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Companies Perform Better with more Female Executives

View profile for Inbar Rabinovitz
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Companies Perform Better with more Female Executives

New research conducted by The Pipeline (Diversity and Inclusion specialists), into London based companies, shows that companies with at least one third of their bosses being female are more profitable in that their profit margin at least 10 times greater than those without the same number of female executives.

It is reported that 15% of companies in the FTSE 350 do not even have any female executives, at all. It is those London-listed companies without female executives that reportedly have a net profit of 1.5% whereas companies with at least one third of the board being  female, reach a net profit margin of 15.2%.

Interestingly, the sectors that appear to have the lowest number of female executives are the construction and retail sectors. This is despite the fact that approximately 80% of entry-level roles in retail appear to be taken up by females.

Vanda Murray OBE led Blick PLC in the early 2000s and she currently chairs the board at Marshalls PLC, a FTSE 250 construction firm so there is no doubt that she is familiar with the environment at executive levels. Ms Murray pointed out that companies with people in leadership roles being from mixed backgrounds, ethnicity and gender do better because "they challenge more, and they have more discussion and debate and that leads to better decision-making". She even confirmed that, at Marshalls, they have plans in place for younger female managers to continue to develop and hopefully progress within the business.

More diversity of genders and backgrounds in executive levels would certainly be welcome and these latest statistics show just how helpful it could be for businesses.

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