Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

Bank of England Deputy Governor Sam Woods said more needed to be done to speed up progress in diversity and inclusion at financial firms he regulated.

POOL New/Reuters

Senior managers at financial firms could see pay linked to their progress in making their workforces more diverse and inclusive, Britain’s financial regulators said in a discussion paper on Wednesday.

The Bank of England and Financial Conduct Authority said increased diversity and inclusion improved how companies were run and how decisions were taken, creating a more innovative industry that offers better products to consumers.

Bank of England Deputy Governor Sam Woods said more needed to be done to speed up progress in diversity and inclusion at financial firms he regulated.

Story continues below advertisement

“A lack of diversity of thought can lead to a lack of challenge to accepted views and ways of working, which risks compromising firms’ safety and soundness,” Woods said.

Studies showed progress was slow, with the proportion of women chief executives in the sector rising from 1.7 per cent in 2001 to just 9.7 per cent by the end of 2020, the paper said.

It also said there were signs ethnic diversity was declining, while most senior roles were held by people from higher socio-economic backgrounds.

“We believe that targets for representation can be a powerful way of driving change through commitment to shared goals,” the paper said.

Senior managers could have a specific responsibility for diversity and inclusion policies to ensure the right “tone from the top.”

“Linking progress on diversity and inclusion to remuneration could be a key tool for driving accountability in firms and incentivize progress,” the paper said.

Firms could measure progress not only by collecting workforce data on gender but also gathering information on nationality, educational attainment, age, disability, sexual orientation, family and carer status and whether employees were working full-time, part-time or flexible hours.

Story continues below advertisement

The regulators should consider how far such data could be publicly disclosed and whether adverse findings in relation to inclusion and diversity could mean a person was not “fit and proper” to hold a senior role.

The discussion paper is open to public consultation until Sept. 30 and a further consultation on detailed proposals will take place in the first quarter of 2022.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies