Since the 1960’s feminist movement, women have entered the labor force in quite large numbers. As it stands today, women make up almost 47% of the labor force according to the U.S. Department of Labor. With all of the strides women have made in the recent years, many tend to do a double take when they view the recent statistics mentioning the decline of female CEOs within the last year or so.
This recent decline may point towards a grim reality when unveiling the number of women who hold the title as Chief Executive Officer (CEO), especially when compared to the previous years. Although it may seem discouraging for some to see the statistics below, I assure you there is a light at the end of the tunnel. With an increase in female executive board members, acceptance of new beliefs surrounding parental figures in the home, and adoption of technology intertwined with remote work, it is probable we will be able to move this statistic in the opposite way. However, before we get too excited, let’s take a deeper look into the numbers.
The Small Pool
According to Fortune, of the Fortune 500 companies, the number of female CEOs has dropped by 25% from 32 to 24. As it stands, only 4.8% of the Fortune 500 companies sight women holding the title as CEO. Alright, so this list may be a bit narrow since it only includes the Fortune 500 companies, so let’s expand that pool a bit. When looking at a less narrow and broader number of companies the data can still be rather worrisome.
According to Pew Research Center analysis of numerous federal security filings by all companies in the S&P Composite 1500 stock index, only 5.1% of women held the position of Chief Executive Officer.
Now, let’s take it one step further and look deeper at the S&P 1500. When looking at roles near the surface of a CEO we can look at positions that may allow those to move up the corporate ladder up to the CEO desk. These positions may include Chief Financial Officer and Chief Operating Officer. When looking at the S&P 1500 there is a total of 5,700 executives who hold these positions, and only a measly 651 are held by women. With only 11.5% of the entire group, it may suggest that more women are needed in executive-level positions in order to increase the number of female CEOs.
The Qualified
Okay, so you can’t just walk up to a top-notch Fortune 500 company and become CEO. There remain qualifications, education, and years needed of relevant, and quality experience in order to even be considered for such a commanding role. This leads many to wonder how many women are considered fit enough to be CEO?
While each company is unique when it comes to its criteria for hiring a CEO, there is a broad rubric which can be established. This includes having a four-year degree as a minimum (master’s preferably) in business, science, or law, have a position in an operational setting and moving through the ranks for potentially many years. There are many other personal characteristics to include such as being a natural-born leader, a superb communicator, and the ability to handle stress. So, where exactly do women fit into these roles?
Well, as stated previously woman make up almost 47% of the U.S. labor force, according to the U.S. Department of Labor Blog. U.S. Department of Labor Blog. Additionally, the Department of Labor also states that more than 40% of women in the labor force had college degrees in 2016. So, figuratively speaking 40% of women are in the running to potentially become the next CEO, so why aren’t they?
The On-Ramp Revolution
When viewing the number and variety of positions women hold on their journey to the C-suite, it’s important to mention there are many reasons as to why some may turn down the role. The promotions and potential may be there, even on the table to some, but there is a conscious choice by many to hop off the corporate ladder or at least stay a few rings down.
The Harvard Review states that as much as 43% of highly-qualified women with children are leaving the working world or taking a break from their career. They are more often choosing family over that next step in their career. Compared to 24% of men, these percentages remain far greater than that of men who have similar qualifications.
The Rise In Stay At Home Dads
While there remains no clear-cut data showcasing the number of stay-at-home dads, as a result of the Census Bureau lacking that category, the most recent study derives from a 2013 Pew Research Center report. According to a Pew Research Center report in 2013, comprised of data collected by the U.S. census bureau, the number of stay at home dads has significantly increased since 1989. This number went from 1.1 million to 2 million, making up 16% of the stay-at-home population. While moms primarily stay at home, dads are increasing from 10% in 1989 all the way up to 16% in 2012. Within the report, the data assumes these dads were caregiving for their kids, at the time they weren’t working.
According to the National At-Home Dad Network, the number remains widely viable as there is not a clear enough definition and/or assumption for stay at home dads. Furthermore, the National At-Home Dad Network defines a stay-at-home-dad as the primary caregiver and doesn’t focus on the employment status. According to the 2011 U.S. Census, there were approximately 7 million dads who were considered “a regular source of care for their children under age 15, up from 26% from 2002.” The definition used by the U.S. Census considers “regular care of children” as an arrangement that is consistent at least one day per week.
So, could this perhaps be a movement that may increase the number of female CEOs? Possibly, but it’s important to realize that these are recent trends, and as such will need to continue for quite some time to really move the needle. With that said, it is clear that societal norms are shifting and slowly impacting the numbers.
