The English Parliament’s Select Treasury Committee has released a publication, Women in the City [of London]. What follows is the summary:
The recent financial crisis has shone the spotlight upon the City of London and the need for reform to increase financial stability. Whilst most of the discussion has inevitably focussed on issues such as the structure of the banking sector, changes to the regulatory regime for banks and the bail-out of the banking system, there has also been a lively debate about changes to corporate governance to improve governance and oversight within large financial institutions.
Part of the debate on corporate governance in the City of London has been around diversity and the need for challenge. In general women are in the minority at senior levels in financial institutions — especially at the top. The boards of FTSE 100 banks are only 9% female and the proportion of women executive directors is even lower at 1-2%. We believe the lack of diversity on the boards of many, if not most, of our major financial institutions, may have heightened the problems of ‘group-think’ and made effective challenge and scrutiny of executive decisions less effective.
Professor Charles Goodhart even suggested that greater female representation at senior levels would have made the banking crisis less likely. Whilst this may be going too far, a sector which is failing to properly utilise the talents of over half the population clearly has substantial room for improvement. This entails looking more widely at the industry structure, to ensure that able women who wish to progress are not held back, which is why this Report also examines matters such as the long hours culture, the working environment and access to flexible working and family-friendly practices.