‘Vital Statistics’ Corporate Responsibility initiative launched earlier this year, to provide essential intelligence on the benefits of women in the workforce to help build thriving global communities.
This research was launched in coordination with the S&P Global #ChangePays installation — a large-scale public art installation displayed in the Ronald Reagan Building and International Trade Center during this month’s Institute of International Finance Annual Membership Meeting in Washington, D.C. The installation features 549 bank notes with women’s portraits across eight global currencies. This ‘remarkable’ structure transforms before your eyes, illuminating the positive impact of greater workplace inclusivity and elevating the conversation about the need for gender parity in the workplace, said S&P Global.
For a copy of the report, click here.
Sign up for our newsletter
