Women at the Helm: Investing in Leadership

Carly Esterhuizen, our VP of Brand, searches for women-led US listed companies and examines the impact of female leadership on a company's bottom line.  

A couple of years ago everyone who works at Purple Group (we call ourselves Purplistas) underwent a team building day to help us transition to an agile way of working. One of my biggest take outs from that day was the idea that the more diverse inputs you have in a team, the stronger and more successful your project will be.

As we enter Women’s Month I got to thinking about the role of women in leadership positions at listed companies, and how this dynamic plays out in profit making and share price growth.

A study by the Credit Suisse Research Institute in 2021 showed that companies with more women in senior management and on their boards tend to perform better financially. Companies with at least 30% female leadership were found to have higher net profit margins and better stock performance than those with less diverse leadership.

Another study by the Boston Consulting Group in 2018 found that companies with more diverse management teams have 19% higher revenue due to innovation. This just highlights that gender diversity is a propeller of enhanced innovation and improved financial performance.

So I went looking for US companies with female leadership to see how I could support women blazing a trail for the rest of us, while potentially profiting off of their success.

Here’s what I found:

Note that all information below was as at the time of writing and that past performance does not guarantee future returns.

General Motors

Since Mary Barra became CEO in January 2014, GM has seen significant improvements in its financial performance. Under her leadership, GM's stock has generally performed well, contributing to increased shareholder value.

AMD

When Dr. Lisa Su became CEO in October 2014, AMD was struggling financially. Under her leadership, AMD's financial performance improved dramatically. The company's stock price increased significantly, reflecting robust revenue growth and improved profitability. AMD's market capitalization grew from around $2 billion in 2014 to over $150 billion by 2023.

Oracle

Under Safra Catz’s leadership, Oracle has seen a steady increase in its financial performance. She has focused on improving profit margins and maintaining a strong balance sheet, which has helped drive Oracle’s stock price higher.

General Dynamics

Phebe Novakovic has been instrumental in steering General Dynamics toward significant growth and stability since she became CEO in January 2013. The company has maintained strong revenue and profitability, with revenues increasing from $31.5 billion in 2012 to over $39 billion in 2022. The company’s stock has also performed well, reflecting investor confidence in her strategic direction.

Nasdaq

Adena Friedman’s tenure as CEO of Nasdaq since January 2017 has brought numerous benefits to the company. The company's revenue and earnings have increased consistently, reflecting strong performance across its various business segments. This has also positively impacted Nasdaq's stock price, which has seen considerable appreciation during her time as CEO.

Ross Stores

Barbara Rentler has led Ross Stores as CEO since June 2014, significantly contributing to the company's growth and success. The company’s revenues increased from $11 billion in 2014 to over $18 billion in 2022. This consistent revenue growth has been reflected in the company's stock performance, which has seen significant appreciation, demonstrating investor confidence in her management​.

PepsiCo

Ramon Laguarta is the current CEO, but the former CEO Indra Nooyi was a notable woman leader. Under her leadership, PepsiCo’s revenue grew by more than 80%, and the company's market capitalization increased from $84 billion to $165 billion. She delivered an annualized total shareholder return of 9% during her tenure.

We also recently wrote about some woman-led companies in Africa, you can check that out here.

What other female CEO's should I be following? let me know on X: @sharegalcarly