Why Are So Few Women In High Finance?
- Jonathan Quek
- May 1
- 5 min read
Why do women continue to be underrepresented in high finance when many other career paths have gotten more egalitarian?
I was recently watching ‘American Psycho’ – a dark satirical film that delves into the greedy and superficial nature of certain Wall Street individuals. It is a fantastic movie whose success can be largely attributed to Christian Bale’s phenomenal display of the maniacal character ‘Patrick Bateman’. One of the less discussed topics about this movie, and one that I initially failed to notice, is the gender diversity among characters. Most of the senior roles portrayed in the film were cast by male actors. The appearances of women, on the other hand, were largely confined to secondary roles such as secretaries and call girls.
Don’t get me wrong, I still loved this movie, regardless of this fact. I believe that this movie was simply a reflection of the high finance culture at the time – an industry disproportionately dominated by one gender. Fast forward 24 years since the film’s initial release and little has changed. While many career paths have become more egalitarian, female representation in senior roles inside financial institutions remains at a measly 24%.
So why is this the case? Why is it that finance continues to be one of the most polarised fields out there? Is it the result of discrimination by a patriarchal system or do women simply prefer other career paths?
It is important to note that by high finance, I am referring not to corporate finance (financial planning, insurance etc), but to investment banking, private capital, private equity, venture capital, hedge funds etc
As I was researching this issue, I came across various articles and publications that more or less came to the same conclusion: lack of role models, societal expectations, long working hours, toxic culture, and discrimination were responsible for this gender divide. While these answers are not wrong per se, it was missing something. It was missing an element of humanity that I believe cannot be captured by facts and statistics alone.
I contemplated distilling my research into this writing, but I figured it would most likely end up looking like a Chat-GPT response, dry and dull. So instead, I shall try to answer this question with a story…
By the way, if you are more interested in the raw facts, I have listed some of the articles and publications below as reference.
Ever since she started college, Donna has dreamt of making a name for herself at a bulge bracket (BB) investment firm. Now, at the age of 30, the firm is finally considering her for vice presidency. It would be a huge step up from the mediocre associate position she’s been sitting on for the past 3.5 years. She recalls that back in sophomore year, her best friend, Clara, had made a pact with her: to become vice presidents at the same boutique firm! Both of them were highly driven, ambitious, and perhaps even a little conniving. You sort of have to be. They were going to be the proof that women can succeed anywhere, even in a male-centric field like finance.
She stares at the time on her monitor screen, ‘23:56’. It’s one of those days… A German bank had called them up earlier this week, Frederick was his name, or was it Felix? She can’t remember, not that it matters to her. They are planning a hostile takeover of a smaller bank in Amsterdam and need immediate help underwriting the deal. Donna thinks about calling her friend – the same friend she had made a pact with back in college – but she figures otherwise. After all, Clara was probably winding down with her husband, or tucking her kids to bed, or perhaps she was already sound asleep. Who knows?
After college, Donna and Clara both secured analyst positions at one of the largest investment banks in America, fulfilling their promise to each other. Days were long. Long is fine, when the people around you are kind and compassionate, as is the case in most corporate jobs. Not here though, and especially not when you are a woman. It is one thing to have the sugar-and-spice label pasted on your back, and another to be at the receiving end of sexual innuendos and advances from managing directors with conjugal disagreements.
After 2 years as an analyst, Clara left. She had just gotten engaged to her fiance. She never thought about having kids, or picking an easier job, but the prospect seemed more and more enticing every time she strolled through the hellish gates into work. The subtle jokes, the exclusion, the feeling that she was trapped in a world that sought to undermine all her efforts. She had enough. She called Donna one morning and has never looked back since.
It has been 4 years since that day, and Donna was beginning to feel the same internal conflict her best friend had. ‘02:00’ — her eyes water in a desperate attempt to ease the burning sensation; her fingers lose sensation as her body begins to alienate it. She checks her phone and finds a voice message left by her boyfriend, Allen. “Donna… are you coming home? I know you are busy, but it’s a Friday night… And you promised. You promised that after last week you would be free this week. Look, Donna, we have to talk, call me back.”
Donna knows exactly what he means — She has been putting off marriage in fear that her bosses will think the increased commitment will make her less dedicated to her job. She is so close to vice presidency and just can’t risk it. Allen is justifiably upset about this, she has promised him they will get married ever since they became a couple on the eve of Christmas 2 years back. She is at a crossroads, and both paths seem plagued with spikes and thorns. She fears the worst, that Allen will leave her. He has been her pillar of support ever since Clara left, without him, she will be all alone again.
What makes it worse is that all her male colleagues are starting families, of course, their wives take up the majority of the caregiving role, a luxury Donna didn’t have. She stares at the red stamped envelope lying on the right corner of her messy desk. It’s a job offer — to be a journalist for a local small-town publisher — something Donna had wanted to do before enrolling in college. She stares at it, and feels it stare back at her, its mesmerizing gaze beckoning to relieve her of her suffering. She feels her arm stretching out towards it against the will of her body, but she no longer fights it… it’s time to go home.
Yes, the story of Donna is fictional, but it is based on true interactions and stories from people around me. If stories aren’t your thing and you are more interested in the raw facts, I have listed some articles down below for reference.
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