Commenting on the Report, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, said:
"The reporting of gender pay gaps at financial services firms confirms that a large gap exists between men and women working in finance, in part due to significantly more men than women in higher earning and more senior positions.
The benefits of gender diversity are highlighted in the report, including better financial performance, reduced groupthink and more open discussions.
The next step must be for firms to set out how they will abolish their gender pay gap and support the progression of women. Firms should focus on changing the culture in financial services firms, which remains a deterrent for women, especially the bonus culture.
In the current bonus culture – whereby individuals argue how well they have performed – it's perceived that men argue more forcefully for bonuses, which can disadvantage women. This should be replaced by a system where performance bonuses are assessed against objective and formulaic criteria.
Firms should also encourage flexible working, promote returner schemes for women on maternity leave, and re-examine their recruitment and promotion policies to eliminate unconscious bias – people recruiting in the own image – to avoid both group think and potential applicants being deterred.
Industry, Government and the regulators all have a role to play in pipeline management. Encouraging girls to study subjects at school could increase the number of young women entering the financial services sector, and careers organisations can ensure that young women are made aware of the various career paths in the financial services sector."