While we may live in the 21st century, much of the population still holds onto the traditional picture of women staying-at-home. In a 2016 Pew Research Center Survey, when it comes to caring for a new baby, aside from breastfeeding, only 45% said mothers and fathers do equally as well.
Okay, I’ll admit it’s close to being equal but this may point to something beyond the surface level. This may point to the belief that despite all of the strides fathers have made with hanging up their traditional role as breadwinner, they are still considered a less-than-great fit parental figure to stay at home. So, an increase in female CEOs goes beyond just the surface of who is right for the job. It focuses more on an evolving reality that involves society as a whole changing their perspective when it comes to men or women being a better fit to raise a family. It seems that we have a way to go on either side of the aisle.
More Female Board Members Equals More Female CEOs
According to Fortune, there are 12 Fortune 500 companies with all-male boards. Some notable companies include World Fuel Services, Navistar International, and Sonic Automotive. When compared to companies in the S&P 500, there are only 5 companies that have no female board members most having at least one woman on their boards as stated in a recent study from PwC. When looking closer within the S&P 500, 25% reported having two female executive board members. While the numbers are not great, there seems to be an increasing trend for women. This in and of itself could create additional pathways to the CEO job.
The Rise Of Remote Work
With the advancement of technology, remote work has risen significantly over the past years. In 2017 alone as much as 2.9% of the U.S. workforce work from home at least half the time according to a recent 2017 report by flexjobs. This is up a notable amount as it has increased by over 115% since 2005. So, there is the potential for even executives, both men and women to embrace this trend. Many CEOs embrace the idea of remote work for their employees and some even embrace it themselves. One prime example of a CEO who works remotely in her executive position is the CEO of BELAY, a virtual service company; Shannon Miles.
Shannon Miles is a prime example of how one can work remotely as a C- suite employee and run a thriving business. In a recent Forbes interview Mile’s challenges the traditional ideal of women making a choice between their career and family stating that “when it’s time to start a family, we have to make a choice: either all that goes out the door and we stay home, or we keep hustling and climbing the ladder. I challenge that”. By challenging this, Miles built her company from 2 to a boasting 600…oh, and did I mention she did it all remotely from home? Furthermore, I push you to challenge the societal norm of working remotely, and ask “if this CEO can, why can’t others”?
Could Technology Mean There’s A Silver Lining?
Ah, technology, the key to making remote work possible. Luckily, nowadays you can have your pick of multiple tools and devices to make it possible. From Salesforce to SharePoint to Slack, there is a solution to ensure all information is communicated to all team members, from the entry-level to the CEO. Wait, but what about conferences and meetings? Well, as the saying goes there’s an app for that.
From Apple’s Facetime to Skype, to Google’s Hangout, there’s a virtual solution for many. Okay, so what about when CEOs travel and need to hop on a plane? Well, this doesn’t occur as often as you would think. According to a survey conducted by the Harvard Business Review of the 1,000 CEOs surveyed only 8% spent their time traveling.
In need of something more convincing? Well, take it from the CEO Matt Mullenweg, of Automattic the maker of WordPress.com, and see what tools he keeps in his arsenal to keep his workers connected in and outside the office. When it comes to the main tools he uses, it may surprise you. Mullenweg states, “Our lifeblood today is Slack and [a WordPress theme],”we created called P2,” The unique P2 platform allows for inline comments and editing, as well as real-time updates. While text can lose some of its meaning in transmission the use of Zoom and Google Hangout take the conversation a few steps further. Toni Schneider, who served as CEO from 2006 to 2014 of Automattic says “I would probably say the biggest breakthrough for us was really when [Google] Hangouts started to come along, and really the idea of group video conferencing all of a sudden became very doable”.
Now, what about other business functions CEOs must tend to such as production, well simple email, text and the use of the tools above may suffice.
Final Thoughts
Although the number of females in the CEO chair can’t significantly climb overnight, it remains vital to continue to welcome more on the executive board to support their initial climb to the top. Additionally, increasing the number of women in the C-suite involves a social shift in roles of the next and current generations where both women and men are taking a place in the home as the primary caregiver. Furthermore, despite the recent decline in the number of women taking executive level positions, I believe the increasing remote workforce and the geometric pace of technology show promise in offsetting this to some extent.
While it may take many years to increase the number of female executives in the C-suite, I think things are going to move in the right direction. Giving people options, creating flexible yet effective workforce solutions and making sure that we are not forcing our brightest and capable resources to have to choose a side in their career or family. If this can be done for men and women alike, I think we will see that over time the numbers will look much different than they do today.