MPs have told City bosses to shake-up how they award bonuses as part of a package of measures designed to address an ‘alpha male culture’ which is blocking attempts to address the gender pay.
In a report the Treasury Select Committee also said that financial sector businesses needed to do much more to address intangible, behavioural factors which were capping women’s advancement.
Gender pay figures have shown that across the financial service sector, the average female employee is paid 35% less than a male colleague, and receives a bonus 52% smaller.
Those figures primarily show the massive gender disparity at the top of the sector, which continues to lag well behind parallel professional career paths such as the law, accountancy and medicine.
Committee chair Nicky Morgan 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.’