Finance remains one of the strongest routes to leadership for women, and financial acumen is among the clearest, most evidence-backed drivers of advancement.
Elissa Sangster
CEO, Forté Foundation
I’ll be honest: Finance has been a hard sell for women for decades. From movie portrayals to the wild stories of Wall Street, women in the world of finance are usually depicted as either brainless accessories to powerful men or heartless executives who are married to their careers. These stereotypes make it hard for smart, passionate women to see themselves thriving in a traditional finance career.
Corporate firms also have a lot of work to do to create the kind of culture women seek. Their actions don’t always align with the best practices we know support recruiting, retaining, and advancing women, as recent return-to-office initiatives have made clear.
Financial acumen is an advantage
Despite these obstacles, the reality is that finance remains one of the strongest routes to leadership for women. Financial acumen gives women a big advantage. It’s one of the clearest, most evidence-backed drivers of advancement into the most senior levels of leadership. The management pathways with profit and loss (P&L) responsibility, often called “line roles,” are more likely to lead to the C-suite. Men are more likely than women to report having managed a P&L. At the early executive level, 81% of men versus just 63% of women have P&L responsibility. For women, early P&L management means more opportunity for both senior-level roles and compensation.
From CFO to CEO
The Chief Financial Officer (CFO) role has recently been a strategic stepping stone for women on the path to Chief Executive Officer (CEO). Ten percent of women CEOs in the S&P 500 served as CFO immediately before becoming CEO, compared with 6% of men, meaning the CFO credential helps women make the final move to CEO. An analysis of Fortune 500 companies found an average 6% stock price boost following the appointment of a woman CFO, evidence that markets view these leaders as strategic catalysts. When women lead in finance, the impact is visible and measurable.
Why the M.B.A. matters
The exposure to finance, both as a field of study and a career path, is a major reason we’re so into the Master of Business Administration (M.B.A.) degree. Women who pursue an M.B.A. earn much more than a degree; they earn the authority and credibility to seamlessly move into roles with P&L responsibility, gain economic mobility and stability, and move into the highest levels of business leadership. They also gain a diverse network of business leaders and alumni, giving them unique access to mentors and sponsors, which are critical to women’s careers. Of the women CEOs leading Fortune 500 companies, approximately half have an M.B.A. or equivalent degree. It’s one of the most reliable accelerators for women who want to lead.
Being underrepresented in any field is challenging, but the opportunities for women in finance are real, and so many incredible women have built rewarding, high-impact careers. We need more women to join them to see positive, sustained changes to the industry, so the question is: Why not you?
