AMBITIOUS young women hoping to run a major business some day are often advised to take a particular career path: Get an undergraduate degree from the most prestigious college you can, an MBA from a selective business school, then land a job at a top consulting firm or investment bank. From there, move between companies as you hopscotch your way into bigger roles and more responsibility.
We decided to test that advice by looking at the career paths of the 24 women who head Fortune 500 companies. What we found surprised us.
Most women running Fortune 500 companies did not hop on a “competitive business track.” Only three had a job at a consulting firm or bank. Over 20 percent took jobs right out of school at the companies they now run. Over 70 percent spent more than 10 years at the company they now run. The median stint for these women CEOs is 23 years spent at a single company before becoming the CEO. We pulled a random sample of their male Fortune 500 CEO counterparts—and found that the men’s median stint is 15 years. So for women the long climb is more than 50 percent longer than for their male peers. Moreover, 71 percent of the female CEOs were promoted as long-term insiders versus only 48 percent of the men.
Why the differences? Optimistic interpretations could include supportive organizations, strong mentors or something intrinsic to the women themselves. On the flip side, those differences could also result from structures that treat women less favorably, biases that delay promotions and penalties for taking maternity leave.
Company culture matters. A recent Bain survey shows that while women in entry-level jobs have ambition and confidence that match or exceed that of men, at mid-career, men’s ambitions and confidence stay the same, while women’s drop dramatically. So a company that maintains the drive of its women is a better bet for a long stint.
Let’s go back to that conventional career advice. Only two women (and only 4 percent of the men) running Fortune 500 companies have an undergraduate degree from an Ivy League institution.
About three-quarters of the men and women have no reference in their resumés about spending time in consulting and banking. Only 25 percent of the women and 16 percent of the men hold MBAs from prestigious programs. The playbook for advising young women with their sights set on leading large companies may need to be revised. But there’s something inspiring for young women that regardless of background, you can commit to a company, work hard, prove yourself in multiple roles and ascend to top leadership.
These female CEOs didn’t have to go to the best schools or get the most prestigious jobs. But they did have to find a good place to climb.
Sarah Dillard is the CEO of SPD Advisory. Vanessa Lipschitz manages a grant-making portfolio at the Jacobson Family Foundation.
Sarah Dillard & Vanessa Lipschitz