Report: Appointing a Female CEO Comes at a Cost

FRESNO, Calif. (KMJ) — Companies who appoint a female chief executive officer risk seeing their share prices drop.

Researchers the Northwestern University Kellogg School of Management say there appears to be a “market penalty,” for having a woman lead the company.

In examining thousands of appointments, they found that females received three times more coverage in the media.

Almost immediately, the company’s stock traded lower by about 2.5 percent.

The effect is often temporary; but, it could have a long-term impact on the CEO, as company boards typically scrutinize CEOs, whose appointments result in a negative market response.