Female CEOs are more qualified than male CEOs, says new report
Barriers and Breakthroughs: A Data-Driven Look at Women CEOs at America's Largest Corporations, conducted by Women's Power Gap, analyzed the career paths of all current S&P 500 CEOs, and its results challenge the misconception that women reach CEO roles through lowered standards or diversity quotas.
In fact, it found that women CEOs are 32 percent more likely than men to have served as company president before becoming CEO, reflecting an additional step in leadership experience.
In contrast, men were more likely to advance from division head positions (29 percent v 23 percent) or COO (17 percent v 8 percent) than women.
Additionally, women are more likely to have served as chief financial officer (CFO) prior to becoming CEO. Some 10 percent of female CEOs held this role compared to 6 percent of male CEOs, indicating strong financial expertise among women leaders.
Yet, despite all this experience women remain underrepresented at CEO level. Though in 2024, women comprised 17 percent of newly-appointed CEOs (11 of 64), only 48 women led S&P 500 companies (10 percent), up from just nine per cent in 2000.
Frustratingly, the report identifies a phenomenon that affects many women, which sees them stuck on the second-to-last rung of the ladder, not quite reaching the top.
Specifically, among S&P 100 companies, women occupy 24 percent of the three main launch positions (COO, president, and head of division/regional market), yet only 8 percent of CEO positions.
Whereas men hold 76 percent of launch positions, and 92 percent of CEO roles.
The report also highlights the uneven distribution of women across particular executive roles.
Some 76 percent of CHRO roles are performed by women, while 56 percent of Chief Marketing Offers are also women.These roles are less frequently linked to the CEO track; men are three times more likely to take profit-linked roles that lead to CEO opportunities.
No women founders serve as CEOs of S&P 500 companies, compared to 29 men who are founders and CEOs, indicating a gap in entrepreneurial leadership.
Women of color face even greater underrepresentation. At the time of the report, there were no Black or Hispanic women CEOs in the S&P 500, and only six Asian women CEOs, while men of color held a higher share of CEO roles.
Things aren't a whole lot better for non-white men either. Asian, Black, and Hispanic men comprised 37 (7.4 percent), eight (1.6 percent), and 17 (3.4 percent) of the CEOs, respectively.
Meanwhile, among the highest paid executives in S&P 100 companies, women of color represented three percent, while men of color represented 18 percent.
The report concludes that though we have women CEOs at major corporations like Oracle (Safra Catz), Accenture (Julie Sweet), and GM (Mary Barra), there is still a long way to go.
As explored previously on The Hill, a 2022 study from three U.S. academics entitled 'Potential' and the Gender Promotion Gap, revealed men are often promoted for showing promise, while women are expected to have achieved something significant first.
Advanced AI resume screening software, like Dash, can be trained to ignore names and any details that give away an applicant's gender, ensuring a much more equitable hiring process.
However, for very senior roles like CEO, promoting and sourcing candidates is more likely to be person-to-person, relying heavily on internal networks and direct relationships, rather than broad external searches.
It's clear that closing the leadership gender gap in America's largest corporations still requires continued effort. And Women's Power Gap's report calls on companies to remove structural barriers, and foster merit-based culture to ensure equal opportunities for all aspiring leaders.
If you're not on the CEO track in your organization, but want to advance your career or explore senior leadership opportunities, check out The Hill's job board, which offers a wide range of senior positions across government, policy, and corporate sectors.
