The recent removal of Karen Lynch as CEO of CVS Health is part of a larger trend where female leaders are replaced, often by men, raising questions about whether these leaders are truly failing—or whether the corporate system is broken. Are these leaders given the opportunity to succeed, or are they set up for failure, either by inheriting crises or by facing the tough standards that hinder their ability to lead effectively?
When looking at the challenges facing female CEOs, it's crucial to consider the glass cliff and the cement ceiling. The glass cliff represents situations where women (and sometimes other diverse leaders) are placed into leadership during times of crisis. When the company is struggling, expectations are high, resources are limited, and the odds of success are slim. These leaders inherit problems that are nearly impossible to solve quickly, and when results aren’t immediate, they’re often blamed.
When female CEOs aren’t leading in crisis, they often find themselves up against the cement ceiling—a permanent, immovable barrier. The cement ceiling represents deeply entrenched expectations about what leadership should look like. Female and conscious leaders often bring different styles, such as a focus on collaboration, inclusivity, and long-term thinking. When these approaches don’t align with the traditional image of a CEO, leaders face scrutiny and resistance.
This is where the cement ceiling becomes very problematic. Unlike the glass cliff, a breakable barrier, the cement ceiling conveys something deeply rooted and resistant to change.
The board’s role is crucial in supporting the vision and goals of a new leader. Boards are often under pressure to deliver immediate returns to investors, and this focus on short-term profitability frequently conflicts with the long-term strategies that many female and conscious CEOs bring. Leadership rooted in sustainability and inclusivity tends to be more long-term in nature, requiring time to see the benefits.
Research supports the idea that companies focusing on long-term strategy outperform their short-term-focused peers. A McKinsey study found that companies prioritizing long-term thinking had 47% higher revenue growth and 36% higher earnings growth over a decade compared to those that focused on short-term gains. Despite this, many boards remain fixated on immediate results, leading to the premature removal of CEOs who could have driven sustainable success given time.
The replacement of female CEOs with male leaders begs the question: Is it time for boards to play the long game? Boards must evolve, embracing leaders who bring new approaches to the table. The focus must shift from quick fixes to long-term sustainability, and boards should be held accountable for supporting strategies that may not deliver immediate returns but are crucial for the company’s future. Companies need leaders who can navigate uncertainty, build inclusive cultures, and think beyond the next quarter.
