New Research Predicts Notable Change in C-Suite: Women Will Be a Third of Big-Company CEOs Before Mid-Century

NEW YORK, NY--(Marketwired - Jun 5, 2014) - More women are receiving and accepting big-company CEO jobs, but the numbers remain strikingly low according to a new study by Strategy&, a member of the PwC network of firms, especially compared with where women now stand in the global labor force, in entrepreneurship, in education, and in the professions.

Women comprised only 3% of new big-company CEOs in 2013, a 1.3 percentage point drop from 2012. However, over the past five years the percentage of new CEOs who were women (3.6%) was notably higher than in the previous five years (2.1%) -- so the overall trend is improving.

But compared with numbers elsewhere in the global economy, these figures are tiny. Women represent more than half of university students around the world, and they comprise 30% of the students at the top business schools.

The authors of the Strategy& (formerly Booz & Company) study, however, project notable gains on the CEO front. "As much as one third of the incoming class of CEOs will be women by 2040, based on a 10-year trend in our data, ever higher education of women, continuing entry of women into the business workforce, and changing social norms of corporate leadership around the world," said study co-author and Strategy& Senior Partner Ken Favaro.

Those are among the findings and insights of Strategy&'s 14^th annual Chief Executive Study, which examines CEO turnover at the world's 2,500 largest public companies. The current study looks at women CEOs over the past 10 years as well as overall succession trends with a focus on 2013's incoming class of CEOs.

In conjunction with the study, Strategy&'s leading business magazine, strategy+business, has published "The Lives and Times of CEOs." The article, co-authored by the study authors, Strategy& senior partners Ken Favaro, Per-Ola Karlsson and Gary L. Neilson, explores how the role of the CEO has changed since 1914 -- and what, in addition to more women peers, tomorrow's CEOs can expect. To read the full article online, please visit http://www.strategy-business.com/article/00254?gko=50e6a.

Among the other study findings on women CEOs at the largest companies:

• Only 65% of women appointed to CEO positions between 2004 and 2013 were from inside the company, compared with 78% of men CEOs appointed in the same period, suggesting that companies aren't doing enough to prepare women as candidates for leadership.
  
  
• Women are more often forced out of CEO roles than men. Over the past 10 years, 38% of women CEOs who left office were forced out (as opposed to being part of planned successions or leaving because of mergers), compared with only 27% of men.
  
  
• The industry with the lowest percentage (0.8%) of women CEOs between 2004 and 2013 was the materials industry.
  
  

"Women are becoming more prevalent at the top of the world's largest companies -- a trend that will only continue to grow," said Favaro. "Companies need to plan how they will seek out and prepare their future women CEOs for leadership."

To view the full report summary, visit www.strategyand.pwc.com/chiefexecutivestudy.

To arrange an interview with one of the report's authors, please contact Frank Lentini, Sommerfield Communications, 212-255-8386 or Anna Moreno, Strategy&, 212-551-6110.

About the 2013 Chief Executive Study

For 14 years, Strategy& has examined CEO turnover and the incoming class of CEOs at the world's largest 2,500 public companies, because determining what happens at critical decision points can help us understand what companies are looking for in their CEO and how the role is changing. Along with overall succession trends, this year's study looks at 2013's incoming class of CEOs, and also focuses on women CEOs over the last 10 years.

This study defines the world's 2,500 largest public companies by their market capitalization as of January 1, 2013, according to Bloomberg. Each company that appeared to have changed its CEO was investigated for confirmation that a change occurred in 2013, and additional details were sought for both the outgoing and incoming CEOs.

About Strategy&

Strategy& is a global team of practical strategists committed to helping you seize essential advantage. We do that by working alongside you to solve your toughest problems and helping you capture your greatest opportunities. These are complex and high-stakes undertakings -- often game-changing transformations. We bring 100 years of strategy consulting experience and the unrivaled industry and functional capabilities of the PwC network to the task. Whether you're charting your corporate strategy, transforming a function or business unit, or building critical capabilities, we'll help you create the value you're looking for with speed, confidence, and impact. We are a member of the PwC network of firms in 157 countries with more than 184,000 people committed to delivering quality in assurance, tax, and advisory services. Tell us what matters to you and find out more by visiting us at strategyand.pwc.com.

About PwC

PwC helps organizations and individuals create the value they're looking for. We're a network of firms in 157 countries with over 184,000 people who are committed to delivering quality in assurance, tax and advisory services.

PwC has one of the world's largest treasury advisory groups, providing a broad range of complementary treasury, banking, technology, taxation, accounting and programme management skills. We have worked with many of the world's leading corporations to support change in treasury practices and have an enviable track record of successful solutions-based work. We have an extensive knowledge base of treasury standards of the leading corporations. By combining this knowledge with the multi-disciplinary skills of the team, we provide creative and practical solutions to meet the requirements of our clients.

Tell us what matters to you and find out more by visiting us at www.pwc.com.

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