Gender gap on Wall Street still needs mending
The latest diagnosis of the role of women on Wall Street still leaves much to be desired. Despite an aggressive PR focus on pushing for more women at the big table, very few have made it recently, and those who have are earning a smaller paycheck than their male counterparts.
In a recent analysis of the annual proxy statements of 24 large U.S. banks, Fortune researchers found that just 11 of the 129 employees who were identified as top-paid bankers were women. Banks are required to release the compensation totals of its chief executive officer, chief financial officer and its three highest-paid employees, though some go deeper.
What’s more, the women who made the cut earned, on average, 78% of what the highest-paid men took home. Sadly, that’s actually a better ratio than what’s seen across the industry as a whole. Female finance professionals earn 66% of their male counterparts, according to Fortune, marking the worst ratio in any industry. The average pay disparity across all industries is 77%.
Goldman Sachs’ latest partner class is 14% women, for example, which is actually the highest percentage since at least 2006. The most recent class of managing directors at Goldman was 20% women, down from 23% the previous year. Same song, different in American boardrooms. Women hold 17% of all board seats, a number that hasn’t budged in a decade.
With this very thought in mind, a British group called the 30% Club launched in the U.S. on Tuesday. With the backing of billionaire investor Warren Buffett and others, the club may hold more influence than other initiatives that haven’t been able to move the meter.
Buried in dozens of Goldman Sachs’ employee profiles are examples of the most difficult and interesting questions they were asked in interviews.
Skip McGee, the head of Barclays’ U.S. business and a key holdover from Lehman Brothers acquisition, is leaving the firm. The move leaves plenty questions about the British bank’s willingness to pay U.S. staffers and suggests we may soon see an exodus of ex-Lehmanites.
Deutsche Bank said on its earnings call that it will add 500 compliance staff this year and double its spending on compliance systems. All in all, the quarter wasn’t that bad. The German bank beat estimates, although its capital numbers worsened.
Despite a tumultuous last year, several big banks are refusing to give up on their dormant fixed income teams. "There is little you can do about the cyclical challenges, you just have to ride it out, but the real challenge is to figure out what isn't coming back,” said Rich Herman, co-head of fixed-income and currency trading at Deutsche Bank.
Here’s a wacky story about a Soros Fund employee who is being accused of stalking his ex-girlfriend and ruining her financial career.
And here’s a feel-good story about billionaire hedge fund managers being forced to wait in line.
Apollo Global Management is breaking the mold with the new way it will pay its top brass. Moving forward, partners will be paid partially in stock that won’t vest for three years, in addition to some cash. Surely this will set the precedent for other public PE firms.
Buzz Around the Office
A Pennsylvania judge has okayed the 2011 sale of a woman’s house due to a $6.30 tax lien. The house, valued at $280,000, sold for just $116,000. She’ll net $115,993.70 after settling her tax bill.
Quote of the Day: “[Skip] McGee was the guy behind a push for higher pay for bankers and with this move [Barclays CEO Antony] Jenkins is taking a much tougher line on compensation.” – banking analyst Christopher Wheeler