Female CEOs on a Glass Cliff? A Look at Gender Diversity and Company Performance
OCTOBER 26, 2018
In this article, we examine the performance of companies where CEOs have held their roles for at least three years, and we observe that gender-diverse executive teams exhibit superior performance whether the CEO is female or male. Conversely, companies with no women in their top five executive roles or companies where the CEO is the only woman in the C-suite show the worst levels of performance, risk, and valuation. Companies that combined gender diversity in both the C-Suite and the board showed overall the best results in terms of risk-adjusted quality of performance, as we detect C-Suite diversity driving strong performance, while board diversity may help companies better manage risk.