Boardroom. (CC0). Defense Secretary Pete Hegseth recently blocked the promotion of two women and two Black men on the list of dozens of military officers in line for promotion. It was just one example of the Trump administration’s opposition to diversity in hiring. It has led to companies across America ending their diversity, equity and inclusion policies, as Forbes has reported. State Street, which handles 11.5% of the world’s financial assets, “previously expected boards in major indexes to be 30% female and S&P 500 companies to have at least one racial minority director, but these requirements appear to have been dropped,” the story noted. “Women face less career support and fewer opportunities to advance as companies show declining commitment to women’s progress,” a December 2025 report by McKinsey & Company found. How is this affecting leadership in Wisconsin’s companies? Progress on corporate board diversity “has slowed, in line with similar trends nationally,” noted the latest report by Milwaukee Women Inc. And a new report by Tempo, the largest professional women’s group in Wisconsin, has found that “workplace barriers are limiting women’s advancement — and for 41% of respondents, prompting them to consider leaving Milwaukee for other opportunities.” Jen Dirks, the president and CEO of Tempo, told Urban Milwaukee the Trump administration is clearly a factor in the worsening climate for women at Wisconsin companies. “We are definitely feeling that,” she noted. This retrenchment comes after a quarter century of progress nationally and in Wisconsin. Milwaukee Women Inc. was formed in 2003 at the urging of the late Betty Quadracci, who was publisher of Milwaukee Magazine, which had done a story on the dearth of women leaders in town. In 2004, the group released the first of its annual reports on the number of women on corporate boards in Wisconsin. Between 2003 and 2011, it found, the percent of women directors in Wisconsin’s top 50 companies increased from 9% to 14.4% — a net increase of 22 seats. That has risen tremendously since then, to 30.7% in 2025, with 141 of 459 board members at the top 50 companies held by women. Wisconsin’s privately held companies have made progress, too, but more slowly: 23.3% of its board seats were held by women in 2025. The group’s research has helped push companies to diversify, and while Wisconsin has consistently trailed the nation (as measured by the S&P 500) in the percent of women board members at publicly held companies, the difference was the smallest in 2025 that it’s ever been: 30.7% of board seats held by women in Wisconsin versus 34% nationally. Milwaukee W0men Inc. has coined a phrase — the “Power of Three” — to dramatize the benefits of a company having at least three women board members. “Catalyst reports ‘at least three women directors’ as the critical mass needed to maximize diversity benefits,’ the report notes. “The number of Wisconsin Power of 3 companies has grown from three in 2003 to 32 in 2025.” As for the benefits, “Women tend to bring diverse perspectives and styles on how to go about solving problems,” a 2018 McKinsey study found. “Firms with more gender diversity at the top are 21% more likely to have above-average profitability.” A study by Peterson Institute for International Economics reviewed the financial records of about 62,000 publicly listed firms in 58 economies over 1997–2017, which together accounted for more than 92% of global GDP, and found that companies with female executives and female board members were more profitable. Tempo was founded in 1975 and has done reports over the years on such issues as pay equity and sexual harassment in the workplace. The latest study was inspired by the recent McKinsey report, Dirks notes: “It found something new to us: an ‘ambition gap,’ with women not as interested in rising to the executive level.” Tempo surveyed 212 women employed with Milwaukee companies, from senior executives to emerging company leaders, on the current climate for women workers. It found that 25% of the emerging leaders are actively seeking promotion but encountering barriers, including: – Only 34% of those surveyed have sponsors at the executive level, which makes it more difficult for them to gain “board access, peer networks and enterprise influence,” the report notes. “This is a system-level failure.” – 94% of those surveyed said there is a need for more flexible work arrangements, and without it they are less likely to pursue advancement. About three-quarters of respondents say burnout is an issue. “Milwaukee employers must treat burnout prevention not as a wellness perk but as a retention strategy.” – About 63% say gender has limited their opportunities. Women with the most senior positions are the most likely to report feeling less equitably treated, which “suggests that the higher women rise, the more pronounced the equity disparities become.” – More than one in three emerging women leaders “are actively thinking about leaving their employer right now — specifically because they don’t see a clear path to leadership.” About 45% “have considered leaving Milwaukee to advance their careers… This is a five-alarm retention crisis for Milwaukee employers.” The report is a warning to companies that they may lose talented workers and future leaders. “Employers who fail to provide clear paths, visible sponsorship, and flexible conditions risk losing their best talent before it ever reaches the executive tier.” Dirks points to studies showing companies with women leaders are more profitable, and adds that it’s also about being open to people of color. “A diversity of ethnicity, a diversity of thought, is an asset for companies,” she says. The Milwaukee Women Inc. study quotes Tim Mattke, CEO of MGIC, who offers this view: “Different backgrounds and experiences encourage constructive dialogue, challenge conventional thinking and broaden how we evaluate risks and opportunities.” The group’s studies have found progress on women of color appointed to corporate boards: The percentage grew from 4.5% in 2021 to 6.3% in 2023. But that has declined since then, even as the growth of all women on boards has stalled. That’s clearly the result Trump favors. But it’s bad news not just for women in the corporate workplace, but also for the leadership prospects of Milwaukee companies.
