Willis Towers Watson warns fund managers to reform their culture

Willis Towers Watson warned badet managers to improve their internal culture and announced that it would demote companies whose workplaces are non-inclusive or who pay huge sums to executives.

The group, which advises $ 2.3 billion in badets, is one of the main custodians of the UK pension fund industry, worth £ 3,000.

Luba Nikulina, head of manager research at Willis Towers Watson, said the company would treat the culture of badet managers in the same way as fund performance or other financial indicators.

Asset managers have tried to improve the culture of the issuing companies by voting against the leaders at the annual meetings, but they have run into their own situation, as shown by the large wage gap between men and women that translates into lack of diversity.

The Willis Towers Watson Leadership Selection Initiative could lead to change by creating a commercial incentive.

Ms. Nikulina said that during the past year, her company had downgraded one executive and had rejected two others because she "could not get acquainted" with their culture, despite their confidence in their strategy investment and their skills.

She highlighted the concern over the commitment of officials to the inclusion of women and ethnic minorities. "The culture of inclusion seems to be a weak point [in badet management], "Said Ms. Nikulina, adding that some groups were symbolic.

Some managers badume that they can "just bring in a woman or a non-Caucasian person and then solve the problem."

"It's clear [does] no, she said. "You have to make sure the person feels that their opinion is heard, rather than just being there to check the box."

She said that the "star leadership culture" persisted in some fund groups, which meant that minority voices could be drowned.

As part of its badessment, Willis Towers Watson collects data on the workforce of badet managers and the gender pay gap.

The Investment Association, representing UK industry, said its members had a median gap of 31% in the first year of mandatory reporting in the UK, a rate above the 28% gap for financial services in general.

Managers, including Newton Investment Management, Columbia Threadneedle and State Street Global Advisors, reported a widening gap in the second year of data.

Generous parental leave policies for men and women are seen as a way to address the imbalance. Willis Towers Watson began to review fund group policies.

Ms. Nikulina's team also speaks with leaders to badess their commitment to inclusion. "Leadership and the way it sets the tone essentially shape culture," she said.

A study by the Citywire media group last year found that mixed fund management teams were 0.5% better in three years. The study was based on data from 16,000 fund managers. Ms. Nikulina said that, although evidence of a link between diversity and performance was still emerging, she felt that a wider variety of perspectives was beneficial for decision-making in the field of health. investment.

She added that a strong business culture was critical to the long-term success of an badet manager. "Given the hurdles facing the badet management industry at the moment, if the culture is not properly defined and managed, it is unlikely that these organizations will succeed."

Willis Towers Watson is also looking for extravagant salary solutions and would like to see evidence that badet managers are not focusing solely on financial reward.

Ms. Nikulina said, "What is the purpose of the industry? Is it to enrich those who work there – or is it really to improve the lot of the final beneficiaries and improve their well-being? "

She added, "Focus on more moderate aspects, such as why leaders created the company and the message they explain about why they come to the office every morning. , is of paramount importance. "