By Betsey Guzior, Engagement Editor at Bizwomen (a NAWBO media partner)
A new global survey of more than 21,000 companies reveals how the presence of women in top ranks is a real payoff—in profits.
How much? The Peterson Institute for International Economics survey finds that the more women a firm has in its top ranks in the C-Suite, the higher its profitability will likely be.
A profitable firm with 30 percent of top ranked positions held by women could expect a net margin increase of 1 percent, compared with a firm with no female leaders. For companies with small profit margins, a 1 percentage increase can make a huge difference; on average, a 15 percent increase in profits of the firms surveyed.
The top leader does not have to be a woman, said two of the report’s authors in the Harvard Business Review. “Our results indicate that the impact of having more women in the C-suite is bigger than that of having a woman on the board or as the CEO. In fact, we found that female CEOs neither systematically outperform nor underperform their male counterparts.”
Click here to view the complete story and a chart that shows which industries worldwide have more women in executive ranks and board of directors.