Investment banks face fury over gender pay gap

04/03/2018

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New disclosure rules may force some investment banks to reveal that they pay men twice as much as women, according to a campaigner for equality in business.

Fiona Hathorn, a former investment director for Old Mutual who is now managing director of Women On Boards UK, said many big banks are wrestling with how to present their gender pay gap data.

 

“We know the average City [pay] gap is roughly 60%,” she said. “That includes ordinary banks. So you are going to see [a figure] way higher than 100% for some investment banks.”

Under new legislation, organisations with more than 250 employees have to disclose the gap between the average earnings and bonuses of male and female staff before a deadline of April 4.

Most of the big investment banks — including Goldman Sachs, Morgan Stanley, UBS, Credit Suisse and Bank of America Merrill Lynch — are yet to publish their figures.

However, Barclays revealed last month that female staff’s hourly rate of pay is 48% lower than male staff at the unit that includes its investment banking arm. Women’s bonus pay was 78.7% lower than men’s. The bank did not release a figure for investment banking alone.

City sources say many other investment banks are carrying out “internal PR exercises” to convince women they are paid fairly.

Fund management also has a gulf between male and female remuneration. Hermes will this week report a pay gap of 30.2% and a bonus gap of 63.1%.

Only 1,486 organisations have so far published their figures; it is estimated that 9,000 are required to do so.

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