18 Oct LOOKING FOR BETTER FINANCIAL RETURNS FOR YOUR COMPANY? APPOINT A FEMALE EXECUTIVE!!
LOOKING FOR BETTER FINANCIAL RETURNS FOR YOUR COMPANY? APPOINT A FEMALE EXECUTIVE!!
As the NMSDC Conference 2019 wraps up, an interesting study by S&P Global Market Intelligence finds out that Female CFOs brought in $1.8 trillion of additional cumulative profits when compared to male CFOs. When compared to male predecessors, companies saw, on average, a 6% increase in profits and an 8% better stock return within the first 24 months post-appointment.
Higher standards for women
Daniel Sandberg, senior director of quantitative research at S&P Global and author of the report, says: “The bar is a little bit higher for females. The result is that the male group that is a contender for an executive position is little over-fished, and the female contingent is under-utilized”.
Gender Diversity on C-Suite Positions
Female contenders for C-suite positions represent a relatively underutilized pool of talent, possibly attributable to a higher degree of scrutiny from the firms’ board of directors and consequently resulting in the tendency of females in C-suite positions to be more talented.
Over the time-horizon of the study, female CEOs saw more value appreciation and improved stock price momentum for their firms; whereas female CFOs drove more value appreciation, better defended profitability moats, and delivered excess risk adjusted returns for their firms.
Source: S&P Global.