Goldman Sachs’ UK gender pay gap widens to 54%; Riyad Bank considers IPO of investment banking unit
Goldman Sachs is set to report that the gap between what it pays men and women has widened to its highest level in six years within its UK operations. As reported by the Financial Times, citing a person familiar with the matter, the mean hourly pay difference at Goldman Sachs International rose to 54 per cent in 2023, up from 53.2 per cent in 2022.
The pay difference is primarily driven by the low presence of women in the bank’s highest-ranking positions. While this is common in investment banks, it is a matter to which Goldman has previously stated its commitment to improving.
Women constituted around 23 per cent of the lender’s workforce in the unit’s highest pay quartile in 2022, according to the UK data.
A spokesperson from the bank said: “Importantly, this gender pay gap report does not account for pay in similar roles or tenure, but we know that we need to do more to increase representation of women at the senior-most levels of the firm.”
Goldman’s pay gap currently exceeds any major investment bank in the UK, according to analysis by Financial News London on bank disclosures. In comparison, JPMorgan Securities reported a pay gap of 47 per cent.
Goldman CEO David Solomon has set a target for women to comprise at least 40 per cent of the bank’s vice presidents by 2025. In 2023, 32 per cent of the bank’s vice president hires were women. Since its founding, Goldman has never appointed a woman to the positions of chair, chief financial officer, chief executive officer or president.
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Saudi Arabia’s Riyad Bank, ranked as the kingdom’s third-largest lender in terms of assets, announced today that its board is considering an initial public offering of its investment banking arm, Riyad Capital.
The institution, backed by the kingdom’s sovereign wealth fund and government, disclosed that its board has issued a resolution to evaluate the readiness of the unit, outlining considerations such as the scale and framework of any potential IPO. Any potential deal would be contingent upon regulatory approvals.
Should it proceed, Riyad Bank would become the first Saudi lender to spin-off its investment banking business.
According to data from LSEG, Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund, possesses a 21.75 per cent ownership interest in Riyad Bank. Additionally, the Saudi government holds a 10.39 per cent stake.
The GCC countries have been experiencing a boom in IPO activity, accounting for around 45 per cent of total deal volumes in Europe, the Middle East and Africa last year.
Buoyed by elevated oil prices and heightened interest from foreign institutional investors, the GCC has defied a global slowdown in deal-making influenced, in part, by high interest rates.
Analysts expect IPO momentum in the region to remain strong throughout 2024.
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A Swiss private banker has been charged with multiple counts of theft, money laundering and fraud. He allegedly misappropriated client funds to bolster the finances of the struggling bank where he was employed.
The accused individual, whose identity is protected by Swiss law, allegedly took more than SFr14mn ($15.4mn) in a complex criminal scheme spanning seven years until 2015.
In the indictment filed in Bellinzona, it was revealed that he held a board position at a small Geneva-based private bank. The institution’s identity remains undisclosed.
This case follows a series of scandals spotlighting the potential for abuse due to the broad discretion Swiss bankers and wealth managers often hold over their client assets.
In October, Swiss banker Benjamin G, a former employee of Julius Baer, was convicted of stealing more than SFr22mn from the savings of an elderly couple. He had been given full power of attorney over his client assets.
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Cboe Clear Europe, an Amsterdam-based pan-European clearing house, has secured additional backing to roll out its central counterparty clearing service for securities financing transactions. Bank of America and State Street have committed to supporting the service, which is set to launch in Q3 2024 pending regulatory approval.
This announcement brings the total number of participants from banking institutions to nine, including ABN Amro, Barclays, Citi, Goldman Sachs, JPMorgan and BNY Mellon.
Cboe Clear Europe says that the service will assist its clients in addressing Basel III endgame and Basel IV frameworks concerning capital requirements regulation and the capital requirements directive.
It is expected to reduce risk-weighted asset exposures associated with bilateral SFTs and offer operational advantages leading to a reduction in fail fines. These include greater settlement efficiency, elimination of agent lender disclosures, and improved practices regarding fee management, corporate actions and post-trade lifecycle processing.
