Recruiting Leaders: Headhunters' Role in Addressing Gender Bias and Board Expectations

Abstract

Although women remain significantly underrepresented in business leadership roles, limited attention has been given to how headhunters influence the selection of candidates for these positions. This study examines gender biases in the CEO recruitment process in Iceland, focusing on the role of headhunters and their interactions with corporate boards. Semi-structured interviews were conducted with eight headhunters and 44 board members of all listed companies in Iceland. The findings revealed gender differences in perceptions of headhunters' methods. Female board members were more critical of the narrow pool of candidates and more likely to question headhunters' practices. In contrast, male board members exhibited greater trust in headhunters, relying heavily on their expertise. While some headhunters demonstrate a clear agenda to address gender disparities, expending considerable effort to find qualified women for their candidate lists, others focus primarily on meeting the boards’ requests for candidates with extensive CEO experience, often favoring traditional, male-dominated profiles. Headhunters identify the need to address biases and the boards’ constructions of merit. They experience a dilemma in their roles where they either align their goals with the broader objectives of promoting diversity or focus on delivering candidates that meet the specific, often experience-based, demands of boards. This study contributes to the literature on executive recruitment and gender by highlighting how headhunters’ methods can significantly influence the gender balance of CEO candidate pools and selection. It offers practical recommendations for aligning headhunters’ practices and board objectives to foster greater gender diversity in leadership roles.