New study links separate business units to higher rates of female CEOs
A University of Massachusetts Amherst study published in the Strategic Management Journal finds that company structure affects the promotion of women to CEO roles.
Structure impacts promotion chances
Research shows women managers advance more often at firms with separate business units than at single-standalone entities. These divisions have their own revenues and costs, which makes performance easier to measure objectively. The study suggests accounting methods reduce the room for subjective bias in executive decisions.
Current leadership numbers remain low
Women currently hold fewer than 10 percent of CEO positions within S&P 500 companies despite recent gains. Lead author Ulya Tsolmon notes that the gender gap represents a huge disparity in major US firms. Data from 2015 indicated more men named John ran these companies than women did.
Accounting reduces subjective judgment
Managers running divisions with profit-and-loss statements face measurable results that are hard to credit to others. This clarity makes it easier to identify who has led a specific unit successfully. The findings point to accounting practices rather than company culture as the primary explanation.
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