The percentage of women in senior corporate leadership roles at publicly traded US companies has decreased for the first time in nearly two decades. According to a report from S&P Global Market Intelligence, the growth in the percentage of women in these positions barely budged from 2022 to 2023. Women held just 11.8% of C-suite roles in 2023, down from 12.2% the previous year, marking the first time women have lost seats since 2005. The year-over-year growth rate in women’s representation in senior corporate roles overall was just 0.5%, the lowest rate recorded in over a decade.
One possible contributing factor to this decline in women’s representation is the waning focus on diversity and equity efforts. The study found that publicly traded firms are spending less time discussing diversity and inclusion on earnings calls. The peak of mentions related to diversity, equity, and inclusion came in 2020 during the Covid pandemic, but these mentions fell to the lowest levels since 2012 in 2023. This decrease in attention to diversity could be impacting the progress towards gender parity in senior leadership roles.
While there has been progress in narrowing the gender gap since 2005, with women holding 22.3% of senior roles in 2023 compared to less than 8% in 2005, there is still a significant disparity. The representation of women in the highly coveted C-suite positions has only increased from 6.5% to 11.8% over the same period. If the growth rate remains below average, reaching gender parity in senior roles could be pushed back by up to seven years to as late as 2042, according to S&P estimates. This highlights the importance of monitoring and considering these metrics to ensure progress towards established goals.
To achieve gender parity in senior corporate leadership roles sooner rather than later, a concerted effort will be needed. The researchers suggest that the decline in the growth rate of women’s representation across all senior roles and the loss of seats in the C-suite should be closely monitored and considered. With women having joined the workforce in large numbers for at least half a century, the slow progress towards gender parity in top roles is concerning. It will be essential to refocus efforts on diversity and inclusion initiatives to accelerate progress and ensure that women continue to advance in corporate leadership positions.
