Women In Technology Leadership: A Fresh Look At Bias

It’s an exciting time to be in high-tech. In the fast-paced world of a high-growth tech company, change is a constant in almost every aspect of the business.

But there is one characteristic of Silicon Valley that does not seem to be changing ― the decidedly small number of women in leadership roles in tech companies. A 2016 study by Fenwick and West showed that the largest 150 Silicon Valley public companies averaged only 14% women directors and an average of only 0.8 women executive officers.

Although debates about the gender gap within technology companies tend to become mired in identity politics and focus heavily on moral issues and notions of equality, there is a more pragmatic issue for shareholders and investors – the gender gap is bad for business.

Diversity improves financial outcomes

The correlation between having women in leadership roles and improved financial outcomes has been well-studied. Over a decade ago, a Catalyst studyfound that, among F500 companies, having women in leadership roles was associated with a 35% increase in the return on equity and a 34% increase in total return to shareholders.