Creating executive finance positions for women: leadership roles must become more accessible

3 min read

Let’s be honest—women often get the short end of the stick in management positions. The situation for women leadership in finance is particularly dire. While they make up around 46% of employees in the finance sector, only 15% occupy executive roles. In 2019, the Deloitte Center for Financial Services reported that six out of 107 financial institutions in the United States had female CEOs. That’s not good enough.

The statistics do show it’s possible for women to get a foot in the door. But rising through the ranks? Not so much. So let’s answer the question—why is female leadership so uncommon?

Inequality in numbers for women: leadership roles are still uncommon

Company diversity is a hot topic worldwide. Yet only 4.9% of senior roles in venture capital firms belong to women. In private equity, only 10% occupy senior roles. Why?

The problem is cultural. More men study finance than women—but there’s an even bigger discrepancy in faculty. Only about 16% of those teaching finance in higher education are women. That bleeds into the culture of the finance industry. A recent article by Women + Money investigated how female leadership therefore suffers in a male environment due to ingrained cultural differences.

So it’s unsurprising that women report more burnout than men. A survey by Oliver Wyman showed that by 2016, sexism in finance offices had barely changed across 30 years. The firm’s 2020 report on the same topic noted that, while the number of women in finance is on the rise, it’s still not high enough. So, what is the way forward?

Female leadership makes teams stronger: let’s make that well-known

We need to publicize the statistical benefit of having female leaders. An article from HEC Paris showed private equity teams with at least one woman will outperform all-male teams. So if the studies show women’s leadership in finance boosts results, we need to make that known. This in turn changes narratives that influence female promotion to executive positions.

What’s more, Investment Executive found racial and gender diversity both improved results and upped employee happiness. The conclusion? Gender diversity in finance isn’t just a moral benefit—it’s an economic one, too.

Nurturing women’s leadership at IE University

At IE University, we’re dedicated to making lasting change in finance. That’s why we’ve established the IE Women’s unit to drive societal transformation. We’ve outlined three ways to uplift women in our community: connecting with yourself, connecting with your community and connecting with the world. We provide the tools women need to understand their strengths and weaknesses, which emboldens self-awareness and industry expertise across the world. You can experience various events, internships and conferences to understand how we’re making this change.

We remember Kerri Gohman, president of Xero Americas, describing how she allowed herself to become the boldest version of herself. She began taking risks, becoming more powerful and unleashing her real capacity. This was the difference that set her up to become a woman in leadership. And that’s exactly the philosophy we believe in: creating the Next Best You.

It’s a long-term plan, but it’s necessary to make women leadership more prevalent. If you’re female-identifying and looking for a Master in Finance that will set you up C-suite positions, we suggest you fill an application for the IE School of Politics, Economics and Global Affairs. It might just be the most impactful thing you do today.