Women CEOs Have Shorter Tenures Than Men: What Fuels This Gap?

Gender tenure disparity has emerged in corporate governance, with female CEOs experiencing shorter tenures compared to their male counterparts. A recent, extensive study conducted by the executive search firm Russell Reynolds, based in the UK, not only highlights this stark difference in CEO tenure but also paves the way for a closer examination of the underlying factors that fuel this gap and an exploration of the "glass cliff" theory, where female leaders are often poised on the edge of leadership with a higher risk of failure.

The research has meticulously scrutinised publicly listed companies across 12 international stock exchanges, encompassing prestigious indices such as the FTSE 100 and FTSE 250. What it uncovers is indeed remarkable.

Understanding The Gender Tenure Gap

Since 2018, female CEOs, on average, have held their positions for 5.2 years, whereas male CEOs have enjoyed a notably longer average tenure of 8.1 years. A significant contributing factor to this tenure gap is the fact that several male CEOs have held their posts for several decades, with one particularly notable individual maintaining their position for an astonishing 39 years. However, this gender tenure gap isn't solely about the numbers; it's about the why and how.

The Glass Cliff Phenomenon

To fully grasp the gender tenure gap, we must acquaint ourselves with the theory of the "glass cliff." This concept suggests that women are more likely to be appointed as leaders during times of crisis, making their leadership positions appear more fragile compared to their male counterparts. The glass cliff theory, though fascinating, begs the question: Why are women more frequently entrusted with leadership roles when an organization is teetering on the edge of difficulty?

1. Diversity Imperative

One of the reasons for the glass cliff phenomenon can be traced to the increasing pressure for diversity in leadership roles. Organizations, under the watchful eyes of stakeholders, have been pushed to demonstrate their commitment to gender equality. Consequently, women are often placed in leadership positions as a response to this demand. However, this sometimes translates into women stepping into roles during trying times, where the risk of failure is higher.

2. Unconscious biases

Unconscious biases play a significant role in the glass cliff phenomenon. These biases can lead decision-makers to believe that women are better equipped to handle challenging situations, overlooking their proven capabilities to excel in stable periods. The result is that female CEOs are more likely to be appointed when companies are navigating tumultuous waters.

3. Perceived Leadership Style

Stereotypes around leadership styles also contribute to the gender tenure gap. Women are often seen as empathetic, collaborative, and good at managing crises. While these are valuable qualities, they sometimes lead to the misconception that women are better suited for leadership during turbulent times, reinforcing the glass cliff effect.

4. Organisational Expectations

The expectations placed on female leaders can be particularly demanding. They are often held to higher standards in times of crisis, and their performance is closely scrutinized. This excessive pressure can contribute to shortened tenures as the challenges become more challenging to surmount.

The Indian Perspective 

In a world where gender equality remains an elusive dream, India stands at a crucial juncture. India's ranking in the 2022 World Economic Forum Gender Gap Report at 135 out of 146 countries is a stark reminder of the challenges it faces, trailing behind neighbouring nations like Sri Lanka, Bangladesh, and Nepal. This serves as a compelling incentive for more women to enter the workforce or embrace entrepreneurship. 

However, for women who manage to shatter the glass ceiling, their journey to leadership roles is often fraught with obstacles. Unequal pay, stress, burnout, and limited opportunities cast shadows on their path. Deloitte Global's 'Women in the Boardroom' report 2022 does indicate progress, with women now holding 17.1% of board seats in India, a commendable 9.4% increase since 2014. However, the stark reality is that only 3.6% of board chairs in India are women.

Female leaders offer more than just diversity; they bring a multitude of advantages. Forbes research shows that organizations with at least 30% women in leadership roles are 12 times more likely to rank in the top 20% for financial performance. Female leaders consistently outperform their male counterparts, showcasing higher levels of creativity, authenticity, and an intricate understanding of complex systems.

Their prowess extends to building connections, mentoring, and demonstrating unwavering concern for their communities. IBM's 'Women in Leadership' study underscores the pressing need for more female leaders, emphasizing the requirement for a robust pipeline that fully harnesses the unique advantages of feminine leadership, contributing to both equity and bottom-line results.

The path to gender equality may be strewn with challenges, but it's a path that can be navigated successfully. Initiatives such as providing financial support for women entrepreneurs, enhancing access to education, promoting gender equality, ensuring safety and security, and creating more job opportunities can dismantle barriers and foster women's entrepreneurship and employment in India. The International Labor Organization (ILO) proposes several strategies to eliminate the gender gap:

1. Ensuring equal pay for equal work
2. Challenging occupational segregation.
3. Eliminating gender discrimination and harassment.
4. Promoting work-family balance.
5. Creating quality care jobs.
6. Implementing gender-responsive policies.

The CEO gender tenure gap is not merely a statistical anomaly; it's a multifaceted issue. Recognizing and addressing the underlying causes and biases is a crucial first step in addressing this disparity. Progress in this area involves challenging stereotypes, championing diversity in leadership, and acknowledging that women possess the capabilities to excel in leadership roles, regardless of the organizational climate.

The road to equity and inclusivity entails a steadfast commitment to providing women with equal opportunities to lead, thrive, and make a lasting impact on the corporate landscape.

Views expressed are the author's own.

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