"Female CEO Selection: Does the Glass Cliff Exist?" by Xiaoxiao Li et al.
June 23, 2025: Cultural Competence & Global Mindset Article 4
💡 Big Idea
The “glass cliff” phenomenon, which claims women are more likely to be elevated to leadership positions during company crises, does not hold up under rigorous scrutiny of U.S. corporate data.
📖 Summary
This comprehensive study examined over 10,000 CEO appointments from 1998 to 2022, including 526 female CEO appointments, to test whether women are disproportionately selected for leadership roles during precarious times. Using multiple measures of company distress (financial performance, market volatility and probability of default), the researchers found no clear evidence supporting the glass cliff effect. In fact, when significant patterns emerged, they pointed in the opposite direction. Companies with better financial health and lower risk were more likely to appoint female CEOs. The study used advanced statistical methods and examined various subgroups by industry, company size and time periods. The results consistently suggested that earlier supportive findings may have been shaped by smaller datasets or narrow methodological choices.
🎯 Why It Matters
For executives and board members, this research challenges a persistent narrative that may unfairly stigmatize female leadership appointments. Rather than seeing women as leaders brought in to rescue failing companies, the evidence shows that healthier companies are actually more inclined to promote women to the CEO role. This finding should influence more equitable leadership succession planning and help organizations recognize that gender diversity in executive roles is not about crisis response. It is about building and sustaining long-term success.