Ready to find a new role? Browse thousands of jobs on The Hill Job Board
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Nvidia Stock One of the Best to Own in Q3
Nvidia Corp (NASDAQ:NVDA) just became the world's most valuable company in history. The shares hit a record high of $160.98 today, up 19.1% since the start of 2025. For those betting on even more highs for the , it's worth noting that the stock rarely disappoints in the third quarter. Per Schaeffer's Senior Quantitative Analyst Rocky White, NVDA finished the third quarter positive in eight out of the last 10 years, making it one of the best S&P 500 Index (SPX) stocks to own during this time. For the three-month period, the equity has averaged a 14.4% return, and another move of this magnitude from today's peak would put the shares at $184.16. Now looks like a good time to weigh in with options, too. NVDA's Schaeffer's Volatility Index (SVI) of 32% ranks in the low 1st percentile of its annual range, meaning options traders are pricing in low volatility expectations. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
an hour ago
- Miami Herald
Fannie Mae Chair Pulte drops grim message to Fed Chair Powell
It's getting real. The Trump administration's war of words targeting Fed Chairman Jerome Powell's stance on interest rate cuts ramped up this week. Fannie Mae Chairman and Director of the Federal Housing Finance Agency Bill Pulte released a statement calling on Congress to investigate Powell. Pulte suggested that Powell should vacate his role at the Fed because of multibillion-dollar plans to renovate the Federal Reserve building and comments to Congress regarding the upgrades. Don't miss the move: Subscribe to TheStreet's free daily newsletter The formal statement increases the heat on Powell, who has drawn the ire of Donald Trump for refusing to lower interest rates in 2025. Pulte has questioned the Fed's decision to shift to the sidelines as politically motivated because the Fed reduced interest rates by 1% late last year when President Biden was still in office. The Fed's dovish tilt in 2024 led many to expect the Fed would announce additional cuts in 2025, providing mortgage relief to home buyers and those hoping to refinance their mortgages. However, the Fed has instead put rate cuts on hold, which could have dire consequences for the economy if it weakens. Image source: Williams/CQ-Roll Call, Inc via Getty Images Powell infamously incorrectly labeled inflation in 2021 as transitory, a major miscalculation that allowed inflation to take hold and accelerate to over 8% in 2022. If Powell had acted faster to raise rates, the Fed may have avoided embarking on the most hawkish rate policy since former Fed Chair Paul Volcker fought inflation in the 1980s by sending interest rates to double digits. Related: Veteran analyst sets eye-popping S&P 500 target The Fed's rate hikes in 2022 and 2023 successfully lowered inflation below 3%, but higher rates have caused cracks in the job market. The unemployment rate was 4.1% in June, up from 3.4% in 2023. The Fed's dual mandate is low inflation and unemployment, two often contrary goals. When the Fed raises rates, it lowers inflation but slows economic activity, increasing unemployment. The opposite occurs when it lowers rates. Changes to the Fed Funds Rate influence everything from credit card interest to mortgage rates because it's the interest rate that banks charge each other when lending or borrowing reserves from each other overnight. There's been significant debate over the Fed's interest rate policy this year, mainly because of President Trump's tariffs. Since February, the White House has placed 25% tariffs on Mexico, Canada, and autos. It has also enacted a 30% tariff on China and a 10% baseline tariff on all imports. Most economists agree that tariffs can increase consumer costs. However, there's disagreement over whether their impact on inflation is temporary or lasting. More Federal Reserve: Fed interest rate cut decision resets forecasts for the rest of this yearFederal Reserve prepares strong message on long-term interest ratesFed official revamps interest-rate cut forecast for this year Companies will likely absorb some tariffs, but most, including Walmart, have suggested that at least some of the import taxes will be passed along to buyers. Chairman Powell decided to keep rates at their current range of 4.25% to 4.5% last month, citing uncertainty over the impact of tariffs on inflation. Powell's refusal to cut rates has led to sharp criticism from President Trump, who has called Powell "Mr. Too-Late" and a "numbskull" over his policy decision. President Trump has also threatened to remove Powell from his role at the Fed, despite the Fed's long-standing autonomy. Related: Bank of America sends bold message on looming jobs report Rumors have also swirled that President Trump may try to appoint a shadow Fed chairman, and some suggest Treasury Secretary Scott Bessent could win the nomination for the Federal Reserve when Powell's term expires in May 2026. President Trump isn't the only member of the