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TSB bonus headache over gender balance failure

Oscar Williams-Grut
Senior City Correspondent, Yahoo Finance UK
A TSB bank branch in central London. Photo: Neil Hall/Reuters

TSB executives could see their bonuses capped for failing to meet ambitious targets on gender balance, it has emerged.

The Guardian reported on Tuesday that TSB has failed to hit its target of having at least 45% of women in senior roles at the bank by 2020. In fact, the proportion has slipped from 41% in 2017 to 38%. The bank has pushed back the deadline to hit its target by five years.

The target was tied to executive bonuses, the Guardian said, and TSB’s leaders could see their awards capped as a result.

Yahoo Finance UK understands that no final decision has been taken on bonus awards and the gender balance target is one of several measures tied to the bonus decision.

A spokesperson for TSB said: “TSB takes gender diversity very seriously. We set an initial stretching target for between 45-55% of our senior roles to be held by women by 2020.

“We’re currently at 38% and although we are making progress through initiatives such as our Promotion Ready and Aspiring Women programmes, we have revised our target. Internally, we are tracking interim targets as our ambition is to deliver on these targets before 2025.”

The 2020 target was originally set three years ago after the bank signed up to the government’s women in finance charter. TSB’s new target is to hit 45-55% of senior roles held by women by 2025.

While TSB has fallen short of its original target, the bank is still one of the more progressive lenders when it comes to gender equality. It is one of two UK banks led by a female chief executive and women make up 36% of its board. Earlier this year the bank was named the fifth best large company for women to work for.