Christian & Timbers Study Reveals DEI Not Working for Women Executives

Only 4.2% of women occupy top leadership positions in private equity-backed companies, 10.4% in the Fortune 500 and 11.8% in venture capital-backed companies

SAN FRANCISCO--(BUSINESS WIRE)--A comprehensive study conducted by Christian and Timbers unveils gaps and opportunities in gender representation at the executive level within private equity- (PE) and venture capital- (VC) backed companies. The analysis reveals disparities across key roles, including CEO, CFO, and CMO positions, highlighting the untapped potential for growth in female leadership across these sectors.

The findings stem from a robust analysis of comprehensive data from 205 PE and VC-funded companies and 500+ Public companies, focusing on gender representation across various funding stages and correlating with company growth metrics. The report draws from market surveys, direct submissions to Christian & Timbers, and public filings, offering valuable insights into diversity dynamics at PE- and VC-backed companies.

Top-line Findings CEO Representation:

• PE-backed companies: Only 4.2% of CEOs are women, compared to 6.1% in publicly traded companies, reflecting a gender gap at the top leadership level.
• VC-backed companies: Women represent 11.8% of CEOs, suggesting venture capital investors have made the biggest gains in female leadership but are still far from gender parity.
• Fortune 500 companies: Women represent 10.4% of CEOs, indicating that larger public companies have made some progress in addressing gender diversity, though there is still room for improvement.

Jeff Christian, CEO of Christian & Timbers noted, "The data reveals not just a disparity but also an unrealized growth opportunity—one rooted in what McKinsey calls a persistent ‘broken rung’ that prevents many women from advancing to senior leadership roles. Addressing this foundational issue could be crucial if we’re to see real progress in gender diversity across all sectors."

Others argue DEI isn’t working. John Hope Bryant, CEO of Bryant Group Ventures states in the Times article, “DEI initiatives are no longer sufficient and have become something to attack.” Bryant continues by saying, “Critics argue that DEI efforts are often performative, costly, and ideologically driven, rather than rooted in practical benefits.”

This has led to what many are calling DEI fatigue. President Trump’s executive order dismantling the federal government's diversity and inclusion programs demonstrates DEI fatigue at the highest level. “DEI fatigue and changes in federal government policy should not slow promotions at the top of PE and VC-backed companies, which we have seen are highly merit-based and follow pragmatic decisions by leadership and their investors,” continues Jeff.

Robert Smith, CEO, Vista Equity Partners, one of the largest PE firms, was quoted in a CNBC article from Davos stating, “I look at the data, when we have diverse teams, our teams are more productive,” suggesting we will see more women in top jobs at PE backed companies.

According to the 2023 Women in the Workplace report by McKinsey & Company and LeanIn.Org, the "broken rung"—the gap at the first step up to manager—remains a critical barrier to advancing women in the workforce. For every 100 men promoted to manager, only 87 women are promoted, which limits the pipeline of female leaders.

Other findings:

The study further highlights the current state of gender diversity in other key leadership roles within private equity (PE) and venture capital (VC) backed companies. While women hold a notable percentage of roles like Chief People Officer and Chief Marketing Officer, particularly in human resources, gaps remain in other key positions.

• For instance, 8.4% of CTO roles in PE-backed companies are held by women, with a slightly higher figure of 10.1% in VC-backed companies, pointing to a gender gap in technical leadership.
• Similarly, roles such as Chief Revenue Officer, Chief Product Officer, and Chief Operating Officer reflect an opportunity for increased gender diversity in these disciplines.

"There is data that indicates an opportunity cost of not prioritizing diversity, equity, and inclusion (DEI)," Christian emphasized. "For instance, a McKinsey study from December 2023 found that companies in the top quartile for gender diversity are 39% more likely to achieve financial outperformance compared to those in the bottom quartile."

The McKinsey report Christian references is Diversity matters even more: The case for holistic impact, published December 2023.

Media are invited to reach out to us here to access the full report.

About Christian & Timbers:

For over four decades, Christian & Timbers has been a leading technology-focused executive search firm, shaping leadership dynamics within the tech industry and completing over 500 CEO assignments, including the first woman CEO of a Fortune 10 company.