Gender Diversity and Performance
Countries with female leadership appear to have navigated the COVID-19 crisis more successfully than those with a less diverse leadership structure. Not only did they more effectively combat the pandemic, but they also maintained more stable societies than some other countries without female leadership. Are there parallels in the corporate world? Do companies with a higher gender diversity also perform better than corporates with homogeneous structures?
In the U.S., gender diversity as a strategy has already been implemented by some companies, allowing for a comparison of the performance to similar firms without any or with poor gender diversity protocols. For other regions, there were often not enough corporates with a good equality grade to successfully draw any conclusions.
The following analysis relies on the Solactive GBS U.S. All Cap Index, which contains about 2,000 U.S. companies. Using this broad market index provides a holistic view, allowing for an assessment of the quality and the performance of the ESG gender diversity scores. The analysis is based on data spanning 2016 to 2020.