London Daily

Focus on the big picture.
Thursday, Jul 02, 2026

Companies with female leaders outperform those dominated by men, data shows

Companies with female leaders outperform those dominated by men, data shows

Labour’s Anneliese Dodds says women should play a central role in the UK’s post-pandemic economic recovery
Women should play a central role in the UK’s post-pandemic economic recovery, with evidence revealing companies with more female leaders outperform those dominated by men, according to House of Commons research.

Accusing the government of ignoring women’s needs during the coronavirus pandemic and side-lining them in plans for recovery, the shadow secretary for women and equalities, Anneliese Dodds, said the data showed women held the key to a stronger economy, but they were being held back by a lack of investment and the risk of “childcare deserts” in parts of the country.

“When you’ve got more engagement from women, when women are in the driving seat to the extent they should be, it makes for far more successful businesses,” she said. “Our commitment is to consider women’s concerns and other equality issues from the start. The problem with the current government is they’re not even tacking women’s concerns on at the end, they’re not considering them at all.”

She warned that the UK was facing a “childcare emergency” with early years settings struggling to recruit staff and the Early Years Alliance reporting that some areas of England have seen a 25% decline in the number of places in the past six years.

“The childcare sector is facing a short-term emergency, seeing childcare deserts in different parts of the country, with providers going bust and not being able to continue operating – that has an awful impact on working women,” said Dodds. “Childcare providers are part of our economic infrastructure, we have to find a more sustainable way forward.”

To mark International Women’s Day, which is on Tuesday, Labour have collated data from the House of Commons library. It cited McKinsey research that shows companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the bottom, while companies with more than 30% female executives were more likely to outperform companies that don’t, according to research from academics from the Universities of Glasgow and Leicester.

But only eight women, and no women of colour, are currently employed as CEOs in the FSTE 100, while women hold only 14% of executive directorships and 38% of all directorships, according to the Fawcett Society’s Sex and Power report 2022.

The data shows that women-led SMEs contribute about £85bn to economic output, but Beis research shows that only 16% of small business employers and one in three of entrepreneurs are women. There is further evidence that fewer women get access to financing and business loans, with only 15% of bank financing applications and 22% of new primary business bank accounts openings coming from women.

Dodds said Labour would create 100,000 government-backed start-ups with a “equal recovery pledge” ensuring female representation, strengthen the pay gap reporting system and give a “new deal” for working women.

“​​Unless we actually back women in business, then we’re going to be losing out on a huge amount of potential extra economic activity and prosperity, that all of our communities really need,” she said.

New global data from gender equity researcher Equileap, released for IWD, shows that in the UK, women make up only a fifth (20%) of executive team members, 13 companies (6%) have a female CEO, and 27 companies (13%) have a female CFO.

NatWest is the only company with both a female CEO and CFO. The analysis also found that the UK is one of the worst performing countries on flexible work options, with only 29% of companies publishing a flexible hours policy, and just 18% publishing a flexible locations policy.
Newsletter

Related Articles

0:00
0:00
Close
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
KEIR STARMER ANNOUNCES £15 BILLION DEFENCE TECHNOLOGY BOOST IN FINAL MAJOR POLICY MOVE
ANDY BURNHAM SIGNALS STRICT FISCAL RULES AS LABOUR LEADERSHIP RACE SHAPES MARKET OUTLOOK
POUND STERLING HITS ONE-YEAR HIGH AS BANK OF ENGLAND SIGNALS NO IMMINENT RATE CUTS
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
×