New statistics from The Pipeline's Women Count 2020 report show that companies with more women in exeutive roles generated more profit.
The statistics on gender disparity in executive roles and funding are well known at this point, with male-led startups getting 80% of all venture capital funding worldwide. For its Women Count 2020 report, gender diversity group The Pipeline examined female leadership and company performance across all of the companies listed in London's FTSE 350 index.
Of the top 350 London-listed companies, just 13 have female CEOs and around 15% have no female executives at all. The group then compared the number of executives in a firm to the profit it makes, and found an interesting correlation between increased net profit and increased gender diversity at the top.
Companies in which at least a third of the bosses were women showed over 10 times higher profit margins than those with fewer than a third. Firms with no women on their executive commitees showed an average net profit of 1.5%, while those with over a third women at the executive level reached 15.2% net profit.
If the companies listed with no female executives had performed at the same 15% profit margin, they would have generated an additional £47 billion in revenue. The group's co-founder Lorna Fitzsimons suggests that having more women in decision-making roles helps businesses understand their customers better.
Head over to The Pipeline to read the full report.
Source: BBC News
