By: Benjamin Shaw ‘24
Volume IX – Issue II – Spring 2024
I. Introduction
The financial world, with its promise of high-stakes deals, lucrative rewards, and societal prestige, has long held a captivating allure. However, beneath its veneer of affluence and power lies a stark reality – an industry plagued by a persistent lack of diversity. According to the 2020 McKinsey Diversity Matters report, women in North America were significantly underrepresented in the financial-services workforce, particularly at the level of senior management and above. [1] In the banking sector, women made up 53% of the entry-level workforce but less than one-third at the SVP (senior vice president) and C-suite (executive-level manager) levels. Nearly one in four employees at the entry level is a woman of color, though this falls to one in 20 at the C-suite level. The representation of women and women of color falls off at every step of the corporate pipeline: from entry level to the C-suite, the representation of women of color falls by 80%. Despite progress, 64% of financial-services C-suite executives are still white men, and 23% are White women—leaving just 9% of C-suite positions held by men of color and 4% by women of color. This paper delves into the intricate dynamics at play, examining how the pervasive "culture" of investment banking often serves as a smokescreen for discrimination against women and other minorities. The interaction between legal rulings and societal advancement, showcased by the case of Price Waterhouse v. Hopkins, continues to represent a pivotal battleground for fostering a more diverse and fair society. It is imperative for financial institutions, as well as all employers, to actively address and deconstruct the covert biases entrenched within their organizational frameworks if they genuinely aspire to embody the meritocratic values they espouse.