Women CEOs Face Challenges in Canadian Banking Despite Diversity Efforts

Despite Canadian banks' aggressive efforts to promote women into executive roles over the past two decades, none of the country's Big Six banks has been led by a woman CEO. This lack of female representation at the top signals that an increase in women CEOs is unlikely to happen soon in other areas of business where gender diversity is less of a priority.

The scarcity of women CEOs in banking is not limited to Canada. Women head less than 5% of America's publicly traded banks and only one of the Big Four banks. In Europe, just 4 out of 62 major banks have women CEOs. While women are better represented in executive ranks in Canada compared to the U.S. and Europe, research shows that gender diversity often hits a ceiling.

In the past year, the number of women bank CEOs in Canada has even decreased. The article suggests that women are often assigned to senior posts that don't drive growth in the banks' revenues and profits, and mid-career quitting is more common for women in banking.

Why this matters: The lack of women CEOs in Canadian banking highlights the ongoing challenges in achieving gender equity in leadership positions, despite diversity efforts. This has broader implications for women's representation and advancement in other industries where diversity may be less prioritized.

Meridian Credit Union is focusing on flexibility and mentorship to promote gender equity and female leadership. According to the Canadian Credit Union Association, in 2023, only 8% of Fortune 500 CEOs were women, while 30% of CEOs and general managers at Canada's credit unions were women, and women made up 34% of credit union boards.

Jay Ann Gilfoy, CEO of Meridian, believes that to become a CEO of a large Canadian bank, one needs a certain level of experience, and many career paths become siloed along the way, limiting the talent pool. She also emphasizes the importance of ensuring the systems and processes inside these organizations are open to diversity.

Gilfoy highlights the role of flexibility and mentorship in attracting and retaining female leaders, particularly for those with young children or caring for parents. She has been involved in many mentor-mentee relationships and is currently hosting a series of meetings where Meridian's women employees can discuss their career progression and provide feedback.

"The path to a leadership role is not easy and often requires sacrifices," Gilfoy notes. She encourages women to stand up and ask for what they deserve in terms of compensation, as this is a constant topic in her mentoring relationships.

While there are exceptions, such as JPMorgan Chase where three women are among the candidates to succeed the longtime CEO, and the success of women leaders in other financial institutions like the Bank of Canada and the Canada Pension Plan Investment Board, the overall lack of women CEOs in Canadian banking remains a striking reminder of the challenges that persist in achieving gender equity at the highest levels of leadership.

Key Takeaways

• No woman has ever led a Big Six Canadian bank as CEO.
• Women lead less than 5% of publicly traded banks in the U.S. and 4 out of 62 major banks in Europe.
• The number of women bank CEOs in Canada has decreased in the past year.
• Meridian Credit Union focuses on flexibility and mentorship to promote gender equity and female leadership.
• Women make up 30% of CEOs and general managers at Canada's credit unions, higher than Fortune 500 companies.