As International Women’s Day approaches, the financial sector has progressed in gender equality scoring according to the sixth annual report from Equileap, a gender equity researcher.
The sector increased its score by 6% in one year and rose from being the fourth sector out of 11 in both 2021 and 2022, to second in 2023.
The report covers over 23 countries, 3,787 companies and over 102 million employees.
It found finance performed especially well on transparency and disclosures and increased its average score from 35% in 2021, and 38% in 2022, to 44% in 2023.
A third, 32%, of companies in the sector, publish gender-disaggregated pay data compared to the global average of 22%. However, no financial company has yet closed its gender pay gap yet (i.e. published a mean, unadjusted gender pay gap +/-3% or less).
Diana van Maasdijk, CEO of Equileap, said in the report: “To see such clear moves at a global level and across such a large dataset is unusual. So I believe it is safe to conclude that something is happening.”
The financial sector outperforms global averages for female representation in all categories. Equileap said efforts to close the gender gap in leadership roles across the financial sector are being accelerated by a “multiplier effect” as for every woman joining the C-suite, up to five join senior leadership. However, Deloitte estimates that women will still only make up 28% of senior positions by 2030.
Banks have the highest women’s representation but while over half of the workforce is female, they represent under a quarter, 23%, of executive teams.
The CEO role remains out of reach for many women, even once they have reached executive teams. There are less than half the number of female CEOs, 35, as there are female CFOs, 79, in the financial sector.
“The lack of gender parity in leadership is a key cause for the persistent gender pay gap in the sector, as was found recently in a UK study,” added Equileap. “There is a pattern of financial firms with initiatives such as childcare benefits and flexible roles having lower pay gaps, emphasising the effectiveness of changes in working culture to encourage gender equality.”
©Markets Media Europe 2023
