Want to make more money? Hire more women executives.
According to Bank of America Merrill Lynch, companies with female executives make more money. In an article published by BusinessInsider, BAML's solution for boosting your bottom line is to appoint more women to executive positions. Women have experienced a defined difference in inequality, particularly the wage gap. This year, we've seen countries such as Iceland and the UK promote national initiatives to close the wage gap, leading to financial benefits across the world. Now, we're learning that not only paying women equally can result in financial benefits, but having women lead companies can as well.
According to BAML, S&P 500 companies where at least one-quarter of executives were female, generated higher one-year returns on equity than the overall index, over the past seven years. BAML also cites a McKinsey study that found companies that were in the top 25% for gender diversity were 15% more likely to see their operating income exceed the industry median.