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- Scoop Market Mysteries 3-20-22 - Gender Representation
Scoop Market Mysteries 3-20-22 - Gender Representation
🔎 Market Mysteries: How many Fortune 500 CEOs are woman?
Market Mysteries of the week
How many Fortune 500 CEOs are women?
Answer:
Not enough. Corporations, regulators, and governments are working to increase female representation to capture the benefits of diverse perspectives.
Why is gender diversity important?
It helps companies succeed.
Women in leadership roles have a measurable impact on a corporation's bottom line. Companies with the highest gender diversity on their executive teams are
than their industry peers. Studies show that
.
Not only do women in these roles benefit financial performance, but greater board diversity can help attract more employees. Women bring different perspectives, skill sets, and cultural differences to the table that drive creative and effective solutions. Companies that prioritize diversity and inclusion in their talent strategy are
, 3.8x more likely to be able to coach employees for improved performance, 3.6x more equipped to deal with personnel performance problems, and 2.9x more likely to identify and build leaders than other companies.
What does representation currently look like?
Women have earned over
in the US for the past 20 years and
But last year, women achieved
.
. Despite that number still being so low, the number of female Fortune 500 CEOs has actually grown from 5% in 2015, 3% in 2010, and 0.4% in 2000.
Aren't we seeing progress?
Yes, but
women are still promoted to manager at far lower rates than men
, making it nearly impossible for companies to lay a foundation for sustained progress. Women of color are further disadvantaged in the pipeline. Between the entry-level and the executive-level manager positions, the
. Women of color account for only 4% of executive-level jobs, and this number hasn't changed significantly in the past three years.
But if women are qualified, won't they be promoted?
It's not about a lack of qualification.
Despite making up more than half of the country's population, achieving
positions, earning 57% of all undergraduate degrees and 59% of all master's degrees,
in the United States.
Nor is it about poor performance.
Women-led teams drive returns. Companies with gender-diverse management teams have
. Companies with high representations of women in senior leadership teams see a higher return on equity and higher shareholder return compared to male-dominated companies.
Still,
men are promoted more than women
.
. And this means that men outnumber women significantly at the manager level, and therefore there are fewer women to elevate to higher executive levels.
, while men account for 62%. If women are less likely to gain executive positions, they're less likely to be considered for board positions.
Do women not want these roles?
Not necessarily.
or have a senior management position, compared to 54% of men who said the same. Women face historical sexism and gender bias that have created structural barriers to climbing the corporate ladder.
, which are social stereotypes about certain groups of people outside of one's conscious awareness, also add to structural barriers. People hold unconscious, unintentional beliefs about groups that stem from societal traditions, values, or experiences. A male manager does not have to be intentionally sexist to feel a better connection with a male applicant and select a man for the role.
Without actively seeking diverse viewpoints, hiring managers reinforce further unconscious gender preference.
Women also face structural barriers
like increased family responsibilities, limited access to established networks, and less developed female leadership networks. Approximately
but find it challenging.
Is anyone taking action?
Companies are facing pressure to diversify their workforce.
Last year, the Securities and Exchange Commission (SEC) passed a rule proposed by NASDAQ to encourage board diversity and require board diversity disclosures. This rule requires roughly 3,000 companies to
. It requires them to hire at least one woman on their board of directors and at least one person who identifies as an underrepresented minority or LGBTQ+. Some states have passed legislation to boost board diversity too.
all public companies to have at least one woman on their board and a certain number of directors from underrepresented communities.
also have passed legislation to encourage diverse boards.
Many companies have
in the workplace. Companies with
of women include:
General Motors: 58% women on the board
Etsy: 50% women on the board
Kroger: 45% women on the board
General Mills: 42% women on the board
Starbucks: 38% women on the board
Bank of America: 35% women on the board
The business world is no longer just a man's game - but women still face relatively significant hurdles striving for parity.
Transparency and action from companies are essential to help bridge this gap.
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