Proof Female CEOs Are Good For Business
Jul 16, 2014
Women are leading the way in big business, and we have the data to back it up.
A new analysis by Fortune indicates companies with female CEOs make more money. ”Fortune 1000 companies with female chiefs outperformed the S&P 500 index over their respective tenures,” explains Fortune’s Caroline Fairchild.
Though only 51 of the Fortune 1000 companies are run by women, the Fortune study found female-led companies generate 7 percent of Fortune 1000′s total revenue. And of those female fortune 1000 CEOs who chose to disclose their family status, over 80 percent reported that they are also wives and mothers, notes the Huffington Post.
At present, analysts aren’t exactly sure why female-led companies are doing so well, but research from the Ketchum Leadership Communication Monitor suggests it may have something to do with women’s approach to management. As HuffPost writer Alanna Vagianos notes:
The study surveyed over 6,500 people in 13 countries on which qualities they thought make for better leaders. Data revealed that people favor leaders who lead by example and handle crises calmly and confidently — all characteristics that the study also found to be more common in female leaders.
Makes sense. What doesn’t make sense, however, is the fact that women CEOs still receive little respect. Some business analysts suggest it may take up to 75 years to close the gender wage gap. And adding insult to injury: research shows that women CEOs are more likely to be fired than their male counterpart.
Though we still have a long way to go, it’s plain to see we’re making strides in the right direction.