How to Fix Markets' Poor View of Women Corporate Leaders - Building Gender Balanced Business

• The latest evidence that markets fundamentally misunderstand women’s corporate abilities is raising not a few eyebrows. After all, it violates a fundamental of capitalism that share prices should fall even as women prove better in boardrooms or C-suites than men at the main measurements of corporate performance.

• The explanations abound: Investors like macho industries, which of course are among the least likely to have women in top roles; the appointment of a woman as chief is often associated with radical change, which in turn is something companies usually avoid unless in dire straits; and that very association with the “glass cliff” means some women leaders do indeed fail.

• But if actual fault lies with shareowners, Ruth Sunderland writes in The Guardian, the underlying cause of such self-defeating activity is the continued discrimination and tokenism women suffer in the corporate world. “A real cultural change can take place only when representation reaches critical mass.”

• Besides such strong intervention as quotas, à la Norway, or positive discrimination, possible remedies could start with:
  Establishing target levels for female candidates on appointment longlists and shortlists.
  Embracing family-friendly work policies to vastly improve talent pipelines (and not just for women).
  Setting up gender pay audits.
  Monitoring closely targets for female representation at each management tier.

The Guardian column