Women CEOs make a difference for other women, according to a new report released by the US-based Corporate Women Directors International (CWDI). In a survey of nearly 3,000 companies in 55 countries, the research found that on average, the 143 companies with a woman CEO had significantly more women both on their Boards of Directors and in Executive Officer positions.
Representing only 4.8% of the 2,944 companies in the study, women-led companies averaged 34.1% women on their Boards of Directors compared to 23.3% for companies with a male CEO. Similarly, companies with a woman CEO tended to have more executive officers as well, averaging 36.4% women in their senior management team compared to 23.8% in companies with a male CEO. These overall findings held true for all parts of the world. In each region – North America, Europe, Africa, Asia-Pacific and Latin America – the average percentage of women board directors and executive officers of companies with a woman CEO is higher than companies led by a man.
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“Still too few women have reached the CEO level of the largest companies in each country,” said CWDI Chair Irene Natividad. “But what is clear is that women at the top are a plus for women, whether the company is headquartered in Bangkok, London, Nairobi, or California. Increasing gender diversity on the board and in senior management may not have been a primary goal when these women became CEOs, but it is nonetheless their impact.”
In CWDIs ‘Top Ten’ list of best-performing women-led companies, Swedish retailer Hennes & Mauritz, better known as H&M, ranked first with 2/3 of its board (8 of 12) comprised of women. DNB ASA, Norway’s largest financial services group, New Zealand’s Spark NZ Ltd., US automaker General Motors, Sweden’s Svenska Handelsbanken, US aerospace and defense company Northrup Grumman and Belgium’s Solvay all have over 50% women on their Boards of Directors. Among companies with the highest percentage of women Executive Officers, the best performer is SSI Group, based in the Philippines, which has four of five executive positions held by women (80%).
This CWDI 2021 report also found that the increase in women’s leadership roles in companies with women CEOs happened upon their appointment, instead of following a trend that may have already existed with their predecessors. Following being named CEO, these women-led companies increased their percentage of women board directors from 21.9% at the time of appointment to 34.1% at the beginning of 2021 and their percentage of women executive officers from 24% to 36.4%.
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Looking back at CWDI’s 2011 Report on women CEOs which echoed current patterns previously indicated, there has been little increase in the number of women at the top. In the past decade, the percentage of women CEOs has only climbed slightly, from 3.8% in 2011 to 4.8% in 2021. Countries with the highest percentage of women CEOs are the U.S. (8.1%), Singapore (8%), Australia (7%) and Thailand (7%), while countries with few or none among their largest companies at the start of 2021 included China, Japan, and Germany.
“It is well-known through dozens of studies that women-led companies have positive impact on a company’s bottom line,” said Natividad. “So, given that women at the top are good for workers, customers, and shareholders, why aren’t more companies placing more women in CEO roles? Clearly, companies need to proactively commit to speeding up the pipeline of women corporate leaders to achieve future growth.”
Among the solutions the report offers for accelerating an increase in the number of women reaching the CEO role are a structured mentorship or sponsorship program enabling high potential women to be visible to senior leaders and guided in navigating the pathway to the C-suite; assignment of women to revenue-generating line assignments; and policies such as paid family leave for female and male employees so women can reduce career gaps tied to family-related responsibilities.
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