Media release: 2024 Senior Executive Census — CEW calls for urgent action as gender equality stagnates in ASX300
Gender equality in the Australian Security Exchange’s top companies has come to a standstill, according to the findings of Chief Executive Women (CEW)’s annual census.
Released today, the CEW 2024 Senior Executive Census found the number of female CEOs in the S&P/ASX 300 has decreased from 26 in 2023 to 25 in 2024, suggesting the path to leadership for women appears to be narrowing rather than widening.
The alarming findings reveal that despite heightened awareness and public discourse about gender equality in Australian workplaces, 91 per cent of CEO positions are still held by men.
Key findings:
- Critical stagnation in CEO leadership: Female representation is now in decline, with fewer women CEOs in the ASX300 (-1) this year and women being appointed CEOs of ASX300 companies at a decreased rate to men (One in eight, versus one in four last year)
- CEO pipeline suggests progress is unlikely: 82 per cent of CEO pipeline roles are filled by men, and an increasing number of companies have no women leaders in pipeline roles
- Gender targets lead to some improvement at ELT level: 27 per cent of ASX300 companies have achieved gender-balanced Executive Leadership Teams (+4 per cent since 2023) and the number of companies with no women in their ELTs has decreased to 20.
CEW president Susan Lloyd-Hurwitz said it was the second time in the census’ eight-year history where there has been a decline in female representation at the most senior level, the first time being during the height of COVID-19.
"When it comes to leadership in corporate Australia, we are leaving some of our best talent on the bench. The sector has talked the talk on gender equality for years, but the numbers tell a different story – one of regression, not progression,” Ms Lloyd-Hurwitz said.
"Gender segregation in the workforce is not just a social issue — it's an economic one. Australia continues to have one of the most highly gender-segregated workforces in the OECD. By halving the gap between male and female workforce participation rates we could add $60 billion to Australia’s annual GDP over the next 20 years.
“Research, both in Australia and internationally, has found that companies with diverse leadership teams perform better. CEW advocates for a ‘40:40:20 by 2030’ gender target, which could unlock substantial economic growth and productivity. But the time for action is now.”
The census shows companies with gender balanced targets were 3.6 times more likely to achieve gender balance in leadership than those without.
CEW is calling on companies to invest in gender balanced CEO and leadership talent pipelines, set gender targets with real accountability, and build inclusive, flexible and respectful workplaces.
Workplace flexibility key to high performing teams
The CEW Census shows the top 100 companies in the ASX have a better representation of women at the senior level than their ASX101-300 counterparts. They are also more likely to have set gender targets, in recognition of the value of gender balanced workplaces.
The report highlights the critical importance of workplace flexibility to attracting and retaining talent. McKinsey found nearly half of women leaders consider flexibility a top factor in job mobility and 38 per cent of mothers’ report that without flexible work options, they would need to leave their company or reduce their work hours.
“Workplaces that have seen improvements in their diversity and retention lead from the top and have made systemic changes to cater to the needs of employees and their families. Workplace flexibility is not a trend, it's a necessity of a modern economy. Companies that fail to adapt will find themselves losing out on the best talent and the best outcomes,” Ms Lloyd-Hurwitz said.
Expanding the pathway to CEO leadership to enable talent pipelines
Despite a 4 per cent increase in the number of gender balanced ELTs, seven out of 10 ELT roles are still held by men. Critically, the census has found 70 per cent of women in ASX300 ELTs were working in non-pipeline roles, meaning they were unlikely to be considered for promotion to CEO. 46 per cent of ASX300 companies have no women in these critical feeder roles.
The report calls for a reevaluation of the traditional pathways to CEO roles, which are often limited to those that drive key commercial outcomes with profit and loss (P&L) responsibility. Research by Seramount shows men are three times more likely to be encouraged to consider a P&L role than women, and nearly half the men surveyed reported receiving detailed advice at work on how to chart their path to such a role, compared with 15 per cent of women.
By broadening the criteria to include roles such as human resources, strategy and marketing, companies can future fit their leadership teams while also delivering a gender diversity dividend.
"Leadership is about more than just managing a P&L. It’s time we expanded our definition of what makes a successful CEO to include a broader range of skills and experiences," Ms Lloyd-Hurwitz said.
The role of male leaders in fostering talent pipelines
Of the 25 female CEOs in the ASX300, 62 per cent were appointed internally, indicating internal support, development and sponsorship played a role in their success.
The census calls for further investment in gender-balanced executive pipelines, with sponsorship by male leaders seen as a critical lever for change.
“High-potential women who are sponsored, specifically by senior male leaders, are 20 per cent more likely to be promoted, yet they remain half as likely as men to have such sponsors. There is a huge opportunity for men to take real action to foster women in leadership,” Ms Lloyd-Hurwitz said.
The 2024 Senior Executive Census can be found here.
CENSUS PARTNERS
Attributable to Debby Blakey, HESTA CEO:
"Failing to tap into the talents of 50 per cent of the population represents a missed opportunity for companies and holds Australia back from realising its full economic potential. Persisting gender inequality represents a systemic risk that we believe can impact the long-term performance of our members’ investments.
“Studies have shown that companies with more women on their boards and in executive leadership can lead to stronger long-term performance.
“In Australia, women are still underrepresented in key decision-making roles in many industries. We believe ASX leaders should commit to change as it helps protect and enhance long-term shareholder value.”
Attributable to Shayne Elliott, ANZ CEO
“The CEW Senior Executive Census provides a critical data-driven perspective on the progress corporate Australia is making on gender equity. The mixed results highlight there is more to do.
“At ANZ, we believe in the inherent strength of a vibrant, diverse and inclusive workforce. Importantly, a diverse workforce and inclusive culture improves the quality of decision-making and drives innovation, making us a better bank for our customers.
“I am particularly proud that women continue to lead three out of four of our divisions with customer revenue and profit accountability – Maile Carnegie in Australia Retail, Clare Morgan in Australia Commercial, and Antonia Watson as CEO of ANZ New Zealand. Women also hold key Senior Executive ‘line’ roles and most of our Executive Committee member’s leadership teams are gender-balanced.
“The Census results are a reminder to all organisations that we need to accelerate progress towards achieving gender equity and Australia’s economic potential.
“Data alone won’t solve the problem, but helps us know where to look and seek solutions including by building the pipeline of future female leaders, creating accessible pathways, and eliminating systemic barriers.”
ENDS
CEW Media Contact:
Jesse McCarthy-Price
jesse@cew.org.au
0429 160 550
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