President's Message: Women in Executive Roles Result in Higher Profits for Companies
The headline of a recent New York Times article from February 9, 2016, which appeared in the San Francisco Chronicle, read, "Women in Executive Roles Tied to Stronger Profits, Study Says." The article explains that companies whose top management positions consisted of 30 percent women were 15 percent more profitable, according to a study released last week by the Peterson Institute for International Economics, a nonprofit group in Washington D.C. and EY, the audit firm formerly known as Ernst & Young.
Kelly Robbins, Robbins Family Law
As reported by the New York Times (and SF Chronicle), the study did not find evidence that quotas for women on boards, as required in Norway, Denmark and Finland, impacted the bottom line, but instead noted that countries need to focus more on the management 'pipeline' for women starting in early childhood. Countries with school-age girls who score high on math tests were more likely to have women in management positions, reported Marcus Noland, the institute's director of studies. This study found that gender diversity is still sorely lacking, as almost 60 percent of the nearly 22,000 companies reviewed had no female board members and more than half had no female executives.