Despite this disparity, there is a silver lining, as there has been an uptick in gender diversity within leadership positions. The board diversity at the leading UK banks, on average, was close to 40 percent in early 2024, with Nationwide Building Society having more women than men on its board of directors.
Leadership diversity
Gender diversity on UK financial services boards has increased notably in recent years, reaching 37 percent in 2023. The largest banks in the country performed slightly better than this, with the 10 largest banks averaging a board diversity of 39.7 percent in January 2024. This increasing trend extends to other senior leadership positions as well. At HSBC, for instance, there were over six percent more women in senior leadership positions in 2023 than in 2018. Similarly, Lloyds Banking Group witnessed a significant rise in female senior managers, board members, and executive committee members in 2023 compared to the previous years.Diversity in the total workforce
Conversely, an opposing trend is observed in the total workforce of the largest UK banks, where the share of women has decreased across all five largest banks, namely HSBC, Barclays, Lloyds, NatWest, and Standard Chartered. However, despite this decline, gender diversity in the overall workforce remains significantly higher than in senior leadership positions. This disparity underscores the importance of continued efforts to promote gender equality and inclusion at all levels within the banking industry.Unveiling gender pay gap disparities
Despite the slow improvement in gender diversity, an alarming aspect of gender inequality in the banking sector remains: gender pay gaps. Since 2017, large UK employees must provide annual gender pay gap data, leading to more transparency in terms of gender inequality and some concerning revelations. With 27.9 percent, the financial sector has the largest median gender pay gap in the UK, and some of the largest banks’ gender pay gaps are even higher. Moreover, the bonus pay gap within these banks is even more pronounced.Recent developments in gender diversity within the largest UK banks reflect slow but steady progress. Despite efforts to promote inclusivity, gender pay gaps persist as a concerning issue. The recent removal of the bonus cap adds complexity, raising concerns about exacerbating disparities. Moving forward, commitment to transparency and proactive measures is essential for fostering equity in banking.
