Progress on gender equality in leadership has never been linear. While the number of women in executive roles has risen steadily over the past decade, the pace remains uneven, particularly at the very top. Britain, for example, saw the number of female FTSE 100 chief executives dip below ten in 2024, a reminder that symbolic breakthroughs are still fragile. Yet, the weight of evidence continues to show that when women are present in leadership in significant numbers, businesses do not only gain in fairness, they gain in performance.
Research from McKinsey underscores this point: companies in the top quartile for gender diversity on executive leadership teams are 27% more likely to outperform their peers financially. The relationship is not anecdotal but statistically durable, observed across thousands of companies and multiple years of data. Bench International highlights the same pattern, noting that organizations with diverse boards are more resilient, more innovative, and better positioned for long-term value creation.
This evidence reframes gender diversity from a moral obligation into a strategic lever. As Ann Francke, chief executive of the Chartered Management Institute, has argued, gender balance is “an economic concern” as much as an equity one. The World Bank estimates that greater workplace equality could raise global GDP by 20%, a figure that no serious board can ignore.
The UK has made notable progress in board representation: women now hold 43.4% of FTSE 350 board positions, the highest proportion among the G7 after France. Yet the distribution of those roles reveals the work still to be done. Women are concentrated in functional posts such as HR and marketing, while profit-and-loss leadership, the common springboard to chief executive positions, remains largely male.
The Times’ reporting on the latest FTSE Women Leaders Review highlights this imbalance starkly. Over the past three years, the percentage of FTSE 350 chief executive positions held by women rose just five percent, and chairwomen increased by only one pecent. In other words, visibility at the board table has improved, but conversion into true decision-making power remains slow.
The financial uplift is not incidental. McKinsey’s analysis links diverse leadership to stronger governance, sharper risk management, and greater adaptability in times of uncertainty.
Companies with representation of women exceeding 30% on executive teams, placing them in the top quartile globally, are significantly more likely to financially outperform those with 30% or fewer. The business case has more than doubled in a decade: in 2015, the performance gap was 15%; in 2023, it reached 39 percent. Equally important, companies with low diversity are now at a measurable disadvantage, with outperformance likelihood dropping as the cost of homogeneity rises. The findings underscore that gender balance at the top is not symbolic progress but a structural advantage.
Diverse teams avoid the pitfalls of groupthink, engage in more rigorous debate, and bring a wider set of perspectives to strategic choices. Inclusive leadership reduces blind spots and expands the horizon of opportunity.
Examples from global markets show that companies with gender-diverse boards weather crises with greater resilience, in part because they reflect a wider base of stakeholders and are more attuned to social shifts. This resilience, in turn, drives investor confidence.
Despite the business case, progress is not guaranteed. Some UK organizations, as The Times notes, are reconsidering or scaling back female leadership programs, raising concerns about momentum. While progress is happening, it’s happening too slowly. Normalizing female leadership is critical if young women are to aspire to the top.
The risk is that diversity becomes a “tick-box exercise” rather than a cultural shift. True impact comes when boards see inclusion not as a side project but as integral to performance. That means sponsorship as well as mentorship, gender-aware recruitment, and senior leaders who role-model flexible working and equitable decision-making.
For boards and C-suites, the path forward is clear. Gender diversity should be treated as a strategic asset; planned for, measured, and reported with the same rigor as financial or operational performance. The Chartered Management Institute recommends using data to identify gaps, setting clear targets, and holding leaders accountable for results.
The pipeline of talented women is stronger than ever; the challenge is converting that pipeline into appointments at the very top. Doing so is not only fair, but it’s also smart business.
What this all comes down to is that boards that are gender-balanced are not just more representative; they are more effective. The uplift in financial performance is measurable, the governance benefits tangible, and the cultural impact profound.
In a global economy defined by volatility, resilience and innovation are at a premium. The organizations that will thrive are those that embrace inclusive leadership not as a statement of intent but as a cornerstone of strategy. Progress may still be patchy, but the direction is clear: the future of business is diverse, and the numbers prove it.
Sources:
McKinsey & Company. Diversity matters even more: The case for holistic impact. June 2023.
Bench International. The investment case for inclusive leadership: It’s time to walk the talk. 2025.
Hamilton, Jane. More work needed to ensure women take top jobs. The Times, March 6, 2025.
