Women in banking expect bonuses to rise by more than men this year
Our annual compensation survey has been throwing up some interesting results. Bonus expectations correlate with seniority. BNP Paribas bankers are more optimistic than Goldman Sachs bankers. Women are expecting bonuses to increase by more than men.
Yes, the women who responded to our survey expect their bonuses for 2022 to be 6.3% higher than 2021. Men expect an increase too, but theirs is only 4.4%.
As banks create hard targets for female representation, women in banking are more valuable than before. Goldman Sachs, for instance, wants 50% of its junior hires to be women. Similar targets exist at many banks, including JPMorgan.
Banks own targets come as regulatory bodies are shining a brighter light on diversity. In the UK, the Financial Conduct Authority plans to require that banks make their diversity information public, for example. And gender pay gap reporting has clarified the extent to which women in banks earn less than men.
Banks therefore need to hire, retain and promote women and it's possible that women are coming to appreciate this. It probably also helps that the women in our survey were comprised of a proportionally higher number of MDs than the men we surveyed.
Women's bargaining power is only likely to get stronger. Our analysis of diversity statements at Lazard, the boutique, found that the bank will have to have a female proportion of around 85% of its intake for the next five years to meet targets.
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