If Kamala Harris becomes President, she will break the ultimate glass ceiling that remains intact in American governance despite other significant shatterings of the glass ceiling in various sectors. Currently, about a quarter of U.S. senators and governors are women, with roughly 10% of Fortune 500 companies being led by female chief executive officers.
For this analysis, the performance of ten women CEOs of large Fortune 500 companies was examined using three key criteria: return on equity, earnings growth, and stock performance in the latest year. Some of the notable companies with women CEOs include CVS Health Corp., Elevance Health Inc. (Anthem), General Motors Co., and Citigroup Inc., among others, each with varying levels of performance metrics.
Companies like General Motors, Elevance Health, and Progressive have shown impressive growth in earnings and stock performance under the leadership of women CEOs. Progressive has seen a significant 465% increase in profits in the past year, while Oracle Corporation under Safra Catz has achieved a 241% return on equity and a 59% jump in profits. However, Citigroup Inc. has struggled with a low return on equity and declining earnings under Jane Fraser’s leadership.
In terms of overall performance, the companies led by women CEOs showed an average one-year earnings growth of 51.5%, outperforming the S&P 500 average of 11.6% during the same period. While the S&P 500 had a higher return on equity of about 21% compared to the average of 17% for companies with female CEOs, the stock market performance slightly favored male CEOs with a 21% return compared to 15.4% for female CEOs.
Despite the success demonstrated by women CEOs in running large corporations, there still appears to be a slight bias in the stock market in favor of male CEOs. Nevertheless, the findings from this analysis highlight the fact that women are capable of successfully leading major companies and driving growth and profitability. The presence of women in executive leadership positions continues to be a crucial step towards achieving equality and breaking more glass ceilings in various industries.
