Companies with female finance chiefs are more profitable than those without, a recent study indicates
By Nina Trentmann Nov. 5, 2019 5:30 am ET Pressure from investors and lawmakers to boost gender diversity in the executive ranks and the boardroom are prompting more companies to consider a wider array of C-suite candidates and, increasingly, tie performance reviews and pay to hiring targets.
Still, the number of female executives at large U.S. companies is quite low. In 2018, 12.8% of CFOs of Fortune 500 companies were women, according to data from Spencer Stuart. During that year, only 9% of companies in the Fortune 500 appointed female CEOs, according to the recruiting firm. Recruiters say companies in the past year have increasingly requested more diverse candidates. Meanwhile, more companies are setting internal recruitment and promotion targets that promote diversity.
“The only way this is going to change is when companies become convinced that this is best for their business,” Ms. Story said. “Tie it to the incentives,” Ms. Gordon said. “When you are struggling to achieve diversity, it is up to the leadership and the board to say, ‘We are making an economic difference.’”
Failure to meet diversity goals is reflected in performance reviews, which ultimately can affect bonuses. “This creates accountability,” said Mr. Sulentic, who in April hired a female finance chief, Leah Stearns.
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