New research from The Peterson Institute for International Economics and EY shows that having more female leaders in business can significantly increase profitability. The report, Is Gender Diversity Profitable Evidence from a Global Study, reveals that an organization with 30 percent female leaders could add up to 6 percentage points to its net margin.
This in-depth new study analyzes results from approximately 21,980 global publicly traded companies in 91 countries from a variety of industries and sectors.
“The impact of having more women in senior leadership on net margin, when a third of companies studied do not, begs the question of what would be the global economic impact if more women rose in the ranks” said Stephen R. Howe, Jr., EY’s US Chairman and Americas Managing Partner. “The research demonstrates that while increasing the number of women directors and CEOs is important, growing the percentage of female leaders in the C-suite would likely benefit the bottom line even more.”
