By Becca Lipman
It has been said, “behind every great man there’s a great woman.” Apparently the same can be said of corporations. As it turns out, large companies with female CEOs are outperforming those with men.
Data is limited – In 1996 there was only one woman CEO in the Fortune 500 companies. As of 2010, 15 companies on the Fortune 500 were run by women, and by 2011 that number dropped to 12, and 14 in the Fortune 501-1000 category. Yet an interesting trend is emerging…
According to USA Today, “Fortune 500 companies that had a woman at the helm for all of 2009 were up an average 50%.” According to Forbes: “as a group they outperformed the overall market–companies dominated by male chief executives–by 28%, on average, and topped their respective industries by 15% [in 2010].”
A 2007 research report by Catalyst. Inc “shows that among Fortune 500 companies, those with the greatest number of women on their boards performed significantly better financially than companies with fewer female board members.”
Female CEOs will quickly deny their sex has any correlation to their performance, and indeed it is a stretch, but they can’t deny the fact that their companies have consistently outperformed market averages.
“Women tend to be more risk adverse,” Susan Cabera told USA Today. She further pointed out that “women who reach the top also have to be more exceptional than the average CEO.”
Still, there are 47 companies, or 9.4 per cent of the S&P 500, that have no women on the board of directors at all, according to Bloomberg Rankings. Shocking?
Shareholders, pay attention: We’ve compared the performance of the 12 current fortune 500 companies with women CEOs to the S&P500 performance and their industry competitors. Correlation and causation aside, the trend holds true: girls have been ruling the stock market over recent weeks.
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1. Archer Daniels Midland Company (ADM): Farm Products Industry. Market cap of $19.42B. Current price at $30.9. Quarterly performance at 16.22%. Patricia Woertz became CEO in May of 2006 and was formerly a Vice President at Chevron Corporation. In 2010 she was ranked 3rd most powerful women by Fortune. Magazine, and 93rd in Fortune 500’s list of top CEOs. The stock has lost 16.3% over the last year.
2. Avon Products Inc. (AVP): Personal Products Industry. Market cap of $12.36B. Current price at $28.49. Quarterly performance at 5.55%. Andrea Jung has been CEO since September 2001. She was previously the Executive Vice President for Neiman Marcus. She is also a director of Apple Inc, and General Electric. The stock has gained 3.75% over the last year.
3. BJ’s Wholesale Club Inc. (BJ): Discount, Variety Stores Industry. Market cap of $2.75B. Current price at $50.42. Quarterly performance at 15.37%. Laura Sen has been CEO since January 2008 and previously served as BJ’s Executive Vice President of Merchandising and Logistics. The stock has gained 2.42% over the last year.
4. EI DuPont de Nemours & Co. (DD): Conglomerates Industry. Market cap of $51.86B. Current price at $55.18. Yearly performance at 59.09%. Ellen J. Kullman has been CEO since January 2009. She previously served a president of Dupont. She is a director of United Technologies Corporation and on the board of Tufts University. She previously served as a director of General Motors. The stock has had a good month, gaining 11.04%.
5. KeyCorp (KEY): Money centre Banks Industry. Market cap of $7.97B. Current price at $8.28. Quarterly performance at 3.84%. Beth E. Mooney has been CEO since May 1, 2011. She previously served as Chief Operating Officer and Vice Chairman of the Board. The stock has lost 6.37% over the last year.
6. Kraft Foods Inc. (KFT): Food Industry. Market cap of $63.16B. Current price at $35.68. Quarterly performance at 28.32%. Irene B. Rosenfeld was appointed CEO in June 2006, and chairman of the board in March 2007. The stock has gained 14.14% over the last year.
7. Pepsico, Inc. (PEP): Beverages Industry. Market cap of $111.47B. Current price at $69.62. Quarterly performance at 13.52%. Indra Nooyi was appointed CEO in October 2006 and has previously served in a number of executive positions within PepsiCo and Asea Brown Boveri Inc., and Motorola Inc. The stock has gained 8.04% over the last year.
8. Sunoco, Inc. (SUN): Oil & Gas Refining & Marketing Industry. Market cap of $5.19B. Current price at $42.25. Quarterly performance at 28.69%. Lynn Elsenhans has been CEO, president, and a director of Sunoco since August 2008. The stock has lost 5.76% over the last year.
9. The TJX Companies, Inc. (TJX): Department Stores Industry. Market cap of $21.23B. Current price at $55.1. Yearly performance at 34.19%. Carol Meyrowitz was appointed CEO, since January 2007 and a director since September 2006. She also served as President, Senior Executive Vice President, and Executive Vice President of TJX companies. She is also a director of Amscan Holdings, Inc. and Staples, Inc. and was a director of The Yankee Candle Company, Inc. from 2004 to 2007. The stock has had a couple of great days, gaining 5.73% over the last week.
10. WellPoint Inc. (WLP): Health Care Plans Industry. Market cap of $28.74B. Current price at $77.57. Quarterly performance at 58.06%. Angela Braly was appointed CEO in June 2007, and Chairman of the board in March 2010. Previously she served as Executive Vice President, General Counsel and Chief Public Affairs Officer. She also served as CEO of Blue Cross Blue Shield of Missouri and has been a director of The Procter & Gamble Company (consumer products) since December 2009. The stock has gained 14.06% over the last year.
11. Xerox Corp. (XRX): Business Equipment Industry. Market cap of $14.96B. Current price at $10.6. Yearly performance at 32.84%. Ursula Burns joined Xerox in 1980 and worked her way up to the CEO spot in July 2009, and Chairman of the Board in May 2010. The stock has had a good month, gaining 11.72%.
12. Yahoo! Inc. (YHOO): Internet Information Providers Industry. Market cap of $20.60B. Current price at $15.55. Yearly performance at 8.29%. Carol Bartz is President, CEO and director of Yahoo! Inc. She was appointed in 2009 and previously served in various executive positions for the company. She also serves as a director of Cisco Systems, Inc, the National Science and Technology Medals Foundation, and Paley centre for Media. The stock has had a couple of great days, gaining 6.18% over the last week.
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