Women leaders have a big tenure problem
We all know that women in the corporate world often struggle to make it to the same dizzying heights that men do.?
Women as a whole still earn significantly less than men, and the pay gap actually increases as they climb the corporate ladder—women at the executive level make around 72 cents on the dollar compared to men. They also helm just a small minority of Fortune 500 companies—around 10.4%.?
But there’s another front to consider when it comes to women’s struggle for corporate equality. The average CEO term for a woman at a Fortune 500 company is around 4.5 years, while the average male CEO clocks in at around 7.2 years, Fortune ’s Lila MacLellan recently reported. That’s in line with other analyses that show women CEO tenures are around three years shorter than men.?
There are many different factors that could explain this shortfall. Women are often put in charge of companies that are already on the decline. They’re also less likely to hold internal positions within a company that are considered top picks for the top job, and CEOs who are promoted from within hold longer leadership terms. Activist investors are also more likely to target women-lead companies…the list goes on!?
“In my experience, there are so many devious ways of bringing senior females down,” says Amanda Rajkumar , a longtime HR professional.?
So what’s it going to take for women to catch up to men in the corner office? Possibly a total societal shift that does away with the double standard of expectations women have to endure. But in the meantime, company boards can work on developing a deep roster of talented women executives ready to take over in the future, and also consider different leadership models with the particular needs of women executives in mind.?
You can read more about the challenges facing the women who are already in power here .
Leadership Tip of the Week ??
As the labor market has heated up over the past few years, companies have made some major investments in their HR departments, and with a focus on talent in particular—the share of recruiters grew by more than 20% between 2018 and 2023, according to a new analysis from ADP . But it might be wise for executives to take a breath and take stock of where they’ve landed before they start out on another talent blitz.?
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Leadership Next
After leaving PayPal , Roelof Botha went on to help Sequoia Capital nurture some of the world’s most influential tech companies, including YouTube and NVIDIA.
Sequoia has been an investor in the AI space since the 1990s. The firm was an early investor in OpenAI, the company that has accelerated the current AI wave with its groundbreaking generative AI technology, which Botha sees as a foundational shake-up for business.
In this episode of Leadership Next, Botha shares his thoughts on what sectors he believes this tech will be most impactful in; why it rivals the previous waves of internet, cloud, and mobile; and whether we will see an AI bubble. He also provides insight into the current state of the venture capital industry.
Listen to the episode and subscribe to Leadership Next wherever you listen to podcasts, or read the full transcript here.
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8 个月There is a common belief that women's dedication to family holds back their careers, but the issue goes beyond time management. Both male colleagues and unmarried women have expressed concerns about feeling disadvantaged without children. Attending my daughter's events was important to me, but it sometimes meant making personal sacrifices in my professional life. This included facing questions about my commitment to my job from colleagues and leaders, as well as giving up personal time off that I could have used for much-needed rest. I want to thank Fortune for sharing this insightful article. I am encouraged by the focus on how women leaders can effectively manage both personal and professional lives. It is important to rethink the culture of overwork and ensure that women are not penalized for using work-life balance programs. Women play a key role in creating a supportive business environment and empowering aspiring female entrepreneurs. Collaboration and solidarity among women are crucial for success. Thank you for highlighting these important points.
Regional Vice President- Revenue & Commerce | #BestLifeLadies
8 个月This is so very real, as a newer mom who is the breadwinner I am acutely aware of how many setbacks I have already encountered, but now despite having an excellent partner who allows me to strike a balance. The mountain looming in front of me to climb in order to get a place where my family is as comfortable as any of my male peers is daunting. I am not only playing catch up for years of being underpaid and not promoted on par (despite higher performance records). I am not on a track to get the job that makes the difference needed to stay ahead. It's often a struggle to stay motivated, but I know if I don't, all the women behind me suffer more.
Writer/ Poet ( self employed)
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