Introduction
Progress on gender equality remains particularly slow in financial industry
Despite regulatory initiatives at EU level and within member states, gender equality remains a persistent problem in Europe's financial sector. Women face many barriers, including hiring practices and employment terms in areas such as parental leave, workplace culture and succession planning, although studies regularly point to the benefits of a representative and diverse workforce. Recent studies have found that in the banking industry, women occupy just 16% of senior posts worldwide and 24% of executive board positions at Europe's largest banks, with regulatory initiatives yielding only incremental gains. A study of recruitment in Germany's asset management industry has found that the share of female hires has stalled or gone into reverse since 2023; although companies complain about a relative lack of qualified women candidates, the backlash against equality, diversity and inclusion in the US may also be affecting attitudes in Europe. However, there is evidence that statutory gender quotas for public company boards in 11 European countries have boosted the number of female CEOs at private companies, especially in countries such as France and Italy that have legally enforceable quotas. A further impetus will come in June with the entry into effect of the EU's Women on Boards Directive, which will set minimum requirements for female directors on listed company boards.
Key Governance Developments
Gender equality progress runs out of steam in German asset management industry: study
Progress towards gender equality in Germany's asset management industry has stalled or gone into reverse, according to a study by Fondsfrauen conducted with KPMG Germany and the University of Mannheim. The researchers found that while women accounted for a record 38% of job applications in the sector in 2024, only 36% were hired, compared with an above-average proportion in 2023. Companies surveyed cite a shortage of qualified female candidates as well as requests for flexible working. However, the study challenged these arguments, noting that women often have stronger academic results. Female representation in leadership positions also remains limited, with women making up just 25% of managers and 16% of managing directors. The study's authors argue that the growing backlash in the US against diversity, equity and inclusion initiatives has begun to influence diversity initiatives in Europe.
Best source: Dfpa (in German)
See also: Fondsfrauen (in German)
Mandatory gender quotas spur increase in female CEOs at private companies: London’s Bayes Business School
Statutory gender quotas for public company boards in 11 European countries have led to an increase of more than 8% in the number of female CEOs at private companies, according to a study by the University of London's Bayes Business School (formerly the Cass Business School). Greater visibility of women in leadership roles, the study suggests, helps break down prejudice in companies outside the reach of regulation. The impact is most pronounced in countries including France and Italy that have legally enforced quotas, especially in sectors dominated by listed companies. The EU's Women on Boards Directive, which will set requirements for minimum female representation on listed company boards, takes effect from June.
Best source: Bayes Business School
UK regulator publishes definitive policy on non-financial misconduct
The Financial Conduct Authority has published its definitive policy on non-financial misconduct, amending the FCA Handbook and issuing updated guidance for the Code of Conduct for Staff sourcebook and Fit and Proper test. The measures, effective from September, clarify how financial businesses should address serious workplace misconduct, including bullying and harassment. The revised rules and accompanying materials are intended to ensure a consistent approach applicable to both banks and other institutions. Companies will be required to update internal policies, train employees and implement new governance processes to comply with the changes.
Best source: Osborne Clarke
Most family offices in Benelux countries have investment committees, but many lack other governance structures: study
About 59% of family offices in Belgium, the Netherlands and Luxembourg already have an investment committee, but most lack other governance elements, according to a report by private bank Van Lanschot Kempen and research firm Campden Wealth. It says 41% have a family mission statement, 38% a family office board, 35% a family business board and 24% a family council, but 19% have no formal governance structures. Just over half of the 59 family offices surveyed, of which nearly 60% are controlled by the first-generation founders, expect to pass on control to heirs within the coming decade and around one-third have drawn up personal development plans for next-generation family members. The report also finds that family offices in the region increasingly have leadership roles held by external professionals and a strong focus on private equity, which already represents 27% of their average investment portfolio, the same as for listed equities.
Best source: Van Lanschot Kempen
See also: Campden Wealth
Monte dei Paschi board adopts inclusive nomination process as CEO Lovaglio seeks new term
The board of Banca Monte dei Paschi di Siena has approved new rules allowing all directors to participate in selecting candidates for governance organs, removing a potential obstacle to the reappointment of CEO Luigi Lovaglio. His current term is due to expire in April but his future remains uncertain due to lack of support from a major shareholder, Francesco Gaetano Caltagirone, and an ongoing judicial inquiry into the bank's controversial acquisition of Milan-based Mediobanca. Lovaglio, who was the driving force behind the Mediobanca transaction, is seeking another term to oversee the integration of the two banks.
Best source: Reuters (subscription required)
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