Proposals for bonuses tied to gender balance criticised

The government backed review out today, recommending that companies in the financial services sector tie their bonuses to gender parity targets, hasn't found favour with all.

Introducing the policy could backfire by alienating men and breed resentment towards women, warns Helen Morrissey, founder of 30% club, while Simon Nevin from the Institute of Directors fears that managers might be promoting women just to safeguard their bonuses.

Indeed gender parity in the financial sector is still lagging behind with women making up only 23 % of boards in the UK, and just 14% on executive committees.

The recommendations in the review were made by Jayne Anne Ghadia, Virgin Money chief executive, and the Treasury fully accepted these. The Lloyds Banking Group, Barclays, HSBC and Royal Bank of Scotland will follow Virgin Money in signing the charter today.

Meanwhile a new survey out today from law firm Withers recorded a seven per cent increase in the number of female partners hired in the tax and private wealth sectors.