Well, for their companies anyway.
The Senate Joint Economic Committee’s 2010 report says that, though women are still only getting 77 cents to the dollar of a man, they’re actually earning their companies much more.
Invest in Women, Invest in America: A Comprehensive Review of Women in the U.S. Economy, the 256 page compendium the committee released, explains that though women make up half of the U.S. workforce and more than half of graduates from institutions of higher education, “gender leadership and pay gaps are alive and well.” And it’s not doing anyone any good. Companies with the most women on their boards post 66% higher returns on invested capital, and 42% higher returns on sales than companies with the fewest women. Fortune 500 companies with women in senior roles consistently outperform their competitors.
Carolyn B. Maloney, chair of the Join Economic Committee says, “As America steers its way out of the Great Recession, women’s participation in the labor market, leadership in corporate boardrooms, and power over household purchases will be critical for economic growth. When we invest in women, we invest in the future of our economy.” Well, duh, but it’s still nice to have it be reinforced.
After studying 800 companies, the Senate report concludes that equal gender representation helps the success of a company because, “women are active role models, women set achievable expectations, women reward accomplishments, and women encourage others to contribute.” So basically being nice can be profitable. While what Frankel told us about “nice girls” is still valuable it may need to be updated, because being nice, as the Daily Worth said, “is actually powerful and profitable.” So, to all of you companies lacking in female leadership (unlike BUST), I hope to see some lady love going on pretty soon!
[Photo from The Performance Magazine]
The opinions expressed on the BUST blog are those of the authors themselves and do not necessarily reflect the position of BUST Magazine or its staff.
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