The percentage of women in the C-suite at publicly traded US companies has dropped for the first time in nearly two decades. The growth in the percentage of women in senior corporate leadership roles overall has also barely increased from 2022 to 2023, according to a report from S&P Global Market Intelligence. The study analyzed gender parity data in regulatory documents and press releases for companies on the S&P Global Total Market Index. The researchers noted that the growth in women’s representation in senior corporate positions, which was once a bright spot for gender parity, is showing signs of losing momentum.
In 2023, women held just 11.8% of the roughly 15,000 C-suite roles assessed, down from 12.2% the previous year, marking the first time women have lost seats since 2005 when the data was first measured. 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 and well below the 1.2% average. One possible contributing factor to this decline may be a waning focus on diversity and equity efforts, with publicly traded firms spending less time discussing diversity and inclusion on earnings calls.
Despite some progress in narrowing the gender gap since 2005, when women held less than 8% of senior roles, representation has increased to 22.3% in 2023. However, the share of women in top roles remains low, especially in the highly coveted C-suite positions. If the growth rate continues to remain below average, reaching gender parity in senior roles may be pushed back by up to seven years, according to S&P estimates. Ensuring gender parity is reached sooner will require a concerted effort to monitor progress and make necessary changes to reach established goals.
While there has been progress in increasing women’s representation in senior corporate roles over the years, the recent decline in the percentage of women in the C-suite and the slow growth rate in overall senior leadership positions indicate a potential setback for gender parity efforts. The decline in diversity and inclusion mentions on earnings calls suggests a shifting focus away from equity initiatives, which may be contributing to the stagnation in women’s representation at the highest levels of corporate leadership. To continue making progress towards gender parity, companies will need to prioritize diversity and inclusion efforts and actively work towards increasing women’s representation in senior roles.
The study highlights the importance of monitoring and considering metrics related to women’s representation in senior roles to ensure progress towards established goals. Achieving gender parity in senior corporate positions will require a sustained effort to address the challenges that are currently hindering progress. By acknowledging the recent decline in women’s representation in the C-suite and the slow growth rate in senior leadership roles overall, companies can take proactive steps to support and advance women in leadership positions. Ultimately, reaching gender parity will require a collective commitment to creating a more inclusive and diverse corporate environment where women have equal opportunities to succeed.
