The Treasury Committee published its Report on Women in Finance on 13 June 2018.
Its recommendations included:
- Assess bonuses against clear criteria to abolish ‘alpha-male’ culture
- Remove stigma of flexible working by senior men leading by example
- Encourage firms to publish strategies for closing gender pay gaps
- Partners and subsidiaries should not be exempt from gender pay gap reporting
The Committee has today published the Government’s response to the Report.
Commenting on the response, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, said:
"The Committee would like to thank the Economic Secretary and Minister for Women for providing evidence to the Committee’s inquiry, and for taking the time to respond to the Report. I would also like to welcome their gratitude for the Committee’s commitment to the Women in Finance Charter.
The gender pay gap in financial services is partly due to—as the Economic Secretary said—the woefully low number of women in leadership positions. The Committee’s Report said that to overcome this, firms should change their culture, specifically around bonuses, to support the progression of women.
Company subsidiaries with fewer than 250 employees, and partners who are remunerated differently to employees, are exempt from gender pay gay reporting. These exemptions could impact the trends emerging from the reporting data and the conclusions drawn. Whilst it is pleasing to see some employers already taking the initiative, it’s disappointing that the Government will not consider amending the gender pay gap reporting regulations for five years.
The Treasury Committee will continue to challenge financial services firms on their gender pay gap, and encourage them to consider the representation of other forms of diversity within their organisations."
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