More women on bank boards but fewer in junior management, ESRI survey finds

A report by the Economic and Social Research Institute (ESRI) published today also found that female representation in senior and middle management at 54 firms was relatively flat last year.

The survey - the first progress report on the 54 firms that signed up to the industry-led ‘Women in Finance’ charter last year - found the proportion of women on company boards rose five points to 37pc last year.

The representation of women on firms’ executive committees rose three points to 35pc.

Female representation in senior management increased by one point to 39pc, and by the same amount in middle management, to 49pc.

But female representation at junior management level declined from 51pc to 49pc.

The representation of women was 50pc across all roles in the 54 companies surveyed.

Firms that signed the charter include lenders AIB, Bank of Ireland, Permanent TSB and loan servicing firm Pepper. All have committed to hiring and promoting more women.

Most financial firms (63pc) said a low number of female applicants for roles was the main barrier to improving gender balance.

Low turnover in senior management roles was the second-most cited barrier, for 56pc of firms surveyed.

Almost a third of respondents (30pc) said the hours and demands of senior roles were standing in the way of hiring more women for top jobs.

Experts say hiring more women at senior and middle management is the best way to improve any gender pay gaps, which tend to be higher in the banking sector.

Analysis by the Irish Independent found the gender pay gap in banks and insurance firms last year was just over 23pc - meaning that for every €1 men made per hour, women made €0.77 - almost double the gap in the wider economy.

The bonus pay gap in the sector was even larger, with men making on average 40pc more.

Patricia Callan, director of Financial Services Ireland, the Ibec group representing the sector, and chair of the Women in Finance charter steering group, said the figures show “significant progress”.

But Junior Finance Minister Jennifer Carroll MacNeill said firms were “too slow” to sign up to the charter and called on more fintech and aviation financing companies to join.

“This is an industry-led initiative. As minister, I cannot hire the women into financial services firms, I cannot promote them nor can I sign their firm up to the Women in Finance charter,” she said.

She said that 10 more firms are ready to sign up – including consulting giant Grant Thornton, insurer Canada Life and the Irish League of Credit Unions – but pointed out that there are around 800 firms operating in the industry.

“This charter is not for the purposes of ticking a box. This is about making serious cultural difference to a sector where women are systemically underrepresented at middle and senior management.

“Junior staff in the financial services industry see this, and they need to see a new plan for the sustainability of their participation in the industry. It is obvious that the systemic impact of early childhood years parenting is not equally felt by both parents.”

Firms will have to report on their 2023 gender pay gaps in December, based on a snapshot date of their payroll this month.