Bank Bonuses Should Be Tied to Gender Balance, U.K. Report Says

  • Making pay link to women's appointments would drive equality
  • Proposals included in U.K. government-commissioned report

Executives of financial-services companies in the U.K. should have their bonuses tied to the number of women in senior positions, a government-commissioned review of women in the industry recommended.

The preliminary report by Virgin Money Holdings U.K. Plc Chief Executive Officer Jayne-Anne Gadhia also called on banks and other financial companies to publish their record on gender diversity and appoint an executive with responsibility for inclusion, diversity and gender, the U.K. Treasury in London said in an e-mailed statement on Wednesday.

“It should be a wake-up call to everyone in financial services that fewer women progress to senior levels than in any other industry in the U.K.,” Gadhia said. “My report proposes addressing the issue in a way that the City will recognize. Make it public, measure it and report on it. What gets published gets done.”

Gadhia was scheduled to present her findings at a meeting Wednesday hosted by Harriett Baldwin, the economic secretary to the Treasury, and attended by executives including Michelle Pinggera, a partner at Goldman Sachs Group Inc., and Francesca McDonagh, head of retail banking and wealth management at HSBC Holdings Plc.

“Financial services is at the center of driving productivity in the U.K., but it’s also a sector where the problem of gender diversity is particularly marked -- especially in senior management,” Baldwin said, referring to the report and its recommendations as “a key strand of the work towards achieving gender parity.”

Gadhia will seek reactions to her preliminary recommendations “shortly” before publishing a final report in spring 2016, the Treasury said.

Before it's here, it's on the Bloomberg Terminal.