The Great Plateau: Why Women’s Rise to CEO Jobs and Board Seats Is Stalling

The steady climb of women into CEO jobs and board seats has reached a plateau, leaving many wondering if the progress made in recent years will be undone. Economic uncertainty, changing management tracks, and shifting corporate priorities have created a perfect storm that is slowing momentum behind female leadership.

According to Jane Edison Stevenson, global vice chair of board and CEO services at Korn Ferry, companies must intentionally prioritize diversity if they want to avoid losing ground. “If there isn’t a specific intentionality about making sure that spots are filled by women,” she notes, “then we could lose progress made so far.” This lack of attention is particularly concerning given the recent trend of companies dismantling corporate management programs that helped develop female leaders.

The data on board representation is equally troubling. In the third quarter, 22.5% of new seats in the Russell 3000 went to women – a rate not seen in over a decade. This decline suggests that companies may be reverting to old patterns rather than actively seeking out and promoting diverse talent.

Economic uncertainty is also taking its toll on corporate decision-making. Companies are increasingly hesitant to make bold moves or invest in new talent, says Heather Spilsbury, CEO of 50/50 Women on Boards. “When companies aren’t looking for new talent outside of their own threshold or board,” she notes, “it becomes very limited in terms of who’s being appointed to a board.”

The slowdown is not just limited to board appointments; CEO turnover is also slowing down, with women getting a smaller share of available jobs. Through October, 25.5% of new CEOs at U.S. firms were women – down from 26.4% for the same period last year.

One possible explanation for this shift is the dismantling of corporate management programs that helped develop female leaders. These programs prepared women for key roles, such as “profit and loss” positions, which are essential for any C-suite hopeful. However, with many companies offloading their corporate campuses where these training programs took place, it’s unclear whether a new generation of female executives will be able to follow in the footsteps of those who came before.

The implications of this slowdown are far-reaching. Not only do they suggest that progress towards greater diversity and inclusion may be reversible, but they also raise questions about the impact on business performance and competitiveness. As Stevenson notes, “Our patience isn’t what it once was around development,” implying that companies may be sacrificing long-term gains for short-term stability.

Ultimately, the question is whether this slowdown will be a temporary blip or a more lasting trend. Will companies rediscover their commitment to developing female leaders and promoting diversity on boards? Or will they continue down the path of complacency, assuming that there’s already a healthy pipeline of women ready for senior positions?

The answer will likely determine not just the fate of female leadership but also the future competitiveness of businesses around the world. Companies must prioritize diversity and inclusion if they want to remain competitive in an increasingly globalized economy.

A shift in priorities within companies is contributing to the slowdown in female leadership gains. As economic uncertainty grows, corporate leaders are increasingly focused on short-term stability rather than long-term growth. This can lead to a neglect of initiatives that promote diversity and inclusion, including those aimed at developing female leaders.

The offloading of corporate management programs that helped develop female leaders is a worrying trend. These programs were instrumental in preparing women for key roles, but with many companies dismantling them due to cost or changing priorities, it’s unclear whether a new generation of female executives will be able to follow in their footsteps.

As the business case for diversity becomes more compelling, corporate leaders must take action to promote greater inclusion and ensure that women continue to rise through the ranks. The future competitiveness of businesses around the world depends on it – anything less would be a missed opportunity – and potentially a recipe for disaster.