Why We Don’t See Women as Leaders and Why This Matters

The number of women leaders in the largest companies in the United States declined by 25 percent this year, as reported by Claire Cain Miller of the New York Times. Because the number of female chief executives is small to begin with, the departure of even one, such as the recent departure of Denise Morrison as the CEO of Campbell Soup Company, has a big numerical impact. In fact, the number of female CEOs has dropped from thirty-two to twenty-four in the past year. Why does it matters that so few women are CEOs and that the numbers are declining? One reason is that unconscious assumptions about gender determine who gets seen as leadership material when managers need to hire or promote. In a study reported by Heather Murphy of the New York Times, both women and men almost always draw a man when asked to draw an effective leader. Murphy reports on another study where research participants were asked to listen in by phone to a fictional sales meeting. In some of the “meetings,” study participants heard “Eric” offer change-oriented ideas while other participants heard “Erica” read the same script. When research participants were asked to rate the speaker, either Eric or Erica, on how much he or she had exhibited leadership, the Erics were far more likely than the Ericas to be identified as leaders, even though the Ericas shared exactly the same ideas. Murphy cites Nilanjana Dasgupta of the University of Massachusetts at Amherst, who explains that “when people are consistently exposed to leaders who fit one profile [male], they will be more likely to notice leaders who fit that same profile in the future.” In other words, even when a woman acts like a leader, her talents are less likely to be noticed or identified as leadership because the generally accepted profile of a leader is a man. This inherent bias is why it matters that the number of women in high visibility CEO roles in big companies is declining. Murphy points out that we need to see more women in leadership roles to expand our unconscious assumptions about who can be an effective leader—and instead the numbers are declining. In fact, depressingly, every female executive who stepped down during the past year was replaced by a man. Miller notes that the obstacles for female executives are rooted in biases against women in power. In fact, Miller cites two studies to make her case:

  • Both women and men have families, but caregiving is considered to be a woman’s problem and, therefore, limits the opportunities made available to women.
  • Leadership ability does not appear to be affected by gender differences. A study of 2,600 executives found no difference in multiple areas assessed, including interpersonal skills, analytical and managerial skills, and general ability. Yet women were much less likely to become chief executives.
This problem is clearly a vicious cycle. Because we don’t see women in executive roles, women don’t get the opportunity to be hired or promoted into executive roles. We have to keep challenging both women and men to examine their unconscious biases about who can be an effective leader. We must also continue to push for more women on corporate boards who will hopefully push for more women to be considered for CEO roles, and we need to elect women to office where they can raise these issues legislatively. Let’s keep asking, “Where are the women?”   Photo courtesy of Vector Open Stock (CC BY 2.0)]]>

CFO: One Role Where Women Make More Than Men

The recent focus on the gender-wage gap has raised awareness for several young women in my life who are clear that they do not want to be paid less than men for doing the same work. Do you know a young woman who is looking for a career where women make more than men? According to Sarah Skidmore Sell of the Orange County Register there is one: CFO (chief financial officer). The high pay for women CFOs is not due to women outnumbering men in the position—a recent survey found only 60 female CFOs at S&P 500 companies compared to 437 men. Sell reports that “the median pay for female CFOs last year rose 11 percent to $3.32 million. Male CFO pay rose 7 percent to $3.3 million.” Sell also acknowledges that the high median pay for female CFOs is partly a result of their small number and tendency to work for the largest companies, where compensation is higher than at smaller companies. Nonetheless, with all the emphasis these days on encouraging girls and women to consider training for STEM (science, technology, engineering, and math) careers, focusing on a finance career is another good option—and why aim for the top as a CFO? The CFO role has risen in importance since the financial crisis, when companies became aware of the need for a high-level role focused on both day-to-day operations and the long-term strategic view as the right-hand person to the CEO and the board. The CFO role is also now considered an excellent training ground for advancement to CEO.

Tips for Becoming a CFO

Carol Lippert Gray of the Journal of Accountancy notes that “there is no clear-cut path to the CFO suite,” but you can acquire skills and experiences to become CFO-qualified. Robert Half, of Robert Half Finance and Accounting, recommends the following steps to prepare yourself for a CFO role:
  1. Become a CPA (certified public accountant) or earn an MBA—or do both. A CPA license will give you training in a wide range of skills, including forensic accounting and compliance. An MBA will increase your understanding of business operations.
  2. Widen your customer service experience.
  3. Broaden your understanding of technology.
  4. Position yourself as a team builder and consensus seeker, which will encourage people to trust your judgment.
  5. Consider comptroller and treasurer positions, both of which can increase your experience with funding and strategy execution in preparation for CFO duties.
CFOs report high levels of satisfaction with their role. The journey to get there is long, but CFO could be a great career goal.   Photo courtesy of Financial Times (CC BY-SA 2.0)]]>