MPs hit out ‘alpha male culture’ in the City and call for diversity

AN INFLUENTIAL group of MPs has hit out at the City’s “alphamale culture” and called for clearer bonus criteria and senior men to take up flexible working in order to boost women’s prospects.

A report by the Treasury Committee cited a yawning gender pay gap and bonus negotiations – where men can receive bigger rewards by arguing more forcefully – as evidence of a maledominated culture in the Square Mile. This, the report argues, is the “overwhelming reason” for women failing to take up senior roles.

Committee chairwoman Nicky Morgan, inset, 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 report added that unconscious bias has affected senior recruitment, as “masculine” language and requirements for a degree, or to work certain hours, can deter female candidates. Companies should re-examine promotion policies and only list requirements that are strictly necessary for the job, the committee said. The 51-page report – which includes insight from senior industry figures including Virgin Money chief Jayne-Anne Gadhia and M&G Investments boss Anne Richards – also calls on senior men to tackle the stigma associated with flexible working, which is perceived as a “female” approach and can knock career progression.

Senior men are being urged to “lead by example” by working flexibly themselves, helping displace a culture of presenteeism where staff unnecessarily work long hours in the office.

The committee went on to single out regulators – including the Bank of England and Financial Conduct Authority (FCA) – for a lack of diversity and gender pay gaps, which “show similar trends” to the financial services sector.

The average gender pay gap among banks and building societies is about 35 per cent, while that figure balloons to 52 per cent for bonuses.