Women in Finance

Abstract

The percentage of women in executive positions within the finance industry is remarkably low. This evident gender disparity is frequently attributed to the “glass ceiling” phenomenon. This study seeks to examine the following research question "What are the barriers preventing women from reaching executive positions in the finance industry?". In-depth interviews were conducted with 12 women employed in the Norwegian finance industry. Primarily in the sectors investment banking, equity analysis, and asset management, where female representation is particularly low. The study identified several key barriers: family-related barriers, underrepresentation of women, social roles and stereotypes, discrimination, and structural barriers. The findings suggested that the main challenge for the disparity between men and women happens when women have children, as maternity leave significantly impacts their career progression. The low percentage of women in leadership roles also affects their ability to establish client relationships and bond with male colleagues and leaders. Some participants reported feeling the need to conform to the masculine work environment, adopting behaviors associated with men to fit in. Moreover, social roles and stereotypes played a crucial role, with women receiving different expectations and being assigned non-relevant social tasks that hindered their career progression. Several women also reported being frequently appointed roles as secretary and assistant. Discrimination emerged as another prevalent theme, as several women experienced being treated differently and that they had to work harder than male colleagues to prove themselves in their positions. Furthermore, structural barriers were identified. Generally, the industry appeared to reveal a limited amount of leadership positions, due to flat organizational structure. In addition, the leadership positions were appointed based on performance which was found to be closely related to client relationships. Structural barriers appeared to impact women more than men, as all the barriers identified in this study appear to impact the women's performance and client relationships. The findings support existing theories and offer valuable insights for companies aiming to improve gender equality. The direct link between diversity and profit growth should motivate organizations to prioritize diversity initiatives. Future research can explore the transferability of these findings to other male-dominated industries and investigate the effectiveness of measures aimed at reducing barriers.