Should we care EY's new leader shortlist is dominated by women?
The accounting industry has long been criticized for its lack of gender diversity, particularly at the senior leadership level. However, a recent development at EY, one of the Big Four accounting firms, has sparked renewed interest in this issue.
EY has assembled a female-dominated shortlist for the position of UK and Ireland managing partner, raising the possibility of a woman being appointed to the firm’s top British executive role for the first time.
According to reports, the three candidates shortlisted for the position are Anna Anthony, the firm’s managing partner for UK financial services; Kath Barrow, the UK and Ireland assurance managing partner; and Stuart Gregory, the UK and Ireland managing partner for finance and transformation. This marks a significant shift in the traditionally male-dominated leadership of the accounting profession.
The accounting industry has struggled with gender diversity for decades, with women often facing barriers to career advancement and underrepresentation in senior roles. In the UK, the latest data from the Accountancy Age 50+50 survey reveals that only one firm within the top 100 accounting firms has a higher percentage of female partners than male. This highlights the persistent challenge of achieving gender parity in the industry.
The dominance of women on EY’s shortlist for the UK and Ireland managing partner position is noteworthy for several reasons. Firstly, it signals a potential shift in the industry’s leadership landscape, with the possibility of a woman breaking through the glass ceiling and assuming a top leadership role. This could have far-reaching implications for the perception of women’s abilities and opportunities within the accounting profession.
The news of EY’s female-dominated shortlist has generated significant interest and discussion within the industry. Some have hailed it as a positive step towards greater gender diversity, while others have questioned whether it is a genuine commitment to inclusion or simply a symbolic gesture. Regardless of the opinions, the appointment of a woman to the UK and Ireland managing partner role at EY would be a significant milestone and could inspire other firms to follow suit.
The underrepresentation of women in senior accounting roles is not a new phenomenon. Factors such as unconscious bias, lack of mentorship and sponsorship, and work-life balance challenges have all contributed to the gender imbalance. Firms have attempted to address these issues through initiatives like mentorship programs, flexible work arrangements, and diversity and inclusion initiatives, but progress has been slow.
In recent years, many accounting firms have made concerted efforts to improve gender diversity and inclusion within their organizations. For example, PwC has been working to close the gender pay gap, while Deloitte and KPMG have set specific targets for increasing the representation of women in leadership roles. These efforts, coupled with the potential appointment of a female leader at EY, could signal a broader shift in the industry’s commitment to diversity and inclusion.
The Big Four accounting firms, which include EY, PwC, Deloitte, and KPMG, have historically been male-dominated at the top. While some progress has been made, with the appointment of female leaders in certain member firms, the global leadership of these firms has remained predominantly male. The selection of a woman as EY’s UK and Ireland managing partner could be a significant step towards greater gender diversity at the highest levels of the Big Four.
The appointment of a woman to a senior leadership role in a major accounting firm like EY could have a profound impact on the industry. It could inspire younger women to pursue careers in accounting, challenge stereotypes, and demonstrate that women can thrive in the highest echelons of the profession. This, in turn, could lead to a more diverse and inclusive industry, better equipped to serve the needs of a diverse client base.