Utilities that promote women to top leadership roles in their companies earn bigger profits than their peers. An Ernst & Young LLP study found that the World’s top 20 companies on gender diversity had an average return on equity of 8.5% percent versus 7% for the 20 least diverse. Despite these findings, the number of women board members shrank last year with the US utility companies lagging behind Africa and Europe at the board level.
According to the report, it will take 80 years to achieve gender parity. Allison Kay, a global power and utilities leaders in EY London noted that 24 more women would need to be appointed as chief executive officers or similar positions for every five percent increase in the boardroom.
For more on findings from the EY report on gender diversity and business performance http://www.bloomberg.com/news/articles/2015-03-30/utilities-promoting-women-outperform-peers-ernst-young-says
Corporate gender diversity goes beyond ensuring female representation on boards or having a female CEO or Managing Director. To fast-track the 80 year countdown to gender parity, companies have to make definitive long-term commitments to building a robust pipeline of female leaders. It means being proactive and conscious of gender choices while recruiting, developing and promoting women at all levels. Organizations need to have the right resources and programs in place to support the move advancement of women in corporate leadership roles and these initiatives need to be deeply integrated into the company culture.AAG Perspective