The report’s analysis continues to demonstrate that the higher the percentage of women in top management, the greater the excess returns for shareholders. Financial performance metrics verify this superior stock market performance. From YE13 through mid-16, companies where women accounted for 25 percent of senior leadership outperformed at a compound annual growth rate of 2.8 percent; this increased to 4.7 percent at companies where women comprised 33 percent of senior leadership; and then jumped to 10.3 percent at companies where more than 50 percent of senior leaders are women compared with a 1 percent annual decline for MSCI ACWI index over the same period.
The report also finds that the market is willing to pay a 19 percent premium price-to-book multiple for the top 50 percent of companies with female CEOs. These companies show returns on equity (ROE) that are 19 percent higher on average and provide a 9 percent higher dividend payout.
Debunking the "Queen Bee" Myth
One of the report’s key focus areas centers on the much debated notion of a "Queen Bee" syndrome which argues that women in senior positions actively exclude other women from promotions into top management. The report’s findings dispute this and show that female CEOs are much more likely to surround themselves with other women in senior roles.