As the business landscape continues to evolve with many female leaders breaking barriers and rising to success, Belfort Group’s Drew Vaughan poses the following questions:
How have the perceptions of female leaders and CEOs and the challenges they face evolved over time?
The perceptions of women leaders and the challenges they face have been studied and written about for several years in academia, in popular books like Lean In and When Women Lead and in countless media articles and podcasts. We have learned that women leaders and CEOs face numerous challenges, for example, a lack of mentorship and championing, an effectiveness v. likability dichotomy, and gender stereotypes. Not to mention bumping up against the glass ceiling and falling off the glass cliff. One study out of Penn State found that when companies announce women appointees in glowing terms with a lot of fanfare, they have shorter tenures in that new position. According to the research, big announcements may subject the woman CEO to more stereotyping than women announced with less fanfare [1]. Recognizing these obstacles and more, California passed a law requiring gender quotas on boards of companies headquartered in that state, the first of its kind in the U.S. The law was ultimately ruled unconstitutional; however, it started a conversation about creative ways to get good talent.
While some states have and continue to contemplate different and creative ways to reduce barriers for women leaders, not much has changed in terms of perceptions and challenges; they still exist. The reasons for the obstacles and potential solutions are varied. The more we see women in leadership and executive positions, the more normalized it becomes. Increasing mentorship, championing opportunities, and checking biases and stereotypes in decision-making are good places to start.
In your opinion, what barriers still exist for women aspiring to reach top leadership positions, and what can be done to overcome these barriers?
The fact that only 10.4% of U.S. Fortune 500 companies are run by women, and only two Fortune 500 companies are run by African American women tells us barriers still exist. And when women do lead a Fortune 500, their time in the role is much shorter than men. One barrier that exists for women aspiring to reach top leadership positions is the traditional route to those positions. Often, succession plans include targeting an internal candidate, someone who has been in the C-suite. These positions are largely male dominated. Women are less likely to hold the positions that are considered a pipeline to CEO, such as COO or CFO [2].
Thankfully, running a Fortune 500 company is not the only option for leadership roles. According to a report from Wells Fargo, women-owned businesses represent almost 40% of all businesses, employing 12.2 million people and generating $2.7 trillion in revenue. The number of women-owned businesses grew by double the number of men-owned businesses from 2019-2023. During this same period, women-owned businesses’ growth rate exceeded the rate of male-owned businesses by 94.3% for the number of businesses, 252.8% for employment, and 82% for revenue [3].
Of course, to sustain this growth, women founders need access to capital, and in 2023 women-only teams pulled in just 2.8% of all venture funding [4].
Can you provide examples of successful female leaders who have made significant contributions to their respective industries?
There are so many examples!
Erika Ayers Badan, for example- she is terrific. Already a powerful advertising and sports media player, she took Barstool Sports, then a small company described by founder David Portnoy as a “bunch of average Joe’s, like most guys, love sports, gambling, golfing…and chasing short skirts” and grew it from a 15-million-dollar company in Milton, Massachusetts to a $300 million diverse business. Unlike the trap of a glass cliff, Ms. Ayers Badan beat out many men for the spot, came in, and executed her strategies for growth.
Another that comes to mind is Indra Nooyi, the former Chairwoman and CEO of Pepsi. She is consistently considered one of the world’s most powerful women. During her 24 years at Pepsi, 12 of them as CEO and Chair, throughout her climb, she has mentored and nurtured talent.
Make-up artist and entrepreneur Bobbi Brown is a groundbreaking leader. She founded her super-successful make-up brand Bobbi Brown Cosmetics which she sold to Estee Lauder in 1995 at the age of 38. What sets her apart in my mind is as she was building her brand and company, she was unapologetic about what she needed to be successful, often bringing her young children to sets and shoots. Fast-forward to the expiration of her 25-year non-compete agreement and she has started another top-selling make-up brand, Jones Road, in her 60’s. Her social media and marketing are diverse, for all ages and skin tones, because her products are for everyone. What she has built is a testament to the power of diversity and inclusion.
Another example I look to, one that is closer to home, is Nia Grace, an African American restaurateur in Boston. Her restaurants are the first Black women-owned and Black-owned liquor-license holding supper clubs in Boston. Ms. Grace has been successful in creating intentionally welcoming, diverse spaces with top-notch food and live music. To blaze this trail meant that she had to force herself to be included. Key to her leadership style, Ms. Grace mentors and supports other Black-owned restaurants and bars in Massachusetts through the Boston Black Hospitality Coalition.
[1] Katie Bohn, The Way Women CEOs Are Announced May Shorten Their Tenure, PennState News, June 16, 2021. https://www.psu.edu/news/research/story/way-new-women-ceos-are-announced-may-shorten-their-tenure/
[2] Lila MacLellan, It’s Not Your Imagination. Women CEOs at Fortune 500 Companies Really do Have Shorter Tenures Than Men, Fortune, February 20, 2024.
[3] The 2024 Impact of Women-Owned Businesses, Wells Fargo, produced by Ventureneer, CoreWoman, and Women Impacting Public Policy.
[4] Melia Russell, Venture Capital’s Steep Decline is Leaving Female Startup Founders in the Cold, New Data Shows, Business Insider, December 7, 2023. https://www.businessinsider.com/venture-capital-decline-hurts-female-founders-gender-gap-startup-funding-2023-12
