Succession Planning to Address the Gender Gap in Executive Positions: Insights from Iceland

Abstract

The World Bank Report on Women, Business, and the Law 2024 highlights that the global gender gap in the workplace remains a persistent challenge, with no country yet offering women equal opportunities in the labour market. Closing this gap could potentially boost global GDP by over 20% (The World Bank, 2024). Iceland, often regarded as a global leader in gender equality, has achieved notable progress, including a historic milestone in November 2024 when women secured the majority of government ministerial positions. However, a significant gender disparity persists within Iceland’s corporate leadership. Men currently hold 79% of CEO positions and occupy 75% of corporate board seats, with only four women serving as CEOs of companies listed on Nasdaq Iceland as of January 2025 (Creditinfo, 2024). Icelandic businesswomen and female board members have identified succession planning (SP) as a critical yet underutilized tool for addressing this gap. This qualitative study, based on in-depth interviews with male board members of all 23 listed companies in Iceland, explores their experiences and attitudes toward succession planning as a means to reduce gender disparities in executive positions. The study addresses the research question: What are the experiences and attitudes of male board members of listed companies toward implementing succession planning to close the gender gap in top management positions in Iceland? Findings indicate a general lack of awareness and understanding of succession planning among male board members. However, those with experience in SP acknowledge its potential to facilitate smoother leadership transitions and promote diversity when strategically implemented. A key contribution of this research is its unique focus on male perspectives within Icelandic corporate governance—providing insights into their perceived barriers and opportunities in utilizing succession planning to foster gender balance. The study also highlights the structural and cultural challenges specific to Iceland, particularly the influence of informal recruitment networks, which may unintentionally hinder formalized succession initiatives. Furthermore, the paper situates the persistent gender imbalance in business leadership within the broader context of Iceland’s political advancements in gender equality. While Icelandic politics has made significant strides—exemplified by the recent ministerial milestone—corporate leadership lags behind. This discrepancy may be attributed to factors such as legal frameworks, public accountability, and political quotas, which have driven progress in politics but are largely absent in corporate governance. Additionally, the research considers sectoral variations, as the companies analyzed span industries such as finance, energy, retail, and technology, which may have differing levels of gender representation and approaches to succession planning. These findings contribute to the growing body of literature by emphasizing the importance of strategic commitment and cultural adaptation in the successful implementation of SP as a diversity tool. They also underscore the need for targeted policy interventions and corporate governance reforms to bridge the persistent gender gap in business leadership.