by Richard Partington
Originally published: March 21, 2016
U.K. financial firms should link bonuses to their own internal targets to increase female representation in senior roles and publish annual reports on progress, according to a government-commissioned review of gender diversity that stopped short of calling for mandatory goals.
The proposals in the study, led by Virgin Money Holdings U.K. Plc Chief Executive Officer Jayne-Anne Gadhia, will form part of a voluntary charter for firms, the government said in a statement Tuesday. Lenders including Lloyds Banking Group Plc, HSBC Holdings Plc and Royal Bank of Scotland Group Plc, as well as asset manager Columbia Threadneedle Investments, have signed up to the agreement.
The Virgin Money CEO is building on the work of successive government-backed reviews to increase female participation at the top levels of British corporate life, such as a 2011 study by former Standard Chartered Plc Chairman Mervyn Davies that called for at least 25 percent of FTSE 100 board positions to be held by women. The Gadhia review found women made up only 14 percent of executive committees in financial services last year.