Businesses with Varied Gender Compositions
In the world of business and politics, the strides made by women in leadership roles are becoming increasingly noteworthy. Maya Bhandari, Asset Allocation Portfolio Manager, has highlighted the exemplary leadership shown by women such as New Zealand's Prime Minister Jacinda Ardern, ECB President Christine Lagarde, and US Treasury Secretary Janet Yellen, particularly during the ongoing crisis.
The success of New Zealand's approach to the pandemic has been widely praised, with Bhandari singling it out as one of the most effective. Meanwhile, in the UK, the FTSE 350 index has seen significant progress in gender diversity at board and senior leadership levels. As of 2025, women hold approximately 43% of board positions and 35% of senior leadership roles within these companies, reflecting a positive trend towards gender equality.
This progress is part of a broader trend that has seen gender diversity initiatives meet and surpass earlier targets. For instance, the UK's FTSE 100 and FTSE 250 companies have seen an increase in the number of women in board and leadership positions over the past five years, according to Sonal Sagar, UK Sustainable Equities Portfolio Manager.
However, when it comes to the representation of women as CEOs, the numbers remain much lower. Only 19 FTSE 350 companies are currently led by female CEOs, which is a small fraction relative to board and senior leadership roles. This disparity between women’s presence on boards and in senior leadership versus the highest executive leadership role of CEO suggests that more work is needed to bridge the gap.
In terms of new board appointments, about 50% of the FTSE 350 directors appointed in 2024 were women, demonstrating ongoing momentum towards gender balance in board membership. Additionally, 26% of board placements were first-time appointments in 2024, indicating fresh opportunities for diverse talent.
Across the Atlantic, the US has faced challenges in terms of women's participation in the labor market. Melda Mergen, Deputy Global Equities Head, has reported that the COVID-19 pandemic has disproportionately affected women in the US labor market, with the women's participation rate falling to 57%, the lowest since 1988. Mergen emphasises the importance of women playing a crucial role in the economic recovery to avoid negative consequences not just for markets, but also for families and society as a whole.
The US Treasury, as mentioned by Bhandari, has played and continues to play a central role in helping the economy recover. Europe, too, has made significant strides in fiscal integration, with strong support from the ECB, according to Bhandari.
Tammie Tang, Threadneedle Lux European Social Bond Fund Portfolio Manager, has noted that while significant progress has been made towards inclusion and diversity, gaps remain wide in areas like women's labor force participation and their representation in politics. According to a World Economic Forum projection, it could take another 99 years to achieve gender parity at the current pace, not accounting for the pandemic's significant setbacks.
In conclusion, while the FTSE 350 shows solid progress in gender diversity on boards and senior leadership, women’s presence as CEOs remains relatively limited. This underscores the need for continued efforts to bridge the gap between representation and top executive leadership. The ongoing challenges faced by women in the labor market, particularly in the US, further emphasise the need for collective action towards achieving gender equality.
- In the realm of personal finance and wealth management, it's crucial to invest in education and self-development to foster sustainable careers, especially for women aiming to scale up the business and political ladder.
- Family dynamics often provide unique perspectives on financial matters, which can be harnessed for shrewd insurance planning, ensuring the security and wellbeing of loved ones.
- When managing one's lifestyle naturally, a strong relationship with personal finance becomes evident, as the ability to make sound financial decisions becomes second nature and contributes to long-term prosperity.
- As more women secure significant leadership roles in finance, business, and politics, there's an opportunity for them to champion the cause of career development, ensuring equitable opportunities and fostering gender diversity in these sectors.
- In the world of investment, focusing on diverse portfolios, including companies with strong gender diversity initiatives, can lead to improved financial returns and contribute to a more inclusive global economy.
