Women in Leadership: Why the Glass Cliff Phenomenon Is Still Rising
You might have noticed a specific trend in the corporate world where companies in deep financial trouble suddenly appoint a female CEO. This is not a coincidence. The practice of placing female executives in charge during severe organizational crises is known as the glass cliff, and it remains a growing issue in modern business.
What Is the Glass Cliff?
The term was coined in 2004 by Michelle Ryan and Alex Haslam, two researchers from the University of Exeter. They conducted a study analyzing the performance of FTSE 100 companies before and after the appointment of new board members. Their research revealed a distinct pattern. Companies were significantly more likely to appoint women to leadership positions after a period of consistently poor financial performance.
Most professionals are familiar with the glass ceiling, the invisible barrier that prevents women and minorities from advancing to the highest levels of corporate leadership. The glass cliff is a related but entirely different problem. Instead of being denied the top job, women are handed the top job exactly when the company is teetering on the edge of disaster. When the risk of failure is at its absolute highest, female executives are disproportionately chosen to take the wheel.
Why Companies Choose Female Leaders in a Crisis
You might wonder why a board of directors would specifically seek out a female leader when their business is failing. Researchers and business analysts point to a few core reasons driving this phenomenon.
The Signal of Radical Change
When a traditional, male-dominated leadership team leads a company into a major crisis, the board of directors often wants to signal a complete break from the past. Hiring a female CEO provides a highly visible, immediate message to shareholders and the public that the company is moving in a new direction.
The “Think Crisis, Think Female” Bias
Psychological studies suggest that corporate boards associate certain traits with crisis management. While traditional leadership stereotypes often favor men in times of stability, boards tend to look for leaders who are collaborative, communicative, and empathetic during a crisis. Because these traits are stereotypically associated with women, decision-makers subconsciously pivot toward female candidates when they need someone to soothe angry shareholders or repair a damaged public image.
The Scapegoat Dynamic
There is a darker side to the glass cliff. When a company is almost guaranteed to fail, the leadership role becomes a poisoned chalice. If the female executive manages to turn the struggling company around, the board benefits. If the company collapses, the board can blame the new CEO for the failure, protecting the reputations of the previous leaders who created the mess.
Real-World Examples of the Glass Cliff
To understand how common this practice is, you only need to look at recent corporate history. Many of the most famous female executives of the last two decades were hired under glass cliff conditions.
- Linda Yaccarino at X (formerly Twitter): In May 2023, Elon Musk appointed Linda Yaccarino as the CEO of X. She stepped into the role after the platform had lost more than half of its advertising revenue, faced massive public backlash, and laid off a huge portion of its staff. Yaccarino was handed an incredibly fragile situation with intense public scrutiny.
- Marissa Mayer at Yahoo: In 2012, Yahoo was bleeding market share to tech giants like Google and Facebook. The company was in a state of chaos, having cycled through five different CEOs in just five years. The board tapped Marissa Mayer to save the sinking ship. Despite her efforts, the foundational issues at Yahoo were too deep, and she eventually oversaw the sale of the core business to Verizon in 2017.
- Carol Bartz at Yahoo: Before Mayer, Carol Bartz was also hired by Yahoo in 2009 during a massive financial downturn. She was brought in to make difficult cuts and restructure the business, only to be abruptly fired by the board two and a half years later.
- Jill Abramson at The New York Times: In 2011, The New York Times was facing a severe decline in print advertising revenue and a highly stressful pivot to digital media. Jill Abramson was appointed as the first female executive editor to guide the paper through this crisis. She was fired three years later over management disputes.
The Hidden Costs for Female Executives
Accepting a glass cliff position carries severe professional risks. Because these women are handed struggling companies, their chances of long-term success are statistically much lower than leaders who inherit healthy organizations.
A comprehensive study by Strategy&, the consulting arm of PwC, found that female CEOs are forced out of office 27% of the time, compared to just 20% for male CEOs. Their average tenure is often significantly shorter.
Furthermore, failure on the glass cliff can permanently damage a career. When a male CEO fails, he is often given a second chance at another company. Female executives who fail to pull off impossible turnarounds frequently struggle to secure another CEO role, as the failure is unfairly attributed to their leadership abilities rather than the terrible circumstances they inherited.
How to Identify and Navigate a Glass Cliff Offer
Female executives do not have to reject every turnaround opportunity, but they do need to protect themselves. If an executive suspects she is being offered a glass cliff role, she should take specific steps before signing a contract.
- Demand total financial transparency: Executives must ask for access to all financial records, pending lawsuits, and internal audits before accepting the job.
- Negotiate a strong severance package: Because the risk of failure is high, executives need a guaranteed exit package to protect their financial future if the board decides to change direction again.
- Define success clearly: A turnaround takes time. The new CEO and the board must publicly agree on realistic milestones for the first 12 to 24 months.
By understanding the mechanics of the glass cliff, female executives can negotiate better terms, set realistic expectations, and ensure they are stepping into an opportunity rather than a trap.
Frequently Asked Questions
What is the difference between the glass ceiling and the glass cliff? The glass ceiling refers to the invisible barriers that prevent women from being promoted to top leadership roles. The glass cliff refers to the practice of promoting women to those top roles only when the company is failing and the risk of career damage is high.
Who coined the term glass cliff? The term was introduced by researchers Michelle Ryan and Alex Haslam at the University of Exeter in a 2004 study on corporate leadership and company performance.
Can a glass cliff be a good opportunity? Yes. If an executive is fully aware of the risks, negotiates a highly favorable contract, and successfully turns the company around, a glass cliff role can cement her reputation as a top-tier business leader. Mary Barra at General Motors is a great example of a leader who took over during a massive crisis (the ignition switch recall) and successfully guided the company to long-term stability.