In a concerning development, women’s representation in senior leadership positions within US companies has hit a worrisome turning point, marking the first slowdown in growth in over two decades, according to a recent report by S&P Global Market Intelligence.
The report reveals a decline in the proportion of women holding C-suite roles, dropping from 12.2% to 11.8% in 2023, a shift that translates to approximately 55-60 fewer women occupying positions with ‘chief’ titles compared to the previous year. This downturn comes after years of steady progress, where women’s representation in such roles had been steadily increasing from 6.5% in 2005.
Sarah Cottle, head of data and insights at S&P Global Market Intelligence, expressed disappointment at this sudden loss of momentum, emphasising the significance of the decline in female representation at the highest levels of corporate leadership. The report highlights a potential waning focus on diversity initiatives, with mentions of ‘diversity’ and ‘inclusion’ becoming scarcer in earnings calls, suggesting a broader reassessment of diversity, equity, and inclusion programmes by companies.
The stagnation in female representation in the C-suite is not a recent phenomenon, with researchers pointing to a slowdown in gains dating back several years. Moreover, the pandemic-induced stress and exhaustion prompted many senior-level women to exit leadership roles, seeking more flexible and inclusive work environments elsewhere, as indicated by previous surveys.
The latest data from S&P significantly revises projections for achieving gender parity in leadership roles, with estimates now suggesting that women may not achieve parity with men in the C-suite until 2055-2072, delaying the timeline by five to seven years compared to previous predictions.
Cottle pointed out the importance of women’s representation at the top echelons of companies, emphasising the value of diversity in driving innovation and sustainable growth. She hopes that the current decline in female representation is an anomaly and calls for concerted efforts to reverse this trend and create more inclusive workplaces where women can thrive in leadership positions.
