Tougher Terms for Bank CEOs Highlight Gender Gap in Denmark
Tougher Terms for Bank CEOs in Denmark Highlight Gender Gap
(Bloomberg) -- A proposal to toughen requirements for bank executives in Denmark is inadvertently highlighting the lack of progress that women have made in the finance industry in a country otherwise known for gender parity.
The Danish Financial Supervisory Authority says that bankers contending for top jobs at the country’s biggest lenders should have at least 10 years of experience in the bank’s main area of business, with a large part of it in a leadership position.
According to the union representing the country’s financial sector employees, the 10-year requirement risks making it more difficult for women to be named to top positions, because too few have the necessary background.
“This demand for extensive experience means that women’s chances of reaching the top will be even more difficult,” said Steen Lund Olsen, deputy chairman of the Financial Services Union, in a statement. “There are simply not many women who have gained so much experience for that period of time.”
Women occupy a quarter of leadership positions in the finance industry even though they constitute half the workforce, according to a March report by the union and the employers’ association. They urged a renewed focus by boards and top management.
The union said the recommendation should be changed, including to allow experienced leaders in other industries to be selected as CEOs. While the FSA’s proposal mirrors practices elsewhere in Europe, the requirements need to consider the circumstances in Denmark, Olsen said.
The Copenhagen-based FSA is now holding public hearings on the proposal, which is part of a larger review of so-called fit and proper requirements.
The measure follows the agency’s rejection in 2018 of Jacob Aarup-Andersen as Danske Bank A/S’s new chief executive, for lack of relevant experience. Aarup-Andersen was the board’s choice to replace Thomas Borgen, who was fired amid the bank’s money laundering scandal. (Aarup-Andersen has since left Danske.)
Denmark ranks second to Sweden in the European Union’s gender equality index.
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