Accents still determined career progression in banks

Financial firms and banks operating in London’s Square Mile have been told to tackle class prejudice and ensure half of their senior leaders come from working-class backgrounds by 2030.

The City of London Corporation (CLC) – it is the body that oversees London’s Square Mile.

The CLC found that accents and parental status still determined career progression in the financial sector.

In senior leadership positions, only 36 per cent of staff were from working-class or lower socioeconomic backgrounds.

Leadership roles include those at the board, executive committee, and partner levels and those at the two levels below.

Globally, the UK has one of the lowest rates of social mobility. “People from working-class backgrounds do not have access to the same opportunities as those from professional backgrounds, and those who are already economically advantaged tend to stay at the top,” says the report.

The report found that although about half of all financial services employees hail from working-class or intermediate backgrounds, they progress through the ranks slower than their more affluent counterparts and are paid less.

A task force has been established to tackle class prejudice and has made several recommendations for companies, regulators and the government to fulfil by 2030.

Workplace diversity targets will be set and recommended by regulators, and executives should be responsible for ensuring the change happens.

Andy Haldane, former Bank of England chief economist and co-chair of the task force, said, “For too long, personal growth has been constrained by people’s socioeconomic background. [The] recommendations signal a break from the past.”

The task force will review the targets in 2025 to ensure they are realistic.

“This is the S in ESG in action,” says David Duffy, CEO of the Corporate Governance Institute. “Powerful organisations must be diverse and representative of their customers and communities. Otherwise, groupthink will take over.”

Corporate governance is the rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community.

Good corporate governance helps ensure that a company is run ethically and transparently and accountable to its stakeholders. It is an essential aspect of running a successful business and is often a critical factor in attracting investors. Class prejudice is not a sign of good governance.