Reflecting on 2023 - where are we?
- womencfonetwork
- Dec 8, 2023
- 2 min read
Sweet 16
As the year comes to an end, we reflect on the status of women CFOs and the issues they face. Yes, women CFOs are still a minority in the C-suite, but they have made significant progress in the past decade, reaching an all-time high of 16% in 2023.
Pressures abound however, from age discrimination, diversity push-back, the perpetual, frustrating wage gap, and institutional investor requirements, let alone navigating the current downturn across the globe.
One of the issues that women CFOs should apparently be aware of is the potential for managerial opportunism, especially in the form of real earnings management (REM) - manipulation of earnings through operational decisions, such as cutting discretionary expenses, overproducing inventory, or offering price discounts. REM can have negative consequences for the long-term value and reputation of the firm, as well as the credibility and integrity of the CFO yet according to a recent study by El Mahdy and Alali, female CFOs are more likely to engage in REM than male CFOs. Is that true in your experience? Is that a realistic finding?
Regardless of whether that's real, some female CFOs I’ve spoken to lately are working on diversifying their skill sets and experiences anddemonstrate their value beyond their financial expertise. While they were always involved in matters of inorganic growth, strategic investments, operations and so on, they are getting involved in influencing the culture of their firms as well, understanding the people dimension, and one even said brand!
Beyond the CFO herself, all women should consider mentorship and sponsorship for their career development. I recall a few years back hearing from a consultant working with KPMG to connect senior (often male) partners to sponsor up and coming women. (After the speech, I made the point of that all the women being sponsored were client-serving, whereas like EY, most of the women in an organization like KPMG are in “back office” roles, so if they really want to empower women, they need to focus investment on all women in their organization, not just those on a PNL that says they’re “cost”.)
The trick to finding mentors and sponsors are those who can offer different perspectives and insights, and who can challenge and inspire you to grow and excel. At the same time, you need to be able to hear the feedback, and be willing to consider whether it should be acted on.
Growth is easy to focus on as a new year dawns. Women CFOs have made remarkable achievements in the past decade, but they also face ongoing challenges in their roles. By being aware of the issues that may affect their performance and career advancement, and by adopting effective strategies to address them, women CFOs can enhance their value and impact as leaders of their organizations, and pave the way for more women to rock the C-suite.
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