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 ...