MPs launch probe into sexism in the financial services industry

MPs have launched an inquiry into sexism in financial services amid fears the City remains a male-dominated place of work.

The Treasury Committee, which in a report five years ago criticised the ‘alpha male’ culture in finance, will explore if progress has been made since then.

The latest probe comes amid a string of sexual misconduct allegations against hedge fund tycoon Crispin Odey and senior members of the CBI.

Committee chairman and Conservative MP Harriett Baldwin said: ‘We’d like to know whether women feel more supported in the financial services industry than at the time of the previous committee’s inquiry five years ago.

‘We’ll be investigating if enough work has been done to build more supportive workplace cultures, how harassment and misogyny can be addressed, and the role the Government and regulator should play in role-modelling behaviours.’ 

Four years ago, the Government made it mandatory for organisations with over 250 employees to publish an annual pay gap report.

It has since emerged that the financial services industry is the sector with the worst gender pay gap in the country, standing at 26.6 per cent compared to the national average of 12.1 per cent. 

Laura Whitcombe, global campaign manager of the 30% Club, which campaigns for gender diversity on boards, said: ‘Looking across industries, financial services have lagged behind many others for gender equality, though progress is being made, albeit slowly.

‘We’ve gone from 12 per cent women board members in the FTSE 100 in 2010 to just over 40 per cent today. Yet there are currently only ten female chief executives in the FTSE 100.’

She added: ‘Research by McKinsey and Lean In points to a leaky pipeline of female talent throughout organisations, including a broken rung at the first step from entry level to manager, where women are significantly less likely than men to be promoted.’

Whitcome went on: ‘Women were more likely to report feeling burned out than men.

‘We’ve seen that long hours and elements of the traditional masculine work environment, such as a lack of flexibility, remain in some financial services companies and in part explains the relatively wide gender pay gap and low female representation in senior positions.’

Among the most high-profile female chief executives in the FTSE 100 are Amanda Blanc at Aviva and Alison Rose at NatWest, as well as Emma Walmsley at GSK and Liv Garfield at Severn Trent.