The link between diversity and remuneration in financial services
The last decade has seen an unrelenting focus on culture within financial services. The link between poor culture, poor decision-making and conduct failings was laid bare by the 2008 global financial crisis. Focus has now shifted to the role other non-financial performance drivers play in supporting a better culture, including ESG and diversity and inclusion. One key question being asked by regulators is whether linking remuneration to diversity and inclusion metrics as part of non-financial performance assessment could be an effective way to drive progress.