Succession plans can lower risk and increase leadership abilities

Abstract

According to the World Bank Report on Women, Business and the Law 2024, the global gender gap in the workplace is even broader than previously thought. No country provides women equal opportunities to men in the workplace. Finding ways to close the gap could increase the global GDP by over 20% (The World Bank, 2024). Iceland still needs to close a considerable gender gap in business leadership and economic participation. Men hold 79% of the CEO positions in private enterprises, and men occupy 75% of the seats on corporate boards (Creditinfo, 2024). Only three women were CEOs of companies listed on Nasdaq Iceland in May of 2024. Research findings show that Icelandic businesswomen and women on the boards of listed companies in Iceland have suggested that one way to close the gender gap is to implement succession planning. The study, therefore, aims to explore the experiences and attitudes of men on the boards of listed companies toward succession planning. The research question posed is: What are the experiences and attitudes of men on the boards of listed companies toward implementing succession planning to close the gender gap in top management teams in Iceland? The main findings indicate that knowledge and understanding of succession planning are lacking among men on boards in Iceland. According to the participants, boards, and managers of companies that have already implemented succession planning are better prepared to meet the challenge of replacing key company leaders. The key contribution of the study is to present the perspectives of men on the boards of all listed companies in the market and how they perceive the possibilities of implementing succession planning to reduce the gender gap in leadership positions.