‘Meritocracy’

Women working for Goldman Sachs face enormous gender pay gap

People walk past the entrance to the Goldman Sachs investment offices in Peterborough Court in London, England. (Photo by Carl Court/Getty Images)

Investment bank Goldman Sachs has disclosed its gender pay gap for workers in the United Kingdom, revealing that the firm has one of the biggest pay gaps in the country, according to the U.K. government. Women employees for the famous bank earned 56 percent less than their male colleagues, and earned 72 percent less on year-end discretionary bonuses. In a memo released on Thursday, representatives for the Wall Street firm said that the discrepancy was the result of a lack of women in higher-paying senior positions, and that the bank does pay men and women equally when comparing similar roles and performances.

“We are a meritocracy, and gender is not a factor in the way that we pay our people,” read a statement posted to Goldman Sachs’ website on Friday. “We pay women and men in the same way, using the same compensation criteria, including the nature of their role and their performance.”

In a memo to staff on Thursday, new Goldman Sachs president David Solomon said that the company would begin efforts to diversify by hiring an equal number of men and women college graduates in 2021 and going forward. While there are already a number of women performing lower paid work at Goldman Sachs, there remains a dearth of women in upper leadership — 88 to 90 percent of the bank’s partners are men, according to Bloomberg.

All companies with more than 250 U.K. employees have been required to disclose their gender pay gap by April 4, but only 2,700 of an estimated 9,000 companies, and few of the U.S.’s largest banks, have done so to date. HSBC, the U.K.’s biggest bank, reported an average gender pay gap of 59 percent — the national average pay gap is about 18 percent, according to the Office for National Statistics. A similar initiative in the U.S. that required companies with more than 100 employees to collect pay data by gender, race, and ethnicity was quietly axed by the Trump administration in late August. Ivanka Trump, who had previously supported the measure, said at the time that while “transparency is important,” she had decided the rule wouldn’t help combat the gender pay gap.

Read the full story at Bloomberg.

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