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Gender Equity Insights 2020: Delivering the Business Outcomes

Workplace Gender Equality Agency Bankwest Curtin Economics Centre

2020

Australia

Report/Paper

Workplace Gender Equality

Workplace Gender Equality Women in leadership business case for wge wge women ceos

Gender Equity Insights 2020: Delivering the Business Outcomes

Gender Equity Insights 2020: Delivering the Business Outcomes

Published by the Bankwest Curtin Economics Centre and the Workplace Gender Equality Agency, the 2020 Gender Equity Insights report, the fifth report in this series, shows that more women at the top proves better for business:

  • Profitability, performance and productivity increase under female leadership
  • Female top-tier managers add 6.6 per cent to market value of ASX companies
  • Female leadership will help businesses thrive in a post-COVID world.

The report shows a strong and convincing causal relationship between increasing the share of women in leadership and subsequent improvements in company performance. This relationship is present when increasing women’s representation on boards, increasing the share of women in the most senior leadership tier of the company and when appointing a female CEO.

The business case for increasing the number of women in senior leadership positions has long been argued, with greater diversity of thought delivering new ideas, new management styles and ultimately better business outcomes.

The findings in this report provide clear support for the business case. More women at the top means better company performance, greater productivity and greater profitability

 

Key Findings

  • An increase of 10 percentage points or more in female representation on the Boards of Australian ASX-listed companies led to a 4.9 per cent increase in the company market value, worth the equivalent of AUD$78.5 million for the average company;
  • An increase of 10 percentage points or more in female representation on Boards led to a 6% increase in the likelihood of outperforming their peers on three of more metrics;
  • The appointment of a female CEO led to a 12.9% increase in the likelihood of outperforming the sector on three or more metrics;
  • An increase of 10 percentage points or more in the share of female key management personnel led to a 5.8% increase in the likelihood of outperforming their sector on three or more metrics;
  • Women are least likely to be the Chair of the Board, with only 14.1% of women being Board Chairs;
  • Women make up only 17.1% of company CEOs;
  • 8% companies have no female representation on their Board and a similar proportion of companies have no women in their key management teams;
  • Two-thirds of firms in the construction sector have zero female representation on their Boards.

 

Contents

  • FOREWORD WGEA
  • FOREWORD BCEC
  • Executive Summary
  • Introduction
  • WOMEN IN LEADERSHIP
  • Women in Company Leadership Roles
  • Women in Leadership and Industries
  • Does Company Size Matter?
  • Gender Diversity and Company Performance
  • How well do companies perform at a single point in time?
  • What happens to company performance when you change the share of women in leadership?
  • FEMALE REPRESENTATION AND BUSINESS OUTCOMES: ARE THEY STATISTICALLY LINKED?
  • Linking female representation to business outcomes: modelling strategy
  • How to measure company performance
  • Linking female representation to business outcomes: specification
  • Linking female representation to business outcomes: key findings
  • SUMMARY AND DISCUSSION
  • GLOSSARY AND TECHNICAL NOTES
  • REFERENCES

 

This report was originally published on the BCEC website.

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