Major Shifts Create New C-Suite Opportunities For Women In 2023

There’s a paradox in women’s career paths as we cross from 2022 to 2023. Or, maybe the economy is starting to catch up to the unique value of how women lead. Even as a record number of women walked out of their jobs, more women are finding their way to the C-Suite than ever – paving a new path to that coveted corner office.

“When you think about the environment, you think about social pressures and what's happened with the murder of George Floyd, for example, and how that's changed the conversation, you think about governance, you think about community and companies, footprints, and how they impact the communities that they live and work in, as well as sell to, all of those things are factors that companies have to take into consideration in thinking about who's the right person to lead us forward. So, I think that does have a very real impact on identifying who is that person who can manage through these very challenging times, and ESG (environment, social and governance) is a clear component of that.” Those are the words of Bonnie Gwin, Vice Chair and Co-Managing Partner, Global CEO & Board Practice of executive search firm Heidrick & Struggles, in an exclusive interview on Electric Ladies Podcast about their ground-breaking report on the massive changes in the C-suite.

Culture plays a larger role in the C-suite

“What has been interesting to watch there, is what that's meant for company cultures…. We've seen a lot of companies really needing to, and wanting to, authentically focus on how do you care for people, and that means you've got to be purpose led and mission led.”

It's dramatically changed the type of talent companies are seeking in the C-suite, which has opened the door for women.

Heidrick & Struggles found that twice as many women were elevated to CEO in 2021 than before (with increases in women elevated to other C-roles too), a trend that continued into 2022, with a record high of 8.8% of Fortune 500 CEOs being women. That is still a paltry 46 women out of 500, but it’s progress. Only 10 are women of color, though, including Roz Brewer, the CEO of Walgreen Boots Alliance, and Lisa Su, the CEO of Advanced Micro Devices, and only two are women who identify as LGBTQ+ – Beth Ford of Land O’Lakes and Sue Y. Nabi of Coty. It’s also changed how leaders communicate, according to a new S&P Global study.

“So that's changed a little bit of what companies are looking for in leaders,” Gwin explained. “Also, just the economic trends, the societal pressures that all the other changes that we're seeing. It means resilience, empathy, agility, ability to articulate, communicate, inspire people, keep people moving forward in very difficult times. All those are skills that a lot of CEOs have had in the past, but they've really moved to the forefront. And I think the result is boards are looking more broadly than they have in the past for who can match this moment, who can take us forward….So boards are looking in new places for these new skills.”

Women with sustainability and related skills “can ride that to the C-suite.”

That means women with ESG expertise and experience, women who maybe have been previously siloed in sustainability roles, now have a lot more leverage. “I think that we're at a point where there's a huge opportunity,” Kristina Wyatt, Senior Vice President and Deputy General Counsel of Persefoni and formerly at the Securities and Exchange Commission where she oversaw the development of the forthcoming climate risk disclosure rules enthused.

“This thing, sustainability, has been around for quite some time…(but people in those roles) haven't been at the table with the big boys making the big decisions…So here's where the opportunity for women comes in,” she explained. “Who were the CSOs? They were women mostly, who were sitting over there in those silos…But what's happening now is that, this focus on climate focus on human rights, human capital management, diversity equity, and inclusion, all of these things are making their way up to the board. They're making their way to the C-suite, they're becoming central investor issues. They're financial issues. So… I think this is a huge opportunity, because climate and ESG issues are moving in that direction and the women and particularly minority women, women of color who might be in these positions, they can ride that to the C-suite.”

Keys are to understand that financials and the rules of the game

Wyatt also emphasized the importance of mastering the financials in order to be taken seriously in these roles and succeed in them. “These women who are sitting over in the CSOs office need to make sure that they've got the chops on the financial piece, right? So, if you need to take courses, learn about how to read financial statements, get very familiar with your company’s financials, understand balance sheets, understand income statements, understand cash flow statements and how they work so that you can really speak the financial talk and understand how your sustainability issues integrate with your financial issues.”

As we saw in Speaker Nancy Pelosi’s masterful leadership, it’s also critical to understand how the game is played. That, coupled with understanding your colleagues’ – and your clients’ – agendas, needs and wants, enables you to be a strong negotiator. The women who negotiated the record-breaking equitable contract for the U.S. Women’s Soccer Team and for WNBA star Britney Griner said the same thing.