Death to the Queen Bee: Women Hire and Promote More Women

Companies with female executives in decision-making roles generate stronger market returns and superior profits, according to “CS Gender 3000: Progress in the Boardroom,” a report from the Credit Suisse Research Institute (to which I contributed). The report also proves a thesis of my book, Stiletto Network, demonstrating that when women are in true positions of power, they hire and promote other women, as opposed to excluding them.

Contrary to the “Queen Bee” stereotype, new evidence shows that female CEOs are much more likely to surround themselves with female leaders. Women CEOs are 50% more likely than male CEOs to have a female CFO and 55% more likely to have women running business units. This holds true in venture capital, start-ups, and microfinance, as well as in the corporate world. While female representation in in venture capital partnerships remains low, VCs co-founded by women have a much higher percentage of female partners than the industry average (43% vs. 7-8%). Additionally, female-founded VCs invest more in women entrepreneurs, with 17.4% of funding rounds going to female-owned startups versus the industry average of 12%.

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I went to an all-girls Catholic high school, so naturally if your friends are women—you laugh at the same jokes, you have a lot in common—those are the people you’ll think of. I can name dozens of women I know, like, and interact with, and of course I would recommend them if I thought the chemistry was right… I’m just trafficking in logic patterns, recommending professionals for professional reasons. And a lot of times they happen to be girls.”

Cristina Morgan, Vice Chairman, Investment Banking at JP Morgan

Stiletto Network (Page 118)