administration on the offensive. Bill Pulte has recently ratcheted up rhetoric, too, saying Powell should resign from office immediately for keeping rates high. High rates hit home buyers hard because the Fed Funds Rate helps determine Treasury bond yields, and banks often use the 10-year Treasury Note yield when setting mortgage rates. On July 2, Pulte released a statement from the Federal Housing Finance Agency (FHFA) asking Congress to investigate Powell, and calling for Powell's dismissal: Pulte focused particularly on Powell's role in overseeing a major $2.5 billion renovation project on the Federal Reserve building. Given his social media comments, Pulte's statement likely won't be the last we hear on the matter. "How does one spend $2.5 billion on a building renovation? Something smells," wrote Pulte on X. "Where did the $2.5 Billion go?" Pulte's barrage continued on July 3, with him posting on X, "It's funny to see elite commentators try to justify Powell's Renovation Scandal, as if spending $2.5 billion on a building renovation isn't corruption or at a minimum, malfeasance." Related: Federal Reserve chair sends strong message on July interest rate cut The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
an hour ago
- Business Insider
The jobs report has dashed hopes of a rate cut this summer
Say goodbye to the prospect of a rate cut this summer. Investors have slashed the odds of an interest rate cut from the Federal Reserve this month after data released Thursday indicated the job market was unexpectedly strong in June. The robust jobs report gives the central bank room to keep interest rates elevated, with employment strong and inflation remaining above its 2% target. The report indicated that employers added 147,000 jobs to the economy last month, handily beating expectations of 110,000. In another sign of strength, payrolls for May were revised upward to 144,000, and the overall unemployment rate unexpectedly ticked down to 4.1% from 4.2%. According to the CME FedWatch tool, the perceived chances of the Fed cutting rates by 25 basis points plunged Thursday morning, dropping from a 23.8% chance Wednesday to 6.7% after the release of the jobs report. Markets still see a September rate cut as likely, with odds of about 71% after the jobs report. Stocks moved slightly higher as traders cheered the strong data, but dimmer rate-cut views kept a lid on more pronounced gains. Still, the S&P 500 managed to rise to a fresh intraday record of 6,271. The bigger reaction to the jobs data was in the bond market. Yields jumped on the prospects for the Fed to keep rates higher for longer. The 10-year US Treasury yield jumped 4 basis points to about 4.34%. The yield on the 2-year Treasury, which is the most sensitive to Fed policy, spiked 9 basis points to 3.88%. "The firm June unemployment rate waves the Federal Reserve off the possibility of a July rate cut, which shifts the spotlight to September," Mark Hamrick, a senior economic analyst at Bankrate, wrote in a note. "If businesses keep expanding payrolls like they've done so far this year, the Fed can comfortably sit in 'wait and see' mode at the upcoming policy meeting. Uncertainty around tariffs and trade have apparently not spooked businesses into shedding workers," said Jeffrey Roach, the chief economist at LPL Financial. Pressure on Powell The report is unlikely to lead to rate cuts this month, which means the Trump administration's withering criticism of Fed Chair Jerome Powell could intensify. Powell has signaled the central bank is comfortable holding interest rates steady while the central bank monitors the path of inflation and any impact from tariffs. This week, Powell said the Fed would have cut rates already were it not for Trump's trade war. Trump, who has harangued Powell to cut rates for years, posted on Truth Social on Wednesday suggesting the Fed chief leave his position. "' Too Late ' should resign immediately!!!" Trump wrote, referring to the nickname he has frequently called Powell to express his annoyance at not cutting interest rates earlier. Trump's post also linked to an article detailing a post on X from William Pulte, the FHFA director, who suggested that Congress should investigate Powell. Pulte has criticized Powell for hurting the housing market by keeping rates high. "Like this tweet if you think it's time for Jerome Powell to resign," Pulte said in a separate post Wednesday evening. According to the latest Freddie Mac survey, the 30-year US fixed mortgage rate hovered at about 6.77% last week. Still, Powell looks likely to stand pat on interest rates, even amid escalating political pressure, Bankrate's Hamrick said. "He is determined to serve out the remainder of his term not being swayed by political pressure or blunt criticism from the president," he added. "Indeed, the president's pressure could have the opposite of the intended impact." Others have speculated that Trump's criticism only makes it less likely that Powell will bend and lower rates. Observers say Powell may now be more focused on his legacy of protecting Fed independence.
