London missing the femanine touch in the boardroom

The crisis in the financial sector may have been worsened by the lack of City of London female directors according to a new report by the Commons Treasury Committee.

According to MPs, the lack of boardroom diversity may have the proper scrutiny and challenge of making decisions at an executive level less effective.

The Committee however stated that the objective now is not to advocate a law change, but to boost the amount of female representation at the senior level.  However, it did warn that if there are no changes made then compulsory measures may be in order in the future.
The Committee, which coincidentally only featured one female MP out of its 14 members, stated that among financial firms less than two percent of all their executives are female.

The Women in the City report is a result of its work to figure out how the financial crisis occurred.

According to the committee the sparse presence of females on the financial firm boards might have increased the ‘group think’ mentality which consists of group members choosing to go with the general consensus and erroneously minimizing the conflict that could come by skipping evaluation and critical testing.

Committee chairman, John McFall, stated that they are not claiming that women in charge would have prevented the financial crisis, but instead the fact that at the board level women are not adequately represented throughout the financial sector.
Additionally, the report also showed that there is still what was referred to as a ‘significant pay gap’ between women and men in the City from entry level up through boardroom employees.