Recommendations & Conclusions
8 items
5
Conclusion
Sixth Report - Sexism in the City
Accepted
We heard that linking senior executive pay and bonuses to performance on diversity and inclusion can be an effective way to incentivise change, though this practice is not currently widespread. One of the Women in Finance Charter principles is for firms to have an ‘intent’ to link pay to delivery …
Read more
We heard that linking senior executive pay and bonuses to performance on diversity and inclusion can be an effective way to incentivise change, though this practice is not currently widespread. One of the Women in Finance Charter principles is for firms to have an ‘intent’ to link pay to delivery on gender diversity targets. Eight years on from the launch of the Charter, we think it is now time to sharpen this principle to increase its effect. We therefore recommend making the link to executive pay a firmer commitment under the Charter, on a ‘comply or explain’ basis.
Show less
Government response AI summary
The government agrees that linking executive pay to diversity performance is effective and states that a 'comply or explain' mechanism for this is already central to the Women in Finance Charter, with 84% of signatories currently having such a link and ongoing monitoring.
Read full response →
HM Treasury
11
Recommendation
Sixth Report - Sexism in the City
Accepted
Hybrid working spread accidentally and unplanned as a result of the Covid pandemic and the full benefits and costs of new hybrid and remote working arrangements continue to be identified. Those arrangements have, however, provided substantial Sexism in the City 41 new opportunities for more flexible working patterns from which …
Read more
Hybrid working spread accidentally and unplanned as a result of the Covid pandemic and the full benefits and costs of new hybrid and remote working arrangements continue to be identified. Those arrangements have, however, provided substantial Sexism in the City 41 new opportunities for more flexible working patterns from which women, particularly those with children or other caring responsibilities, have benefited. There is a risk that those benefits will be lost if financial sector firms push back towards “presenteeist” office working cultures without considering what has been gained, especially for women.
Show less
Government response AI summary
The government agrees that flexible working can improve diversity, noting the recently enacted Flexible Working Act 2023 and Carers’ Leave Act 2023 already assist with flexible working and caring responsibilities. It states its approach is to focus on outcomes for firms rather than specifying interventions, …
Read full response →
HM Treasury
12
Conclusion
Sixth Report - Sexism in the City
Accepted
There are also risks that women lose out on promotion or pay progression possibilities if the change in practice towards hybrid and remote working is not accompanied with a change in the culture of firms and the mindset of managers towards ensuring equal opportunity and treatment between those who work …
Read more
There are also risks that women lose out on promotion or pay progression possibilities if the change in practice towards hybrid and remote working is not accompanied with a change in the culture of firms and the mindset of managers towards ensuring equal opportunity and treatment between those who work more of their hours at home and those who work more in the office.
Show less
Government response AI summary
The government agreed with the risks identified and highlighted the Flexible Working Act 2023 and Carers’ Leave Act 2023 as already addressing related issues. It also noted its consultation proposals encourage firms to identify and address barriers, potentially including flexible working initiatives.
Read full response →
HM Treasury
15
Recommendation
Sixth Report - Sexism in the City
Accepted
Welcome progress has been made in recognising the effect of the menopause and in identifying ways of assisting those affected to overcome the challenges it presents without having to leave their jobs. That progress, as in other areas of this Report, needs to be taken further.
Read more
Welcome progress has been made in recognising the effect of the menopause and in identifying ways of assisting those affected to overcome the challenges it presents without having to leave their jobs. That progress, as in other areas of this Report, needs to be taken further.
Show less
Government response AI summary
The government described ongoing actions to support women affected by menopause, including the appointment of a Menopause Employment Champion and her Four Point Plan, new DWP guidance, and identifying menopause as a priority in the Women's Health Strategy.
Read full response →
HM Treasury
16
Recommendation
Sixth Report - Sexism in the City
Accepted
We recommend that Government continue to encourage firms to recognise the impact of menopause and to establish policies and support for those who are affected to ensure that their experience and talents are not prematurely lost from the industry. (Paragraph 82) Pay
Read more
We recommend that Government continue to encourage firms to recognise the impact of menopause and to establish policies and support for those who are affected to ensure that their experience and talents are not prematurely lost from the industry. (Paragraph 82) Pay
Show less
Government response AI summary
The government has accepted this recommendation, highlighting actions such as appointing a Menopause Employment Champion, promoting her Four Point Plan, launching new guidance on the Help to Grow portal, and prioritizing menopause in the Women’s Health Strategy to encourage employer support.
Read full response →
HM Treasury
18
Recommendation
Sixth Report - Sexism in the City
Accepted
Given that gender bonus gaps are typically even larger than gender pay gaps, we are concerned that the removal of the bankers’ bonus cap could increase the difference between the overall take-home pay of men and women in financial services, especially given that pay gap reporting appears to provide little …
Read more
Given that gender bonus gaps are typically even larger than gender pay gaps, we are concerned that the removal of the bankers’ bonus cap could increase the difference between the overall take-home pay of men and women in financial services, especially given that pay gap reporting appears to provide little incentive against this. We recommend that the PRA and FCA monitor this closely, and formally review the impact of the bonus cap removal on gender pay inequality in two years’ time.
Show less
Government response AI summary
The PRA has committed to monitoring the effects of the bonus cap removal on remuneration structures, and the FCA will work with the PRA to review its impact on gender pay and inequality at the earliest opportunity once sufficient evidence is available.
Read full response →
HM Treasury
34
Conclusion
Sixth Report - Sexism in the City
Accepted
The widespread misuse of non-disclosure agreements (NDAs) in sexual harassment cases is shocking. NDAs have the effect of silencing the victim of harassment when they are forced out of an organisation, while protecting the perpetrator and leaving them free to continue their career.
Read more
The widespread misuse of non-disclosure agreements (NDAs) in sexual harassment cases is shocking. NDAs have the effect of silencing the victim of harassment when they are forced out of an organisation, while protecting the perpetrator and leaving them free to continue their career.
Show less
Government response AI summary
The government shares concerns about NDA misuse and is taking action, including the Higher Education (Freedom of Speech) Act 2023 which prevents NDAs in certain misconduct cases, and has committed to legislation clarifying NDAs cannot prevent reporting a crime.
Read full response →
HM Treasury
36
Recommendation
Sixth Report - Sexism in the City
Accepted
In the meantime, we recommend that the FCA collect data on the use of NDAs by regulated firms in cases of non-financial misconduct. This will provide a more detailed, quantitative picture of the extent of their use in financial services in harassment cases, which could provide valuable evidence to support …
Read more
In the meantime, we recommend that the FCA collect data on the use of NDAs by regulated firms in cases of non-financial misconduct. This will provide a more detailed, quantitative picture of the extent of their use in financial services in harassment cases, which could provide valuable evidence to support further action. (Paragraph 168) Sexism in the City 45
Show less
Government response AI summary
The government states that the FCA recently issued a non-financial misconduct survey to wholesale firms to collect data on the use of confidentiality agreements in relation to various misconduct types, and they are currently assessing the responses.
Read full response →
HM Treasury