Gender-balanced companies outperform less equal ones

A BlackRock study of 1,250 of the world's largest companies revealed that over the past decade, those with the most equal gender balance achieved a 7.7% average annual return on assets (RoA). In contrast, companies with the highest share of men delivered a 5.6% RoA, while those with the highest share of women returned a 6.1% RoA.

Companies with female CEOs outperformed those with male CEOs by 1 percentage point, reflecting a pattern observed in other domains such as hedge funds and start-ups.

In the world of hedge funds, women-owned funds outperform male-led ones by 10.5%. Similarly, in start-ups, female CEOs delivered twice as much return on investment as their male counterparts.

BlackRock's study also found that US firms with longer maternity leaves outperformed those with shorter ones. This finding suggests that supportive workplace policies that promote work-life balance can contribute to gender equality and, ultimately, financial success.

The global gender gap in economic participation and opportunity has closed by 60.1%. However, at the current rate of progress, it will take 169 years to close entirely. Accelerating progress requires concerted efforts from businesses, governments, and individuals to create a more equitable world where women have equal opportunities to thrive and contribute to economic growth.