For the first time in a generation, women are sliding backward in the climb to the top of corporate America. New research from Grant Thornton finds women now hold 31% of senior leadership positions at U.S. companies, down from 34% a year earlier and 35% in 2024. After two decades of gradual progress, the upward trend has stalled — and in some cases, reversed.
The decline is most visible in executive suites, but the problem begins much earlier. McKinsey & Co. found in its annual Women in the Workplace report that women occupy only 29% of C-suite positions, unchanged from the previous year. Women remain underrepresented at every level of corporate leadership for the eleventh consecutive year.
The numbers tell the story. Women account for roughly 49% of entry-level employees, yet their representation declines with every promotion level. By the time companies reach senior executive ranks, fewer than one-third of leadership positions are held by women.
Researchers point to what they call the “broken rung” — the first promotion from an entry-level position into management. That initial step appears to be where many women begin falling behind. According to McKinsey, for every 100 men promoted into management, only about 80 to 90 women receive the same opportunity. The disparity is even larger for women of color. Some studies found that only about 60 Black women were promoted for every 100 men advancing into management roles.
Because leadership pipelines are built over years, missing that first promotion has long-term consequences. Fewer women in management today means fewer candidates available for director, vice president, and executive positions tomorrow.
What makes the trend notable is that it is not being driven by a lack of ambition. Surveys consistently show women remain highly committed to their careers. About 65% of women say their work is an important part of their identity, slightly higher than the percentage of men who say the same.
Researchers increasingly argue that the issue is not an ambition gap but a support gap.
One major change has been the disappearance of leadership-development programs that once helped identify and prepare future executives. Jane Edison Stevenson, Global Vice Chair at Korn Ferry, says many companies have scaled back or eliminated formal management-training tracks that previously helped promising employees gain the operational experience required for senior leadership positions.
Those programs were often expensive and required years to produce results. As employee turnover increased and workers became more likely to change employers, many companies concluded the investment was no longer worthwhile.
The loss of sponsorship may be equally important. Sponsorship differs from mentorship because sponsors actively advocate for promotions and career opportunities. Research shows sponsorship is among the strongest predictors of advancement.
Yet only about 31% of entry-level women report having a sponsor, compared with 45% of men. Without influential advocates pushing for advancement, women may be less likely to receive the assignments and visibility needed for promotion.
Some experts also point to a growing sense of complacency. As women became more visible in leadership roles over the past decade, companies may have assumed progress would continue automatically.
Edison Stevenson warns that advancement does not happen on its own. If organizations are not deliberate about developing leadership pipelines, gains can quickly erode.
The changing political environment may also be playing a role. Several corporations have reduced, renamed, or scaled back diversity, equity, and inclusion (DEI) initiatives amid increased scrutiny and legal challenges. Heather Spilsbury, CEO of 50/50 Women on Boards, says that trend likely contributed to some of the recent decline.
Still, researchers caution against attributing the entire slowdown to DEI debates. Women’s representation in executive roles began slipping in 2023, before many of the latest corporate policy changes occurred. Analysts have struggled to identify a single explanation for the reversal.
For businesses, the issue extends beyond workplace equity. Grant Thornton found companies with more balanced leadership teams were more likely to report stronger revenue growth and faster workforce expansion. Investors, employees, and job candidates increasingly examine leadership diversity when evaluating organizations.
There are also concerns about burnout. McKinsey found that approximately six in ten senior women report experiencing frequent burnout, the highest level recorded in the study’s history. Persistent workplace pressures combined with limited advancement opportunities may be contributing to retention challenges.
There are still signs of progress. The Fortune 500 currently includes 52 women CEOs, and that figure is expected to rise to 54 this year, approaching the record 55 women chief executives reached in mid-2025.
But researchers continue to return to the same conclusion: the future of women in corporate leadership may depend less on the executive suite and more on that first promotion into management. Unless companies repair the broken rung and rebuild sponsorship and development pathways, the gains of the past decade could continue slipping away one step at a time.
JBizNews Desk
Workplace & Leadership Bureau
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