Companies with the highest proportion of women in senior management have better return on equity and total returns to shareholders, according to the President of IT suppliers’ association Intellect.
Intellect – whose 800 member companies contribute about 10% of UK GDP and employ more than one million people – goes as far as to quantify the difference women make in running companies. Its first President’s Report – announced at the Intellect annual dinner at the Dorchester last week – said the return on equity is 35.1% higher and total return to shareholders is 34% higher where companies have the highest proportion of women in senior management. And female chief executives or board directors add a 10% return on capital, says Intellect.
All this explains why Intellect is worried about the gender imbalance of those taking degrees in computer-related sciences. The report, which is introduced by Sean Finnan, President of Intellect, said:
“With over 140,000 new entrants new entrants needed every year, the gender imbalance in those taking computer science-related degrees and in the technology sector in the UK is one of ther worst in Western Europe.
“In 2007 only 18% of IT and Telecoms professionals were female. This number is particularly worrying when numerous reports show that companies with the highest proportion of women in senior management experience better financial performance for both return on equity (which was 35%.1 higher) and total return to shareholders (which was 34% higher), with female chief executives or board directors adding a 10% return on capital.
“With the sector struggling to recruit new talent, the gender imbalance remains a significant and worsening issue.”
Finnan delivered his speech at the Dorchester to a male-dominated audience.