Gender-Gap in CEOs in the United States

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Gender-Gap in CEOs in the United States
Gender-gap in leadership positions is not a new topic since it has been in discussion for a long time. The United States (U.S.) is not exceptional when it comes to gender-gap issues despite having a constitution that protects and provides equal rights for everyone. Society should be able to provide platforms and opportunities for all citizens regardless of their gender, and this forms the basis of equality. However, the number of female CEOs has been on a significant decline in the U.S., with a report by Miller indicating that the number decreased by 25% in 2018. This raises questions on the factors affecting the placement of women in leadership positions, hence the need for more research. Specifically, it is important to address why women deserve equal representation in CEO leadership positions, especially in the U.S.
First, women in leadership positions have been associated with increased productivity and performance. A report by Wechsler revealed that women leaders increase profits threefold in comparison to men leaders running S&P 500 companies. This indicates that women are more likely to increase productivity and profits when given leadership positions than men. The advantage of this is that it increases shareholders’ value and further attracts new investors who are ready to take a piece of the profits. Generally, organizations’ main purpose is to increase value for investors, and almost everything else is secondary. Thus, for any company willing to please their investors, the key would be to appoint a female CEO and also increase the number of women in other leadership positions. The good performance of women in leadership positions could be attributed to their high qualifications. According to Donovan (2), women CEOs of the Fortune 500 companies had more academic degrees in areas such as science and mathematics than their male counterparts. This could explain the performance of women CEO because such degrees are associated with problem-solving skills and innovation. The current corporate world is faced with challenges that require effective problem-solving skills, and in most cases, the most competitive companies are those that can remain innovative, making these two skills the perfect ingredients for a successful career in the corporate world. Morgan and Jay posit that companies with more women in leadership positions are more competitive because they have outdone their male counterparts when it comes to company stocks. Further, women in leadership positions are better at reducing costs than their male counterparts, which is also a way of maximizing returns. Reduction of costs requires strategies that are both innovative and sustainable to ensure that the company survives even in very competitive industries. While the performance of women CEOs could be attributed to the fact that when more women are in leadership positions, there is gender diversity, it only puts more emphasis on why it is important to support and promote women in leadership positions.
Second, hiring women in CEO positions creates gender diversity in boardrooms and improves the decision-making process. As noted by Gunter (93), having a diverse group reduces the chances of making poor decisions as a result of failure to explore all avenues because a diverse group widens the pool of views and ideas regarding the issue under discussion. As such, bringing a woman CEO on board ensures that a new insight or perspective on different issues is included during board meetings. The likelihood that a woman’s approach to an issue will be different from a man’s perspective is very high, which creates an advantage to organizations that are faced with new challenges every day. Gunter (93) opines that a majority of boards is purely male and this leads to a “one-dimensional” view and examination of critical issues. Therefore, based on this, the idea of having at least one woman in a board would eliminate this one-sided approach, mostly because throughout their lives and careers, women have had different experiences in comparison to men. This would also be beneficial to organizations and the country in general because the U.S has been on the frontline for years in the fight against gender imbalance. Aside from the diverse ideas and insights provided by female CEOs, companies can also benefit largely from a true representation of their market, which in most cases are also diverse. Companies such as Facebook have been on the receiving end in the past for lack of women in their boards, which indicates that the world is watching and companies appointing women as CEO will build on their reputation.
Third, having a woman CEO also implies that the rest of the departments will follow suit in giving women equal representation in the organization. Gunter (94) posit that an organization’s top leaders are responsible for setting the overall organizational climate. Therefore, a position such as the CEO comes with respect and if a woman is appointed as the CEO, the rest of the female employees will also be regarded with respect because a climate that embraces women and their role in the organization has been provided. Not only will women CEO influence the organizational climate in their company, but they will also influence and set a pace in their industries. Having a woman as CEO would also set an organizational climate that supports women in their career and personal lives, thus creating the very much demanded work-life balance. For instance, Dezso, Ross, and Uribe (6) indicate that having more women in leadership positions would increase the pressure to formulate policies on maternity leave and flexible working hours, aspects that are fundamentally important to women. This is likely because a female CEO will require such policies and since she is part of the decision-makers, she could easily influence the decisions made about the well-being of women. Also, a woman CEO is likely to have the back of fellow women and can, therefore, help them mitigate the constant barriers f...