Link bonuses to appointment of senior women, says review
Bonuses of City executives should be linked to targets for the number of senior women appointed at a firm, says a government commissioned review. This review is being led by Jayne-Anne Gadhia who is the Chief Executive of Virgin Money.
The proposal is to make the remuneration packages of a firm’s executive team dependent on gender balance and is one of the preliminary recommendations. The review also says that financial services firms should report publically on their gender diversity, and should appoint an executive responsible for gender, diversity, and inclusion.
These preliminary recommendations will be presented at a summit hosted by the Economic Secretary to the Treasury, Harriett Baldwin, at No 11 Downing Street and will convene senior representatives from across the financial services industry to discuss what more can be done to expand the representation of senior women in the sector.
They will then be discussed by a panel including Michelle Pinggera, partner and member of the European Management Committee at Goldman Sachs, Francesca McDonagh, Head of Retail Banking & Wealth Management UK at HSBC Bank plc and Dame Amelia Fawcett, Chairman of the Hedge Fund Standards Board. The panel will be chaired by Stephanie Flanders, Chief Marketing Strategist at J.P. Morgan Asset Management.
Economic Secretary to the Treasury Harriett Baldwin said:
“I know that there are a lot of brilliant, talented women out there whose skills would be an enormous asset to any firm. We should be making the most of that talent as all organisations work better when they benefit from a range of perspectives."
"Financial services is at the centre of driving productivity in the UK, but it’s also a sector where the problem of gender diversity is particularly marked – especially in senior management. That is why Jayne-Anne Gadhia’s review is so important, and it is a key strand of the work towards achieving gender parity."
"I welcome the review’s preliminary recommendations, and I look forward to the final report next year.”