Macro Insights: Rise of the female CEO

FEMALE CEO’S: The number of female investors is growing faster than men. They invest differently, and often do better. The same is true for female CEO’s. The percentage of large US companies run by women has risen from under 1% two decades ago to over 8% today (see chart). Whilst a clear improvement, this is still very low. Today’s female CEO’s range from Mary Barra at General Motors (GM) to Jane Fraser at Citigroup (C).

GLOBAL VIEW: Such low numbers are a global phenomenon. In the UK, only 6% of FTSE 100 CEOs are women, such as Emma Walmsley at GSK (GSK.L). Merck (MRK) CEO, Belen Garijo, was the only female to lead a DAX 30 company. Globally, the World Bank estimates women make up only 18% of senior management roles, led by Asia. Even those doing best in this global data, such as China at 38%, are well below parity.

THE FUTURE: There is plenty of evidence, by Harvard Business School and S&P Global for example, that female led companies and more diverse leadership, helps performance. More change is coming. Flows into funds that prioritise so-called ESG investments are booming, and regulatory action is happening. For example, NASDAQ now requires companies to explain if they don’t have diverse boards. The UK regulator is consulting to introduce board diversity targets. Join the eToro #InvestWithHer initiative.

TODAY: US producer prices are set to inch up, to 8.7% versus last year, keeping pressure on corporate profit margins and US consumer prices (rising to 5.8%) due tomorrow.

All data, figures & charts are valid as of 08/11/2021