Virgin Money Boss Gadhia criticises lenders failing to join gender equality charter

IMF
The cityscape and skyscrapers of the financial district, The City of London, including the Heron Building, the Walkie-talkie and Tower 42 landmarks.

The chief executive of Virgin Money (LON:VM) has pointed to Goldman Sachs (NYSE:GS) and JP Morgan (LON:JMC) for their failure to sign up to the government’s charter to promote gender balance in the City of London.

Jayne-Anne Gadhia. who designed the “women in finance charter” did not name the two lenders, but  told MPs on the Treasury select committee: “There are two investment banks that I would have liked to have signed up that haven’t yet.”

“One area of financial services I think we should shine a spotlight on is insurance. The insurance sector is definitely less committed to this agenda than the banking sector,” she added.

Gadhia pointed out that whilst 114 signatories have signed the charter, more support was needed. Speaking about Inga Beale, the chief of insurance market Lloyd’s, and her contribution to the sector, she said: “Her view is that the insurance sector can do a lot more in order to progress women in insurance and we need to look at the barriers to progress there,”

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“The most supportive part of financial services to the charter are the banks, which are almost universally supportive of what we are trying to achieve here, and also are making the most progress.

“I wonder if that is because they have tried to work out what to do about their culture post-crisis, it has held banks’ feet to the fire more quickly than in other areas of financial services.”

As one of the most senior women in the banking sector, Gadhia shared stories she faced with senior men. One included a male executive who told Gadhia he was reluctant to promote women in case they would get pregnant.

Gadhia pointed to the importance of “calling out” this culture and attitude that is so prevalent in banking.

While JP Morgan declined to comment, Goldman Sachs said it was “supportive of this review from the outset and endorse its objective of increasing the representation of women in senior management roles in financial services”.