Hollywood is probably one of the more well-known industries that's widely seen as a tough place for women to ascend to the top. When Kathryn Bigelow won Best Director for The Hurt Locker in 2010, she became the first-ever female director to do so. (Chloé Zhao, who won in 2021 for Nomadland, was just the second.) It's notable not only that a female director won but that the pool of female directors was also so small. In fact, from 2007 to 2019, male directors outpaced female directors by a ratio of 20:1. That's a stunning stat.
Yet Hollywood is hardly an outlier when it comes to big-money industries in which women are underrepresented at the top. There's also been a dearth of female workers among the upper echelons of financial management and investment services. Consider this: According to the Deloitte Center for Financial Services, only six of the 107 largest financial institutions in the United States were run by female CEOs in 2019.
Where Are All the Women in Finance?
Studies paint a mixed picture for women in finance. Though the percentage of men and women entering the field is roughly equal, men typically rise to the top faster than women do. For example, among senior roles in venture capital (VC) firms, only 4.9% of the partners are female. The picture doesn't get much rosier when it comes to private equity (PE), in which fewer than 10% of senior roles are held by women. On the bright side, there is a greater focus on improving diversity, and the overall percentage of women joining VC, PE, and hedge fund firms is rising.
The nonprofit Girls Who Invest was founded in 2015 and continues to invest in young women's future careers in the financial services industry.
When it comes to gender equality, there are a few reasons why women may not be advancing to the top ranks as quickly as men are. One is a lack of role models. Without more women paving the way, those entering the field may find the path more challenging to navigate or may not even know there is one. Some women have voiced concern about work-life balance, while others simply cite the lack of manager support.
- Women and men begin in parity at the start of their careers in finance, but the C-suite is still largely dominated by men.
- Women need more role models and mentors among high-ranking roles in finance
- Nonprofits such as Girls Who Invest offer programs to bring young females into the world of finance through internships and mentoring programs.
The Business School Impact
When it comes to business school, those seeking finance and business degrees still skew male. For example, 44% of students who enrolled in Harvard Business School in 2020 were women, while at Wharton, only 41% of those enrolled in the MBA program in 2020 were female. (No statistics were reported for gender-nonconforming applicants at either school.)
Those degrees can help open doors and create opportunities, so if the percentage of female enrollment rises, the playing field may start to even out. But it's not just degrees that will help clear the way.
Investing in Young Women
Women need mentors and role models to show that whatever roadblocks have been preventing them from achieving or even considering C-suite level positions can be overcome. And that means starting young.
Fortunately, there are a number of nonprofits and other female-focused organizations rising to that challenge. Girls Who Invest, a nonprofit founded by financial expert Seema Hingorani in 2015, has an ambitious mission to have women managing 30% of the world’s capital by 2030.
Girls Who Invest's programs and offerings are designed to motivate, interest, and inspire young women to join the investment management and greater financial services field.
The mission is not new for Hingorani. Not only does she bring 25 years of investment experience to the nonprofit, but she's also been heavily involved in diversity initiatives. She's a member of Morgan Stanley's Diversity and Inclusion Senior Leaders Advisory Council and was previously the founder and chief investment officer of SevenStep Capital, an investment platform solely focused on women.
And she's not alone. Ellevest, founded by Wall Street veteran Sallie Krawcheck in 2014, aims to make financial products more accessible to women through investing tools, access to financial planners, education, and coaching. The company's motto says it all: "Ellevest was built by women, for women."
Business schools are also getting in on the action. Though it's not just focused on financial careers, Rutgers Business School's Center for Women in Business aims to "remove barriers, build community, and empower women with the confidence and skills necessary to succeed as business leaders."
The 18-member board is largely female and dedicated to growing opportunities for women through networking events, leadership workshops, female-focused mentoring opportunities, and more.
The Bottom Line
Things are starting to change. Men may still be dominating the C-suite, but as more women learn about the opportunities available in business and finance, find mentors to help guide them, and break down other barriers, expect to see that gender gap start to close.