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In the first part of your presentation, you plan to analyse an ethical issue that has recently been reported in the financial press. Your objective is to demonstrate a prescriptive approach to ethical decision-making to the executives, which will help them recognise and correct ethical breaches in their own departments.The objective of the second part of your presentation is more ambitious. You will need to present how your allocated company is planning to achieve sustainability goals
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Corporate Ethics News
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References
Investment banking boys’ club
gender pay gaps near 50pc
Aaron Weinman Investment banking correspondent
Feb 27, 2024 – 12.00am
The biggest gender pay gaps in Australian workplaces are not found on
construction sites or down mines but behind trading screens in state-ofthe-art office towers on Collins Street or overlooking Sydney Harbour.
Investment banks are paying women less than 60¢ in the dollar when
compared to men, who continue to dominate senior deal-making positions
that come with long hours, high pressure and big bonuses.
Wall Street banks have some of the biggest gender pay imbalances in
Australia. At Morgan Stanley, total median pay for men was 48.2 per cent
higher than for women while the gap was 42.7 per cent at UBS; 42.5 per
cent at Barrenjoey; and 41.8 per cent at Bank of America.
From left, Richard Wagner, the CEO of Morgan Stanley whose gender pay
gap is nearly 50 per cent; Nick Hughes, co-head of UBS (42.5 per cent);
Brian Benari, the CEO of Barrenjoey (42.5 per cent), and Joe Fayyad Bank
of America (41.8 per cent).
Just below them were local investment bank Jarden, Goldman Sachs and
Deutsche Bank with median total pay gaps of 36.3 per cent, 37.2 per cent
and 37.7 per cent, respectively. JPMorgan and Macquarie Group’s
respective 18.9 per cent and 22 per cent were the slimmest of the major
investment banks.
The data was compiled by the Workplace Gender Equality Agency for all
private-sector employers with more than 100 employees. Released on
Tuesday, the data looked at pay throughout 2022 and 2023 and showed a
countrywide median total pay gap of 19 per cent.
Wall Street firms – long known as boys’ clubs – largely outweighed the
national average, as mostly male bankers were well paid for long hours and
frequent travel that often culminated in deals that reaped millions of
dollars in fees and bonuses.
In fact, when bonuses are excluded, the gap shrunk to 25.1 per cent at
Morgan Stanley, 35.1 per cent at UBS, 33.8 per cent at Barrenjoey and 32.7
per cent at BofA.
Not just banks
Stockbrokers and wealth managers, too, recorded wide gaps in genderbased pay because they were dominated by men who get the lion’s share of
bonuses.
Canaccord Genuity lodged a median base pay gap of 12.9 per cent, but this
ballooned to 55 per cent on a total pay basis, while rival stockbroker Euroz
Hartley recorded a 24 per cent gap and 61.9 per cent gap for total pay.
Others like Ord Minnett went from -4.9 per cent on base pay to 43.4 per
cent total pay, and LGT Crestone recorded 36.5 per cent and 42.5 per cent.
Jarden’s co-chief executive, Sarah Rennie, said the gender pay gap
persisted “due to the under-representation of women in senior positions,
which is an industry-wide issue”.
“We are actively working to address this imbalance, but we recognise it is
going to take time and effort to see material positive change,” Ms Rennie
said.
Citi, which logged a 25.1 per cent gap in base pay and 29 per cent total pay
gap, acknowledged the need to bridge the divide and elevate more women
to better-paying jobs.
“A significant contributor to the gender pay gap is the under-representation
of women in higher-paying, senior and client-facing roles at Citi and
throughout our industry,” said Citi Australia’s CEO Mark Woodruff. “There
is more to be done to reduce this gap”.
UBS’ joint country head and chief operating officer for Australasia Nick
Hughes said its gender pay gap would only “be narrowed by increasing the
number of women in leadership and higher-paying roles”.
“Our execution strategy is focused around three simple actions: hire more
women, retain more women and promote more women,” Mr Hughes said.
The country’s gender pay gap was different to the subject of equal pay, said
Goldman Sachs Australia CEO Simon Rothery. It did not adjust for
seniority, part-time roles, or the type of job. “Equal pay, on the other hand,
is the practice of paying men and women performing similar roles in a
similar way – which is what we do at Goldman Sachs,” Mr Rothery said.
Client-facing roles, largely held by men, garnered bigger bonuses compared
to operational and administrative positions including information
technology, human resources or communications.
More women in finance
Banks have bolstered junior ranks with more women at graduate level, and
some including Citi and RBC Capital Markets have participated in Women
in Finance initiatives at universities to encourage young women to consider
careers in banking.
“We still need to do a better job of promoting investment banking as a
career option for young women because, despite prioritising gender balance
for our annual intern and graduate programs, we still see applications from
men outnumbering women,” Ms Rennie said.
Morgan Stanley has increased the women in its local business to 42 per
cent this year from 37 per cent in 2021, a spokeswoman for the bank said.
“Meaningful and sustainable change will take time,” said Morgan Stanley
Australia CEO Richard Wagner, adding the firm was committed to
investing in women and achieving gender balance “across all levels and
divisions”.
Goldman’s Mr Rothery also stressed that bridging the gap would take time.
Senior positions such as a managing director role is usually achieved
after decades of service to a bank.
And the challenge, especially for client-facing roles, was convincing women
to stay in their roles long enough to scale their pay.
“[Goldman Sachs’] numbers do reflect an under-representation of women
at our most senior levels … We have made progress over the years, yet we
have significant work to do,” Mr Rothery said.
Source: https://www.afr.com/work-and-careers/workplace/investment-banking-boys-club-gender-paygaps-near-50pc-20240223-p5f7fq
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