Companies with female leaders do better than those helmed by men: Study

The study found that the presence of women in corporate leadership positions can boost a firm’s performance.

New Delhi: A House of Commons research has found that companies with female leaders do better than those helmed by men. The study found while having women in executive ranks resulted in better profitability.

The study, just ahead of the International Womens Day, found that the presence of women in corporate leadership positions can boost a firm’s performance. Citing McKinsey research that showed that companies that had practised gender on executive teams were 25 percent more likely to have above-average performance. Infact, companies that had more than 30 percent female executives were more likely to outperform those companies which did not have female executives.

Anneliese Jane Dodds, British Labour and Co-operative politician and Shadow Secretary of State for Women and Equalities has accused the government of ignoring women’s needs during the pandemic, reported the Guardian paper. 

Dodds speaking to the Guardian said, “When you’ve got more engagement from women, when women are in the driving seat to the extent they should be, it makes for far more successful businesses."

Meanwhile, a Reuters report last month said that even women who make it to the top ranks of US corporations face a persistent pay gap compared with men in leadership roles.

Citing the Center for American Progress, a Washington think tank, Reuters said that the 52.1 million US women who worked full-time, year-round earned 82 cents for every dollar earned by men in 2019, up from 80 cents in 2015.

Gender and race-based pay differences have received more attention amid social justice protests and the brutal economic impact of the COVID-19 pandemic, it added.

With Reuters Inputs