The news that HSBC is potentially appointing the first female CFO in the bank’s 159-year history speaks volumes about this traditionally male-dominated profession.
In recent years, progress has been made to address this: the number of women appointed as CFOs globally has reached a five-year high, according to data by executive search firm Russell Reynolds.
However, women still remain largely under-represented in the role. Of the 163 CFOs appointed in the first six months of 2024, just 44 were women. And there is certainly still a lack of gender diversity on display in the FTSE 100, where only 25% of finance directors are female.
Several factors are contributing to the gender imbalance, including cultural bias about who makes an effective leader and a lack of access to career development opportunities. Not to mention the structural issues of unequal pay and the cost of childcare.
While data indicates that the number of females stepping into high-level finance positions is steadily growing, the story behind these figures is still one of frustration. Here, five female finance leaders share the challenges currently facing women in the profession and some strategies to overcome them.
Working as a woman in the finance field, being overlooked is not uncommon and getting to the position of CFO has not been easy.
I’ve been told on multiple occasions when applying for jobs that the firm is looking for diverse candidates. As an ethnic-minority woman, I’ve been immediately put into the queue for these roles. On one level this sounds positive. However I don’t want to be considered for my visible traits instead of my ability to perform. It doesn’t feel authentic.
Paradoxically, I’ve also been rejected for not looking like a stereotypical CFO. I’ve had firms tell me very bluntly during interviews that I look too young for the job. That, despite ticking all the boxes when it comes to skills and experience, I was not a suitable fit because I don’t look the part of a traditional finance chief. I was once told to reapply for the CFO job when I got into my 50s – I couldn’t believe it!
Unfortunately, these attitudes persist. However, there are plenty of companies that champion diversity and I would advise anyone experiencing something similar to spend time looking for those places and review how inclusive they are.
Awareness and acknowledgement around unconscious bias is critical in the workplace. As a leader, I have to constantly make sure I’m not making unfair, inaccurate judgements or overlooking talent.
Naturally, there is a narrowing of women in the workforce when you get into more senior levels of finance. Diversifying those positions requires firms and hiring managers to be more open to taking leaps of faith on people that do not fit the stereotypes. Support for more diverse thinking needs to be supported and encouraged by high-ranking leaders. It starts from the top.
As a woman, I’ve found that it can be tough to gain recognition and earn trust in elevated positions. In the past I’ve definitely had to work harder to prove that I was capable of promotion than my male colleagues.
The finance field can be high-pressured and fast-moving. One of the most effective ways to develop the skills needed as a finance leader is to be ‘thrown in the deep end’. However, many organisations tend to be more reluctant to give those challenges to female candidates so they miss out on honing the important skills needed to progress.
Another challenge is unconscious bias. Margaret Thatcher famously retrained her voice to a deeper pitch to gain credibility. I haven’t done anything that extreme, but I do consciously embrace my deeper ‘chest’ voice when I’m in meetings and negotiations and it does have more impact.
Being a hard negotiator and unwilling to flex under pressure is not received well from female business leaders, yet is somewhat expected from men. I have the chance to work with some amazing female sales leaders who showed me the way to maintain femininity and male respect while still landing the deal.
More needs to be done to push women up the corporate ladder. One initiative I’ve been proud to be a part of is launching Motorway’s Women’s Chapter. We recently hosted a day off-site where we held a fireside chat, a panel discussion and team networking. It was electric seeing the energy build in the room. It was only then that we started to really see each other – to connect on a deeper level and work together to create the change we all seek.
The finance sector has come a long way from where it was. Until 1919, women were barred from joining accounting professional bodies. It took until 1974 for women to be able to get a credit card in their own name. Since then, there has been a growing number of women in the sector; in fact, 57% of our AAT members are women.
However, the reality is that gender equality hasn’t been achieved yet. Women don’t hold as many senior finance positions as men and there is still a gender pay gap, which we saw when we looked at the average fee takings that our members collect from clients.
The real issue is retaining women at senior level. We know that they are still far more likely to take career breaks than men and when they return, in lower numbers, it appears they are not being offered or accessing development opportunities. Employers should focus on how they can encourage them back and get them on an equal footing with their peers.
I think there needs to be more boardroom discussions about how inclusivity makes absolute business sense and how it directly benefits the bottom line. It’s interesting – despite numerous reports showing the business benefits that diversity and inclusion brings, it’s often de-prioritised during economic downturns or company cutbacks.
Having a diverse range of senior talent also helps to attract the next generation of talent. This is especially important for a sector like accounting that still struggles with a traditionally ‘stuffy’ reputation.
As someone who has seen the value of diversity in decision-making first-hand, I believe the lack of women in leadership within finance not only limits opportunities for talented individuals but also hinders the growth of the industry itself.
At Milk & Honey we have an all-female board at group level. We believe the importance of having more women in senior financial positions goes beyond fairness. Women bring diverse perspectives and problem-solving approaches that are critical in navigating today’s complex financial environment. Studies have shown that companies with diverse leadership teams, including gender diversity, tend to outperform their peers, with more innovative strategies, improved governance and stronger risk management. This isn’t surprising – women often approach risk differently, considering long-term impacts and alternative viewpoints. In finance, this nuanced approach can prevent short-sighted decisions that prioritise immediate gain over sustainable success.
Moreover, gender balance fosters a culture of inclusivity, where different voices are not only heard but valued. This inclusivity creates a positive feedback loop: it attracts more diverse talent, cultivates creativity and enhances collaboration. These are crucial ingredients in an industry like finance, which thrives on innovation and the ability to adapt to changing market conditions.
The under-representation of women also reinforces negative stereotypes about who ‘belongs’ in finance. By breaking down these barriers and promoting women into senior roles, we challenge outdated norms and inspire the next generation of leaders. It’s not just about ticking diversity boxes; it’s about enriching the financial world with the full spectrum of talent it needs to thrive in the future.
In my experience, succession strategies will fail without an intentional focus on recognising and addressing unconscious bias in the workplace. I’ve seen biases manifest when women are overlooked for key assignments under the assumption they are too preoccupied with family responsibilities. Breaking down these stereotypes is critical to fostering a more inclusive environment where women can thrive in leadership roles such as the CFO.
I think it’s also important for women to take charge of their own career trajectory by strategically positioning themselves for CFO roles. This means stepping forward with confidence, seeking out challenging assignments, and pursuing opportunities, even when they may not feel fully prepared.
