International Women’s Day is an opportunity for us to celebrate the achievements of women and reflect on the progress made towards gender equality. And yet this year feels different, says Fiona Hathorn, CEO of WB Directors, sharing her insights with IFA Magazine as part of this week’s digital series looking at women in finance.
The backlash against gender equality, and diversity, equity and inclusion more broadly, is growing. Amidst the news of companies slowing, or eradicating inclusion efforts, there is a growing perception that ED&I initiatives, including those focused on gender, might be risky — politically, culturally, financially. Such assertions tend to lack any empirical backing while there is growing evidence to show that ED&I can drive company performance by enhancing innovation, problem-solving, employee engagement, decision-making. However, despite the evidence, when evaluating growth strategies many companies are asking: is inclusion business-critical? Against this backdrop, it’s vital we remember the roots of International Women’s Day as a day of protest and activism for women’s rights.
Gender diversity across the FTSE All-Share
When it comes to closing the gender gap across the financial services profession, the WB Directors Hidden Truth Report shows that across the FTSE All-Share, the percentage of women on boards in financial services firms has increased from 34.5% in 2023 to 36.2% in 2024. However, the percentage of women in executive roles in financial services firms remains low, with only 15.6% of executive directorships held by women in 2024. In AIM-listed financial services firms, the percentage of women on boards decreased from 23.1% in 2023 to 21.8% in 2024 while the percentage of all-male boards in AIM-listed financial services firms increased from 25% in 2023 to 30% in 2024.
The report highlights that progress has been slow, fragile and uneven and spotlights the need for continued efforts to close the gender gap, particularly in executive roles and on AIM-listed boards. Through a combination of tackling representation, workplace policies, culture and education, the financial services industry can accelerate progress.
Implement Transparent Pay Structures and Regular Audits
I’m a huge fan of the phrase “what gets measured gets done”. Adopting a data-driven approach means the industry can measure and track key indicators such as the percentage of women in executive roles, pay gaps between men and women, and the effectiveness of ED&I initiatives.
One of the most effective ways to address the gender pay gap is to establish transparent pay scales and ensure that compensation is clearly linked to roles, experience, and performance, rather than being influenced by gender. Conducting regular pay audits and sharing the results with employees creates accountability whilst also fostering an inclusive culture built on trust and fairness.
Dismantling Stereotypes in the Financial Sector
The financial services industry is highly competitive, often requiring long hours and perceived aggressive deal-making traits that are traditionally associated with masculinity. There is a cultural expectation that men are naturally better suited to these high-pressure environments, while women are encouraged to pursue “safer” or “softer” roles in finance. However, there is no evidence that women cannot cope in high-pressured environments. In fact, there are several studies that suggest women take better risk adjusted decisions. Warwick Business School found that female traders outperformed male traders in terms of risk-adjusted returns, in part due to differences in attitude towards risk as well as societal factors that lead women to be more cautious in their decision-making. A Harvard Business School study from 2018 found that gender diversity in investment teams led to better investment outcomes and reduced volatility.
Dismantling stereotypes in finance is a crucial step towards creating diverse, high-performing teams. By challenging outdated preconceptions, we can encourage a more inclusive environment that benefits from the diverse perspectives and skill sets that come with a more heterogeneous workforce.
Support Career Development and Leadership Opportunities for Women
Many women start in the industry but struggle to keep the pace of opportunity growth when they have children. The lack of flexible work options means many women drop out before reaching senior levels, which is compounded by inconsistent paternity leave policies and outdated expectations that place the burden of childcare on women.
The financial industry will benefit from creating clear, structured pathways for women’s career advancement. This includes mentorship programmes, leadership development opportunities, and initiatives that ensure women have equal access to high-visibility projects. This might also include rethinking expectations around work-life balance and ensuring policies support gender equality, such as paid family leave, flexible hours that enable both men and women to balance their work and personal lives more effectively.
Gender-Sensitive Advisory Training & Products
It’s crucial to remember that the current generation of women is the first to have full access to financial services and products, including those offered by independent financial advisors. This creates a unique opportunity to serve a growing and increasingly diverse market of women investors, who have historically been underrepresented in the financial industry.
By designing products and services that are tailored to the unique needs of women, financial services firms can tap into a large and growing market, build customer loyalty, and improve financial outcomes for women. To support this, financial advisors of all genders should receive training on gender-specific financial needs in order to gain a deeper understanding of how women face different financial challenges. These insights will lead to greater innovation allowing advisors to tailor their advice to better serve women. For example, offering retirement plans that account for career breaks or products that help with balancing family care responsibilities and wealth building can make a big difference.
My hope this International Women’s Day is that the financial services profession and IFAs ignore the external noise and push back and instead double down with a renewed focus to implement these strategies and create a more equitable industry for all.
About Fiona Hathorn, CEO of WB Directors
Fiona, CEO of WB Directors, a purpose-led business working to increase diversity in executive and non-executive leadership. She is an accomplished non-executive director and advisor across several organisations. Currently, she serves as an advisor to Peel Hunt (a mid-cap stockbroker), is the Chair of the Nominations Committee at Hanx (an FMCG start-up) and is a member of the advisory board for the Global Institute for Women’s Leadership at King’s College London.
Fiona is a recognised expert in Governance, Regulation, and Talent Management. Previously, she was a director at Hill Samuel Asset Management, where she led the Global Emerging Markets Equity Investment Team. Additionally, she has advised the Financial Reporting Council (FRC) and served as a judge for the Non-Executive Director Awards, sponsored by The Sunday Times, as well as for Veuve Clicquot’s Bold Woman and Future Awards.
