Gender gap endures: 90% of company CEOs remain male in 2024

Despite years of effort toward gender equality, Australia’s top business ranks continue to show a significant imbalance, especially in leadership pipelines. According to new data from Chief Executive Women's (CEW) annual survey, progress in gender diversity among CEO pipeline roles has stagnated. 

The report reveals that 82% of these roles in ASX300 companies are still held by men, and nearly half (46%) of Australia’s top 300 organizations have no women in their leadership pipeline at all in 2024. These findings spotlight the persistent challenges in advancing gender equality in Australian corporate leadership.

Stalled progress in gender diversity

Gender equality in the executive ranks of Australia’s top companies has been a slow process, but new data suggests that progress may have ground to a halt. In 2024, 9 out of 10 CEOs of ASX-listed companies are men, reinforcing the long-standing gender gap in top business roles. Although there has been some success in reducing overt bias, harassment, and discrimination in workplaces, the subtle and ingrained barriers that hold women back from senior leadership positions remain pervasive.

Dr. Lois Frankel, an executive coach and author who has conducted extensive research into the state of women in the workplace, explained that while some women believe progress has been made, most feel it is insufficient. "On the surface, it appears that fairly good progress has been made because there is less overt bias, harassment, and discrimination. In reality, however, much of this is more subtle and harder to identify," she said.

Frankel's research, based on a sample of 42 Australian women, found that while 38% of respondents felt there had been "pretty good to significant" progress in the past decade, the majority (55%) believed not enough progress had been made, with 2% stating that no progress had been made at all.

Gender equality: Still a long way to go

One of the key findings of the CEW survey is that the gender gap in CEO pipeline roles is widening. The number of female CEOs leading ASX300 organizations dropped slightly from 26 in 2023 to 25 in 2024. The percentage of female CEOs in ASX200 companies has stagnated. This slow or even backward movement has raised concerns among advocates of gender equality.

Dr. Frankel pointed out that globally, gender parity may not be achieved for another 90 years if progress continues at the current rate. "Only five out of the 68 CEOs appointed globally in the first quarter of 2024 were women," she said, underscoring the global challenge in closing the gender gap in leadership.

Dr. Nora Koslowski, co-founder and co-CEO of EVEN, a professional development platform for women, and executive in residence at Melbourne Business School, echoed these concerns. She noted that while there have been significant gains on the policy and organizational front in recent years, progress in women’s workplace advancement has been glacial. “Unfortunately, what’s disheartening is that while there’s been a lot of progress over the past 10 years or so, we are now seeing a decline in 2024,” Koslowski said.

Women’s progression barriers: The ‘broken rung’

A critical issue highlighted in the CEW data is the 'broken rung' women face on their journey to leadership. Women remain far less likely than men to enter managerial roles, which serve as a key stepping stone to executive positions. This broken rung is particularly challenging for women from diverse backgrounds, such as women of color, LGBTQI+ individuals, and those with disabilities, who face even more significant barriers in their careers.

McKinsey's 2024 "Women in the Workplace" report showed that for every 100 men promoted to managerial roles in American organizations, only 81 women were promoted—a decrease from 87 women in 2023. This disparity was even starker for culturally diverse women, with only 54 Black women and 65 Latina women promoted for every 100 men.

Dr. Koslowski stressed that this trend is evident in Australia as well. A 2023 survey by Diversity Council Australia, which included over 370 culturally and racially marginalized (CARM) women, found that 65% agreed that CARM women received fewer career advancement opportunities than other women, and 85% felt they had to meet a higher standard to receive the same evaluation.

These barriers significantly hinder women’s ability to ascend to leadership roles, creating a dearth of female talent in the CEO pipeline. The fact that nearly half of Australia’s top 300 companies have no women in their leadership pipeline at all is a stark reminder of the systemic issues that continue to persist.

Structural inequities in the leadership pipeline

According to CEW, even when women hold positions on executive teams, they are far less likely to be in roles that lead directly to the CEO position. These roles, often referred to as CEO pipeline roles, typically involve profit and loss (P&L) responsibility, such as Managing Director, Chief Operating Officer, or Chief Financial Officer. The underrepresentation of women in these roles is a symptom of deeply entrenched structural inequities and gender norms.

Dr. Koslowski emphasized that these structural barriers are not just about individual choices or capabilities but are rooted in the inequitable opportunities available to women. From educational preferences to societal expectations about caregiving responsibilities, women face significant challenges that limit their career progression.

Building a more inclusive leadership pipeline

For HR leaders and business executives, diversifying the leadership pipeline requires intentional action. One key strategy is implementing practices such as blind recruitment and skills-based hiring to eliminate organizational biases. Ensuring balance within hiring panels and evaluating internal mechanisms for executive sponsorship are also critical steps.

“It’s not necessarily about who applies for a job, but about who is sponsored into a job or who is nudged to apply for a job. If you’re a leader in an organization, who are you inviting into that pipeline?” Dr. Koslowski asked.

Investing in women for long-term gender equity

As businesses navigate an increasingly disrupted global landscape, the value of non-traditional leadership qualities, such as human-centric skill sets, is becoming more evident. This shift could open new pathways for women and other underrepresented groups in leadership roles.

However, achieving meaningful progress requires a strong commitment to gender equity at all organizational levels. Leaders must invest in women’s career development, support network building, and be conscious of who is promoted into the talent pipeline.

“If you’re trying to solve some of these problems, you need to invest in your women,” Dr. Koslowski concluded. The journey to gender parity in corporate leadership may be long, but with focused efforts and systemic change, the goal can be achieved.