![]() Previous studies of CEOs have similarly found that women in the top job have more diverse experience than their men counterparts. The share with a non-finance degree is higher in the US (50%) than in Europe (33%) and Asia-Pacific (17%). Women CFOs are more likely than men CFOs to have graduated from college with degrees in disciplines other than finance (32% versus 25%). Globally, approximately 16% of women CFOs did not hold a finance role immediately prior to becoming CFO, and approximately 58% have worked less than five years in finance in the same company. ![]() More women than men have worked in areas other than finance before serving as CFOs. Our study also found gender differences in career paths. The difference is greatest in Europe: 56% of women CFOs are externally hired, versus only 22% of men CFOs. Globally, approximately 37% of women CFOs were externally hired, versus approximately 27% of men CFOs. However, companies seem to be more open to bringing in women CFOs as external hires, which may reflect an absence of candidates within the company. Most of today’s CFOs-men and women-are “homegrown,” having been promoted to the role within their company. Companies in Singapore and China had the largest share among the Asia-Pacific firms we analyzed. Among European companies, we found the highest percentages in Belgium, the Netherlands, and the UK. The percentage is slightly higher for European companies than for those in the US and Asia-Pacific. Of the 150 public and private companies we analyzed globally, only 13% have a woman CFO. (See Exhibit 1.) Women CFOs Are Rarities and Often External Hires with Varied Backgrounds More than one-third of women and men finance professionals said that there are obstacles to gender diversity and inclusion in their company relating to leadership commitment, recruitment, retention, and advancement. Approximately 17% of women finance professionals say that their direct manager doesn’t help them to develop their full potential, versus only 11% of men finance professionals. They also want access to someone more senior who provides advice and actively supports their career. More than one-third of women finance professionals see room for improvement in how they experience day-to-day work-especially when it comes to having their perspectives recognized. However, 45% do not view the executive leadership team as committed to DEI. Approximately 54% of finance professionals confirm that their company has programs, initiatives, or activities to promote gender diversity. Our study included analyses of data on diversity, equity, and inclusion (DEI) from BCG’s Diversity and Inclusion Assessment for Leadership (DIAL) database and the backgrounds and career paths of major companies’ CFOs. Given their mandate to improve corporate performance and lead transformations, current CFOs can play a crucial role in designing and accelerating these efforts.Ī New Study Details the Gender Inequality in Finance ![]() To sustain the improvements, companies must embed gender diversity in the organization’s culture. This requires new initiatives that promote not only the recruitment of women but also their retention and advancement. To capture these benefits, it is imperative that companies increase the share of women in finance leadership positions and give junior employees better exposure to them as role models. Additionally, we have found that women in finance functions are more likely than men to have multidisciplinary backgrounds, potentially enhancing their abilities to lead enterprise-wide transformations. Previous studies by BCG and other organizations show that a more balanced share of women, especially in senior positions, boosts innovation, resilience, and financial performance, among other benefits. ![]() The scarcity of women finance leaders hurts companies. Our study points to several root causes, including an insufficient leadership commitment to diversity, absence of role models, and a lack of inclusiveness. The discrepancy is even greater for the function’s top job: only 13% of the companies we studied have a woman CFO. A new BCG global study finds that, despite gender parity in these functions, women hold only about one-third of the senior finance positions. Women are significantly underrepresented in the leadership of finance functions.
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