Careers in finance seem inaccessible to women. Despite laws pushing for better representation in leadership roles and the strong demands in this sector, why is it that less than one in six financial companies are led by a woman?
Have you ever seen a female bank manager? In 2024, only 16% of the world’s largest financial institutions are run by women. Not only is this figure disappointing, it is also slowly increasing (11% in 2014, 14% in 2023). At this rate, gender parity, and even diversity, seem unreachable. A paradox, given that the sector is actively seeking to feminise its workforce.
These efforts are recent, yet undeniable, even if the targets set are far from achieving perfect parity. They primarily address reputational risks and regulatory requirements.
« Promote gender diversity »
The Women on Boards directive, passed by the European Parliament in November 2022, stipulates in particular that the boards of large European companies must include at least 40% of the underrepresented gender by 2026. In France, the Copé-Zimmermann (2011) and Rixain (2021) laws seek to establish a framework enabling a better representation of women in management roles.
In the financial sector, some branches are attempting to set medium-term targets. For example, the members of the Financi’Elles network (including Société Générale, BNP Paribas, Groupe BPCE, AXA, among others) have committed to a common charter, intended to “promote gender diversity […] in order to accelerate women’s access to top positions within organisations in the financial sector”.
France Invest is another good example: the French association of private equity firms promises that by 2030, there will be “40% women in investment teams and 25% women in decision-making roles for investment committees”. Some certifications, such as B Corp and international labels, certifying companies’ corporate social responsibility, have also added gender diversity to their assessment criteria.
The more Women there are on Board…
In addition to the well-known ESG (Environmental, Social and Governance) criteria, it is also, although less-known, a matter of performance. Companies are pragmatic. These efforts respond to empirical evidence. Many studies demonstrated a simple relationship: the more financial companies are run by mixed teams, the more stable and high-performing they are (Christiansen et al., 2016; Sahay et al., 2018). For example, investment funds managed by women perform better. Professor Michel Ferrary, director of SKEMA’s Observatory for the feminisation of companies, shows that banks with more than 33% of women on their Board of Directors have a 20% higher price-to-earning (P/R) ratio, a measure evaluating a share price compared to its expected earnings. The price-to-book (P/B) ratio, which compares a company’s current market value to its book value, is 50% higher.
The findings from these studies make it even harder to understand why progress towards gender diversity is so difficult. As director of the MSc Corporate Financial Management at SKEMA Business School, I regularly hear about the difficulties that banks and investment funds encounter in recruiting women, particularly in competitive professions such as mergers and acquisitions, private equity and venture capital. The talent pool is desperately limited.
Demand without supply
From an early age, a barrier arises between young women and careers in finance. This is psychological. Well before they choose a field of study or career path, girls tend to turn away from scientific subjects, the only path to careers in finance. According to a study by the Institut des Politiques Publiques (2024), compared to boys, young French girls switch off from maths as early as their first year in primary school (cours préparatoire), regardless of social background.
This early rejection reflects a deep internalisation of gender stereotypes. Later on, young girls will continue to move away from scientific subjects in high school, and then in higher education. In France, the 2019 high school reform exacerbated this trend (see graph): the share of high school graduates following scientific studies is falling, especially for girls. Since the reform, it has dropped from 48% to 37%. Subsequently, young women only represent 41% of students in preparatory classes and 29% in engineering schools…
The situation in business schools is more balanced: according to the French Ministry of Higher Education and Research, in 2021-2022, women represented 51% of students in these schools in France.
Bad reputation
However, the early aversion to maths is not the only explanation. At least two other factors come into play: the frantic pace imposed by many of these professions, and their negative reputation.
These are elitist careers, yet particularly demanding: working in finance often means long hours. There is “an unfair trade-off between progressing in their careers and meeting the needs of their families”, indicated Janet Yellen, former Chair of the Federal Reserve of the United States, recently: concerns about personal fulfillment, lack of confidence, and difficulty finding a work-life balance.
On average, jobs in finance pay better than the others, but they are perceived as disconnected from social and environmental problems, at a time when many young people are looking for meaning and want their work to have a societal impact. According to SKEMA Business School’s 2024 Talent Barometer, 55% of young graduates see the reduction of their future company’s impact on the environment as a priority.
Nonetheless, corporate finance professions are all undergoing a transformation, through the concept of “sustainable finance” which will soon be strategic for all finance professionals. This is the main message of the ClimatSup Finance report by the Shift Project (2022). Financial analysis, for example, is set to become closely linked to extra-financial analysis: regulations are being strengthened to measure the ESG impact of companies’ activities. This shift demands reporting and analysis capabilities to be met.
Restore the image of maths
The first priority is education. We need to restore the image of mathematics at school, and awaken children’s curiosity for scientific subjects.
We also need to fight against gender stereotypes throughout young people’s school, professional and personal journeys. This means raising awareness from a young age, quotas, mentoring, and reshaping parental roles. Claudia Goldin, Professor at Harvard and winner, in 2023, of the Nobel Memorial Prize in Economic Sciences for her work on women’s labour market outcomes, particularly advocates for seeking equity within couples. She argues that this is the key towards improving gender diversity in finance.
Read also : Gender inequalities or the weight of a slow pace of change
Access to information about the wide range of career opporunities in finance needs to be improved. The financial sector has many facets, not everyone is a trader or a banker. While some professions are highly technical, quantitative, and sometimes isolating, others are more analytical and interpersonal.
However, education begins with professors: we must reform training courses in finance. We should rely on role models to spark inspiration, as even simple discussions can awaken awareness and break a female student’s self-imposed limitations. Some institutions also offer scholarships to high-achieving female students to encourage them to complete a master’s in finance. The content of these courses should also be reviewed: it is becoming clear that a cross-functional approach to finance is needed to support the transition. This will help adjust to the labour market demands and, above all, fulfil the aspirations of students of all genders.
