Gender demographics are changing in corporate America, according to a new financial report, and researchers are concerned.
A Turning Point?
The number of women in C-suite positions in the U.S. has dropped for the first time in years, signifying an “alarming turning point” in the advancement of women’s representation in corporate America.
S&P Report
This was recently revealed in a report by the financial information services provider S&P Market Intelligence, which used data from the S&P Global Total Market Index to build its analysis.
A Study of Women in Corporate America
It looked at growth in the number of women in senior leadership roles in publicly traded U.S. companies between 2022 and 2023.
A 0.4% Drop
As of 2023, women in these companies made up just 11.8% of 15,000 C-suite positions that were surveyed. This number sat at 12.2% in 2022, signaling a 0.4% drop in female representation in C-suite roles.
60 C-Suite Changes
Extrapolating the data would suggest that between 55-60 C-suite roles switched from men to women in corporate America over the year.
First Drop Since 2005
However, what is most notable about this shift in demographics is that it is the first time since 2005 that the number of women in C-suite positions has decreased rather than increased.
A Turn in Progress
Women’s representation in senior corporate roles has been on the rise for the last two decades, jumping from 6.5% in 2005 to 12.2% in 2022.
Some fear that the new report could signal a regressive shift in this representation.
“An Alarming Turning Point”
Researchers at S&P Global Market Intelligence concluded their report, pointing to the potential for these statistics as a sign of “an alarming turning point.”
“Signs of Losing Momentum”
“The growth in women’s representation among senior corporate positions, once a bright spot for gender parity, potentially faces an alarming turning point,” they wrote. “Exponential growth over a decade is showing signs of losing momentum.”
Disappointing Results
The head of data and insights at S&P GMI, Sarah Cottle, called the results “particularly disappointing,” and “not just a loss in momentum but a loss in seats.”
Women’s Positions for Women’s Interests
“Women’s interests are better served in the community by companies that employ women at the top,” she continued. “I hope this is an anomaly.”
Diversity Trends Follow
The authors of the report also pointed to a “waning focus on diversity initiatives” in corporate culture, which could explain the drop in senior female employees being hired.
Diversity, Equity, and Inclusion
Mentions of DEI initiatives – Diversity, Equity, and Inclusion – in S&P 500 earnings calls reached their height in 2020.
On the Decline Since 2020
But those same mentions, specifically the words “diversity” and “inclusion,” have continued to decline each quarter since the Covid-19 pandemic.
These mentions had dropped to their lowest in the final quarter of the 2023 fiscal year since 2012.
An Inevitable Decline?
Researchers also noted that while these numbers had been increasing since 2005, the rate of growth had slowed in recent years, and based on slowing growth, this decline may have been inevitable.
Pandemic Changes
They also noted the role of the pandemic, which led many women to leave C-suite and other senior positions after reassessing their careers during the COVID-19 lockdowns. Many referenced excess stress and exhaustion.
Leaving for Better Opportunities
Others also quit for better opportunities in different positions, according to a 2022 survey by the women’s advocacy group LeanIn.Org.
These positions may not necessarily be reflected in the findings of the S&P report.
Gender Parity Predictions Affected
If the growth in women’s representation continues to decline, it will push back predictions of gender parity for men and women in the workplace.
As Far Back as 2072
While in 2023, S&P predicted that the gender pay gap could be closed by 2035, they have now estimated that the current trend could push that goal as far as 2072.
Women Continue to Bear the Brunt
S&P cited the World Economic Forum’s Global Gender Gap Report from 2023, which reported that “gender parity globally has recovered to pre-COVID-19 levels, but the pace of change has stagnated” as women in the workplace “continue to bear the brunt of the current cost of living crisis and labor market disruptions.”
The post Alarming Turn: Female Representation in C-suite Dips for First Time in Years first appeared on Wealthy Living.
Featured Image Credit: Shutterstock / fizkes.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
