Gender pay gap: the first step is accepting you have a problem
GlobalCapital, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
People and MarketsCommentGC View

Gender pay gap: the first step is accepting you have a problem

GlobalCapital was taken aback by the data that salary benchmarking site Emolument provided us last week, showing that women having climbed to vice president level at big investment banks are in many cases earning tens of thousands of pounds less than their male counterparts. But we were even more astonished by the responses we received when asked for comment from the banks about how they plan to eliminate this problem.

One bank representative oscillated between challenging the data Emolument provided — which, in fairness to him, may not be perfect — and pointing out that the gender pay gap is a wider issue than just investment banking. 

Indeed it is, but that is no excuse for investment banks' behaviour — an industry that prides itself on housing some of the brightest, well qualified and most confident women and men. If you can’t make this work, who can?  

Several other banks approached refused to comment, as if ignoring it would make it go away.

Only one took the step of assuring us that something was being done. But the spokesman wouldn’t tell us what.

Banking has already taken, and is still taking, great strides in recruiting women and promoting them alongside men of equal talent, and for that it should be applauded. 

But it seems self-evident that for the gender pay gap to be closed in banking, the first step is accepting that there is a problem and putting some system in place to counter it. When that is done in a satisfactory manner, we assume the banks will be more chatty.

In the meantime, as suggested by several recent campaigns, women might do well to cast aside their concerns about talking about money and ask men in equivalent jobs and of equivalent experience how much they earn. Nothing is stopping them arming themselves with that knowledge and then doing battle themselves with management if necessary.

David Cameron, the UK prime minister, seems to understand the need for transparency on this issue. He is expected to bring forward rules to make firms with more than 250 workers reveal whether they pay men more than women. That change is expected in the first half of next year.

In the meantime, the next round’s on you gentlemen. And the one after that.

Gift this article