Why Are So Few Women in Leadership Roles?
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Women are underrepresented in management.
Men hold 62% of manager-level positions.
According to an article published November 20, 2018 by the Center for American Progress, women are a majority of the U.S. population (50.8%). They earn a higher percentage of undergraduate and master’s degrees than men (but only 38% of MBA degrees).
In the financial services industry, “they constitute 61% of accountants and auditors, 53% of financial managers, and 37% of financial analysts. But they are only 12.5% of chief financial officers in Fortune 500 companies.”
Women account for less than 20% of all advisors.
It’s even worse in mutual fund families. Women manage only 2% of all assets and the proportion of female portfolio managers declined to 9% from 10% from 2009-2015, “despite the fact that women managers outperform their male counterparts, according to Morningstar.”
As of May, 2020, only 7.4% of the CEO’s of Fortune 500 companies were women.
The gender gap extends to pay. Women with MBAs earn 74 cents for every dollar earned by men with the same degree.
Benefit of having women in leadership positions
There’s ample evidence of the benefits of having women in leadership positions.
They score higher on tests designed to measure emotional intelligence, which is considered crucial for effective leadership and business performance.