Data released today by the Workplace Gender Equality Agency (WGEA) shows that increasing the number of women in executive leadership positions, such as Directors, CEOs and Key Management Personnel, improves company performance, productivity and profitability.
WGEA has also found that there is a clear link between more women in leadership and a lower gender pay gap, even when the remuneration of those roles (such as for CEOs and Directors) is not included in the gender pay gap calculation.
WGEA CEO Mary Woolridge told Missing Perspectives: "There is an evidence base that links improvements on [company] performance and equality in leadership roles; it's a contributor to helping progress and initiatives take place."
Boosting women on boards could help reduce gender pay gaps
Board members are also not included in the WGEA employer gender pay gap calculations. However, data has shown that employers with a higher proportion of women on boards are more likely to have gender pay gaps in the neutral range.
Source: WGEA
Female CEOs linked to reduced gender pay gaps
CEO remuneration is not currently included in the WGEA gender pay gap calculation. However, there is a link between having at least one woman in the CEO position and a lower employer gender pay gap. The mid-point of employer gender pay gaps for employers with at least one female CEO is 5.4% compared to 10.9% for employers with no female CEOs.
Employers with more women in management have lower gender pay gaps
To no one's surprise, evidence suggests that a company's gender pay gap decreases as the proportion of women in management increases. WGEA has stated that the goal for employers should be gender-balanced in management, that is at least 40% women and men.
Employers with this gender-balance in management are twice as likely to have a neutral gender pay gap as employers with 0%-20% women in management.