Female leadership linked to smaller gender pay gaps
Despite decades of progress, women remain significantly underrepresented in leadership positions across politics and business, and global gender inequalities persist. An article by Pilita Clark in the Financial Times highlights how slow progress has been in closing gaps in representation and pay, even as awareness and policy initiatives have expanded.
Globally, women still earn around 77 cents for every dollar earned by men for work of equal value. In business leadership, representation also remains limited: women led only 11% of companies in the S&P 500 last year, while just 9% of FTSE 100 companies had a female chief executive in 2025.
However, new research suggests that female leadership may have a measurable impact on workplace equality. An analysis of more than 40 organisations in the international health sector found that companies led by women had gender pay gaps that were on average 4.3 percentage points smaller than those led by men.
While the findings show correlation rather than causation, they echo other studies suggesting that female leadership can be associated with more balanced evaluation of employees and stronger gender equality policies. Some researchers also argue that women may feel more confident negotiating pay or career opportunities when senior leadership is more representative.
Despite these potential benefits, female leadership remains relatively rare. In politics, only a small share of countries are currently led by women, and in many sectors women still face structural barriers ranging from unequal childcare responsibilities to limited enforcement of gender equality laws.
The article concludes that while female leadership alone cannot resolve gender inequalities, increasing representation at the top may play an important role in narrowing persistent gaps in pay and opportunity. As International Women’s Day approaches, the challenge remains how to translate awareness into faster and more lasting progress.
Read the full article here.