Gender diversity at the largest U.S. banks - statistics & facts
Until recently, environmental, social and governance (ESG) issues mainly focused on corporate social responsibility, such as community development and volunteering. Its meaning, however, has broadened in recent years. The „social” segment of ESG now includes human rights, workplace safety, employee welfare and ,just as importantly, diversity and inclusion (D&I). Not only is D&I now a part of ESG, it has, in fact, become one of the ESG priorities for investors worldwide. Consequently, ESG reporting for companies now includes diversity and inclusion data, primarily focusing on gender and racial diversity in the workforce.
Banks in the United States are also increasingly focusing on D&I, although for now, we can only talk about real gender diversity in terms of the total workforce. The gender balance in the total workforce, however, can be deceiving.
The devil is in the details
One might think that since women represent more than 50 percent of the total workforce at most banks, they are successfully implementing measures to foster D&I. Recent company filings, however, reveal a mixed picture at the largest U.S. banks. Looking at gender diversity at the executive and senior levels, the share of female employees is much lower than in the total workforce. The share of female directors is similarly low: Out of the 15 largest U.S. banks, only one had more female directors than male directors. The relatively high share of female employees in the total workforce is mainly a result of the high share of women in lower-level corporate roles, such as administrative support positions. At PNC Financial Services, for instance, the share of female executive and senior-level employees is three times lower than the share of female administrative support workers.
Gender diversity in the financial sector: Work in progress
Data on the financial sector in general also shows the underrepresentation of women in most corporate roles, especially in senior management and above. The low share of women in leadership positions is not only an issue in the financial industry. Even in the consumer business sector, the one with the highest share of women on the boards of directors, the share of female directors is just above 30 percent. The silver lining is that progress has been made in recent years: Between 2014 and 2023, the share of women on boards in the financial services sector in the U.S. more than doubled. In addition, the share of women in C-suite and senior leadership roles is forecast to grow further in the coming years.
While U.S. banks have made strides in increasing gender diversity across their total workforce, leadership positions remain largely dominated by men. Efforts to promote women into senior roles have seen some progress, but a significant gap persists. As the industry continues to prioritize diversity and inclusion, enhancing gender diversity in leadership will be crucial for fostering equality and driving long-term success in the financial sector.
Banks in the United States are also increasingly focusing on D&I, although for now, we can only talk about real gender diversity in terms of the total workforce. The gender balance in the total workforce, however, can be deceiving.
The devil is in the details
One might think that since women represent more than 50 percent of the total workforce at most banks, they are successfully implementing measures to foster D&I. Recent company filings, however, reveal a mixed picture at the largest U.S. banks. Looking at gender diversity at the executive and senior levels, the share of female employees is much lower than in the total workforce. The share of female directors is similarly low: Out of the 15 largest U.S. banks, only one had more female directors than male directors. The relatively high share of female employees in the total workforce is mainly a result of the high share of women in lower-level corporate roles, such as administrative support positions. At PNC Financial Services, for instance, the share of female executive and senior-level employees is three times lower than the share of female administrative support workers.
Gender diversity in the financial sector: Work in progress
Data on the financial sector in general also shows the underrepresentation of women in most corporate roles, especially in senior management and above. The low share of women in leadership positions is not only an issue in the financial industry. Even in the consumer business sector, the one with the highest share of women on the boards of directors, the share of female directors is just above 30 percent. The silver lining is that progress has been made in recent years: Between 2014 and 2023, the share of women on boards in the financial services sector in the U.S. more than doubled. In addition, the share of women in C-suite and senior leadership roles is forecast to grow further in the coming years.
While U.S. banks have made strides in increasing gender diversity across their total workforce, leadership positions remain largely dominated by men. Efforts to promote women into senior roles have seen some progress, but a significant gap persists. As the industry continues to prioritize diversity and inclusion, enhancing gender diversity in leadership will be crucial for fostering equality and driving long-term success in the financial sector.
