A number of major providers have failed to meet their diversity targets, a new Treasury review shows.
Well-known names such as the FCA, the Bank of England, Lloyds Banking Group and Legal & General Group have missed their targets .
They are among 29 per cent of the 209 firms that failed to hit their targets according to the fourth Women in Finance Charter review.
The study monitors the progress of gender balance in the financial services industry at the senior management level.
It says the two most common reasons cited for missing targets were overly ambitious goals and Covid-19.
Other reasons included restructuring, low turnover in senior management, and high turnover of senior women.
The big picture is that more than 70 per cent have met or are on track to meet their targets but there is still work to do.
Just over a third or 35 per cent of the 209 signatories analysed have met their targets for female representation in senior management.
Also, a further 36 per cent that have targets with future deadlines said they are on track to meet them.
Three out of five firms either increased or maintained their proportion of women in senior management during the reporting period.
The review adds 2020 “marks a step change” in the quality and quantity of signatory reporting on the link between pay and diversity targets.
Nearly half or 49 per cent said the link is effective, while 47 per cent said it is too early to tell.
According to the report there is an increasingly granular approach to implementing the link to pay, and greater expectation that senior leaders will deliver.
Some of the big brands that failed to hit their targets include Nutmeg, Nucleus, Royal London and Legal and General and Quilter.
All the firms in the study are charter signatories and pledge to promote diversity according to the four principles in the box out below.
• Having one member of the senior executive team who is responsible and accountable for gender diversity and inclusion.
• Setting internal targets for gender diversity in senior management.
• Publishing progress annually against these targets on a page on the company’s website dedicated to their charter commitment.
• Having an intention to ensure the pay of the senior executive team is linked to delivery against these internal targets on gender diversity.
In the forward to the report Dame Jayne-Anne Gadhia says: “This fourth annual review of the effectiveness of the Women in Finance Charter is an appropriate reminder that, even amidst the challenges posed by the pandemic, British firms continue to recognise and prioritize the need to improve gender balance.
“We celebrate the firms that have met their targets this year, as well as those that continue to actively work towards achieving gender. Diverse and inclusive businesses are often those with the best workplace culture, the best employee retention rates, and the most sustainable returns.”
