Finance Monthly November 2019 Edition

Workplace for women The opportunity for women in finance to reach top roles does exist, and the good news is that the workplace for women is changing, with greater flexibility around maternity and paternity leave certainly helping. The internal focus of businesses to identify and support talented women is also a contributor, as organisations take seriously their commitment to diversity, and recognise that women on boards add valuable perspectives at a senior level. We see many male leaders reflecting on their unconscious bias and behaviours which may in the past have inadvertently discouraged women from reaching their full potential. This shows they can be women’s biggest allies in reducing the gender gap in finance. Increasingly, we see evidence of promising female finance leaders coming through from a wide cross- section of academic disciplines, inspired by initiatives such as STEM Learning, which has encouraged young women to pursue education in maths, tech, engineering and the sciences. Graduates in these areas are well-positioned to later secure roles in accountancy practices, the finance industry, or in financial leadership, because of their strong numerical and analytical bias. This is helping the next generation of women to enter the workplace equipped with the skills to make it to the top. Financial leadership is certainly in- step with the rise in the number of women at the top - in 2018, 44% of the senior finance appointments we made were of women. This would have been closer to 30% five years ago. However, it still remains that whilst there are many women in finance, there are simply not enough at board level. Since 1998, The Female FTSE Board Report produced annually by Cranfield University’s School of Management has monitored trends in women’s representation on FTSE 350 boards. According to the 2019 Report, there are 339 female held directorships across the FTSE 100 corporate boards. The percentage of women on those boards has increased from 29% one year ago to 32.1%, so it is a positive step in the right direction. The report also identifies some finance specific insights: • There is a high degree of financial literacy amongst women in FTSE boards, as 55% have held financial roles across finance, auditing, investment, treasury and banking. • 13% of women directors hold a recognised financial qualification, and 22% hold an MBA degree, in which finance is a core subject. Certainly, this is evidence of the value of financial qualifications to a strong career path to the top, but many boards are still not adjusting company culture to encourage women to pursue executive careers. Shifting skills base Financial leadership roles have evolved from the more straightforward financial record keeper to a business leader with exceptional financial intelligence, and proven skills across commercial, strategic, operational and leadership competencies. As well as financial skills, it’s important to “ “ Whilst there are many women in finance, there are simply not enough at board level. 37 www.finance-monthly.com WOMEN IN FINANCE - GENDER PAY GAP