Women on Boards: Financial Services Progress Report 2014

Women hold 19.3% of board seats in Fortune 1000 financial services firms, according to this year’s 2020 Women on Boards’ Gender Diversity Index. This is up a full percentage point from 2013 when women held 18.2% of financial board seats. Industries with a greater percentage of women directors include Utilities (21.1%) Consumer Defensive (20.8%) and Real Estate (20.2.%). Energy lags other sectors with 11.5%.

2020-wob-logo2020 Women on Boards is a national campaign dedicated to increasing the percentage of women on boards to 20% by 2020. The organization has issued the Gender Diversity Index annually since 2011. The percentage of women on corporate boards has increased, across all sectors, from 14.6% to 17.7% since the release of the first index.

Fortune 1000 banks leading in gender diversity with greater than 25% include:

  • Bank of America
  • East West Bancorp
  • KeyCorp
  • Wells Fargo

While the progress is impressive, there are approximately 6,900 banks in the U.S. and those included in the 2020 Women on Boards’ research is a small subset of the total.

We are encouraged by this progress, but still need to do better.

- Stephanie Sonnabend, Co-Founder and Chair, Women on Boards

Rebuild Compensation to Rebuild Trust in Banking

TrustIncentive compensation drives and reinforces company culture.  Highly respected Bank of England governor, Mark Carney, recommends changing bank compensation structures as a means to changing culture.  In addition to extending clawbacks of bonuses from five to seven years, Mr. Carney suggests putting fixed pay at risk.

Senior manager accountability and new compensation structures will help to rebuild trust in financial institutions.

- Mark Carney

HR Magazine:  Mark Carney Criticises Banking Culture, Pay Structure

Best Banks to Work For in 2014

The best banks to work for shower employees with profit-sharing bonuses, funnel them into leadership training programs and otherwise keep them happy.

- Joel Berg, American Banker Magazine, November 2014

Best Banks 2014jpgAmerican Banker Magazine has published its second annual ranking of the “Best Banks to Work For”.  In addition to providing bonuses and meaningful leadership development programs,  a common characteristic of the best banks is a  focus on managing employee health care benefits.  Controlling premium increases by offering high-deductible plans and enhancing wellness programs are strategies used at the “Best Banks to Work For”.

Best Banks to Work For 2014 – American Banker Magazine Article

Banking and Finance Employment: October 2014

Total Financial Activities employment showed little change (+3,000) in October, which was less than an average monthly job gain of 7,000 over the past year, the U.S. Bureau of Labor Statistics reported on November 7.  Employment increased slightly in real estate, insurance carriers and securities.  Employment declined in commercial banking.

Overall, a total of 85,000 jobs have been added to the Financial Activities industry since October 2013.  The majority of the job growth has been in insurance carriers and related activities.

Jobs continue to decline in commercial banking.

Jobs continue to decline in commercial banking.

Credit intermediation employment declined slightly (-1,800) in October and 39,700 jobs have been lost over the past year. Within the industry, commercial banking declined (-2,500) and 31,700 jobs have been lost over the past year.  Average monthly job loss in credit intermediation and commercial banking is 3,300 and 2,600, respectively.

Employment in securities showed little change in October and has increased by 20,600 jobs over the past year.  Average monthly job gain in securities since October 2013 is 1,700.

In October, insurance carriers and related activities employment was unchanged. This compares to an average monthly job gain of 5,100 over the prior twelve months.  Insurance and related activities employment is up by 60,600 jobs over the past year.

Real estate and rental and leasing added 2,300 jobs over the month and is up by 42,800 jobs over the year. Average monthly job gain in real estate and rental and leasing is 3,600 over the prior twelve months.BLS_logo

Over the past twelve months, the average weekly earnings of Financial Activities employees have risen by 2.6 percent.

Source:  BLS Employment Situation Summary, October 2014

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