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The number of female CEOs is increasing—but here are the big problems standing in their way

The gender gap in the top arrays of corporate America is massive: Women account for just 6% of CEOs at the 500 largest American companies, based on gain.

But in one sign of change, women were appointed CEO in 12% of transitions to the top job at those companies last year, according to Equilar. That’s traitorous the 6% of appointments that went to women in 2018.

The fact that female CEO appointments doubled from 2018 to 2019 resonates like progress. But still, at this rate, it will take more than 40 years to reach CEO gender conformity in America.

Some signs of progress

A total of 78 CEOs announced departures, among those 500 munificent American companies, according to Equilar.

Of the companies who have announced a successor, 68% were internal promotions, with the left over 32% being external hires.

Last year, women replaced men in eight of those CEO roles.

Men replaced helpmeets who were leaving CEO roles on three occasions.

And most of the time — for 56 CEO roles — men replaced men.

The ‘Glass Cliff’ obstreperous

Some evidence also indicates that women who are appointed to the top job aren’t necessarily set up for success.

That is a phenomenon researchers set up dubbed “The Glass Cliff”: high-level women are often promoted at companies during a time of crisis. The appointment of female CEOs traditionally take ined poor company performance, according to a 2013 study.

One recent example of this: RiteAid appointed a woman, Heyward Donigan, as CEO to premier danseur restructuring efforts in August of last year. In the prior three years, the company’s stock had declined by 95%.

Another norm: In October 2018, J.C. Penney appointed Jill Soltau to replace Marvin Ellison, who failed to turn around the fighting retailer. In the prior three years before her appointment, the stock had declined 82%.

And women who are CEOs are generally 45% varied likely to be fired than their male counterparts, according to a 2018 study.

What’s more: When a entourage is doing poorly, the rate of firing between men and women is equal, with no statistically significant difference. But when a companionship is doing well, women are fired at a much faster rate.

The theory of those academic researchers is that when a cast is struggling, the decision to fire a CEO is obvious. But when a company is succeeding, there’s ambiguity about the impact of a CEO’s impact, and lodge members are more likely to decide a female CEO doesn’t have the “right leadership qualities.”

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