Christine Lagarde and Glass Cliff Investing

I have a theory that women are generally given space and appointed to jobs when the situation is tough. In times of crisis, women eventually are called upon to sort out the mess.
— Christine Lagarde

They call it the glass cliff. It's the reality that women are more likely to be appointed to top roles when the situation is precarious, with a high risk of failure.

Lagarde herself is all too familiar with the glass cliff. She is the first woman to serve as the finance minister of France, as the managing director of the International Monetary Funds, and as president of the European Central Bank, where she still serves. In all of these roles, Lagarde had to push through difficult reforms and force the patient to swallow unpleasant medicine.

Lagarde isn't alone. Mary Barra inherited General Motors in 2014, just before it had to recall millions of cars. Do you think that was a coincidence?

Barra and Lagarde both excelled in the top jobs, and the data says that's no surprise. S&P Global found that female CEOs' stock prices outperform the market and jump by 20% in the first two years.

The next time one of the poor performers on my watch list appoints a female CEO, that may be reason enough to take a position. Unfortunately, there are no good English-language books by Lagarde. Road to Power, however, is a good book about Mary Barra's path to the corner office.

Catch the posts you missed at www.mydailyoracle.com, and look out for tomorrow’s note in your inbox.

Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions. Links on this page may be affiliate links, meaning your purchases help support this newsletter. Copyright © 2025 mydailyoracle.com. All rights reserved.