OneStream, a finance management software firm, has released a new study on women chief financial officers. Titled “The Glass Chair,” the report explores performance trends among women CFOs, the pathways men and women take to senior finance roles, and the impact of greater gender equity in finance leadership. The study draws from economic analysis of publicly traded companies in the U.S., the U.K., and Europe; LinkedIn data analysis of CFOs’ careers; and opinion research from 700 finance professionals.
Although less than a quarter of CFOs in Global 500 and FTSE 100 companies are women, firms with women in the top finance position bring significant value to their companies. According to the report, organizations currently with a woman CFO achieve an average annualized total shareholder return of 4.5 percent – some 0.2 percent higher than industry benchmarks.
This high performance could be due to women CFOs often having more experience than their male counterparts. On average, it takes a woman 18 years to reach the top finance position – three years longer than their peers. Additionally, women CFOs are more likely to have taken a non-traditional path to their position, such as prior work in regulatory compliance, risk management, technology, or data science, resulting in more diverse experience and skills.
Among women who have reached the CFO position, many cite several structural barriers that slowed their progression. The most commonly reported challenges include economic downturns, organizational politics, lack of access to mentorship, skills gaps in the finance department, and difficulties maintaining a work-life balance. When reflecting on factors that contributed to their success, women CFOs were most likely to say commitment to continuous professional development, networking opportunities, transparent promotion processes, mentorship, and technological advancements were the biggest proponents leading to their professional achievements.
“When women reach the CFO seat, they outperform benchmarks, accelerate digital transformation, and bring the skillsets businesses need to thrive in an uncertain future,” writes Pam McIntyre, senior vice president at OneStream Software. “This report serves as a call to action for all companies: advancing women into CFO roles enhances innovation, competitiveness, and modernizes a critical business function: Finance.”