The C-suite, often known as the C-level, refers to the group of top executives in command of a business. The corporate ladder does have both men and women but what’s disturbing is the issue that not many women are at top compared to their male counterparts. According to a 2019 analysis by Korn Ferry, women make up about 45 percent of employees in USA’s major corporations, but only 25 percent of the five essential C-suite positions are held by women.
Though in the last few years this percentage is creeping upwards, the number of female CEOs is beginning to improve after decades of being largely underrepresented in leadership posts. An in-depth report by McKinsey released last spring, studied workplace diversity and inclusion, noting that amid the COVID-19 crisis, it is more important than ever. Furthermore, according to a 2019 study by S&P Global Market Intelligence covering around 4.5 million professionals internationally, with robust coverage for the Russell 3000 starting in 2002 concluded that corporations with female CEOs had a 20% rise in stock price momentum in their first 24 months in office compared to their male counterparts. Thus, companies are clearing catching on and appointing more women to positions of leadership.
From the highest-ranking business ever run by a female CEO to first time Black women running Fortune 500 businesses, 2021 has seen the number of women who head Fortune 500 companies reach an all-time high: 41. Although this ever-changing number isn't as large as it is supposed to be, it does provide a good glimpse and prove to be a great support to the need of the hour.
The fashion business too saw an increase in female representation among incoming CEOs by 95.1 percent in 2020 compared to their predecessors, according to a report by data analysis firm Nextail. One notable example is Helena Helmersson- first woman to lead one of the top four global fast fashion groups. These new CEO’s not only contributed a higher level of knowledge in retail operations, product development, and analysis but cited digital transformation, growth and sustainability- critical drivers for leadership transition. A study by Harvard Business Review for 163 multinational companies over 13 years concluded that when the top management teams added female executives, they gradually shifted from a knowledge-buying strategy focused on mergers and acquisitions — which could be described as a more traditionally masculine, proactive approach — to a knowledge-building strategy focused on internal research and development.It was found that after women were appointed to senior positions and firms began to exhibit higher levels of both openness to change and aversion to risk, firms reported an average $72 million increase in R&D investments.
According to a Deloitte report , businesses with a diverse culture are six times more likely to be innovative. They are twice as likely to meet or exceed financial goals if they remain ahead of changes. This entails offering female mentors and role models, exhibiting trust (rather than talking about it), cultivating a collaborative environment, utilizing technology to break down boundaries, and openly sourcing creativity. According to a Harvard Business School analysis on the male-dominated venture capital market, "the more similar the investing partners, the weaker the performance of their investments." In fact, firms who boosted their number of female partner hires by 10% witnessed a 1.5 percent rise in overall fund returns and 9.7% more profitable exits on average each year. Thus, It is beneficial to business to have a diverse leadership team.
While the gender gap is less pronounced in non-CEO positions like chief operating officers and chief financial officers, it is still significant. Women's greater tendency to trade professions for family, conscious and unconscious bias, and a lack of mentorship opportunities are few of the frequently stated causes for a lack of gender diversity in the workplace. Women in executive or President/CEO positions face increased pressure to perform due to their status as a minority. Due to these demands, female CEOs need to devote more time to considering not only their company's decisions, but also how those decisions would impact women's overall role in the workplace.
The largest barrier to reducing the economic gender gap, according to the World Economic Forum, is women's under-representation in developing roles. Women make up only 12 percent of cloud computing professionals, whereas 15 percent and 26 percent of engineers and data and AI professionals, respectively. We risk missing out on the Fourth Industrial Revolution's full potential unless the sector can balance the ledger by making roles appealing to women.
Companies have been encouraged to increase gender diversity as a result of the epidemic and the resulting flexibility and remote working. Vedanta, Axis Bank, TCS, Johnson & Johnson, Schneider Electric, Phonepe, and GE are among the companies that have made a determined effort to increase the number of women in leadership positions and the very fact that top corporate boards are extending their views of what makes a great CEO and prioritizing diversity is a wonderful news in itself.
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