The Role of Women in Finance (Essay Sample)

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Role of Women in the Finance Industry
Women have played and continue to play a pivotal role in society. They give birth to us and they work to provide for us. They have careers and they can sacrifice everything for the well-being of their families. This research paper seeks to identify the role that women play in the finance industry.
The finance industry is multifaceted and it offers an array of opportunities for professionals with different skills and abilities. This industry contains sub industries to cater for these skills. The common career paths that professionals follow in this industry include corporate finance, commercial banking, investment banking, hedge funds, private equity, public accounting, insurance, venture capital, and financial planning among others. Corporate finance generally entails working in a company and being in charge of sourcing and managing the finances and capital of that company (Kochanek).A career in commercial banking entails opening bank accounts for clients, managing these bank accounts and processing loans for clients. Investment banking involves trading in and making corporate securities available to investors. A career in the Hedge Fund sub industry involves managing and trading hedge funds. Managers of hedge funds are in control of a wide array of financial products and assets. Venture capitalists assist small firms to grow by providing them with financial advice as well as capital for investment. On the other hand, private equity professionals provide already established firms with capital for expansion or operations. Financial planners assist individuals to come up with financial goals and plans to help them secure their financial stability both in the present and in the future. Careers in the insurance business entail providing security for business and individuals against potential risks. Public accounting is a broad field, which mainly involves making records of transactions in books of accounts to help companies keep track of their finances (Kochanek).
This brings us to the question, "Is there any difference between men and women in the finance industry? Do they all perform equally?”
The progress of women in the finance industry has had its share of difficulties. In the past, married women often left formal jobs to their spouses in favor of more immediate duties and responsibilities in the home. Women have also been subject to authoritarian spouse control and domestic violence (UNESCO Institute of Education 19). Today, however, in light of the worsening economic times, more and more women are taking up formal jobs to try to bridge the income gap left by their spouses (Shapiro, Ingols, and Blake-Beard 314). Women have gone on to match and even outmatched men in the financial world. Beth Mooney, the Chairman and Chief Executive Officer at KeyCorp, is a case in point (O’Daniel).
In an interview with Jenna Goudreau of Forbes Magazine, Mooney explains how she made her way up the corporate ladder. She graduated from the University of Texas with a degree in History. She began working as a bank secretary earning $10,000 per year, a job whose only qualification was the ability to type. However, she was convinced that she deserved a better job and she went round all big banks in downtown Dallas demanding acceptance into the banks’ management training programs (Goudreau). Her determination soon paid off and she got a job at the Bank of Dallas. She shifted jobs 9 times in 16 years. She entered KeyCorp and occupied the position of vice chair. Her immediate responsibility was planning and implementing a community banking strategy for KeyCorp. Her performance on the task was exemplary and this led to the board tapping her as the Chief Executive Officer. This made her the first lady Chief Executive Officer of a top-20 bank in the United States. Other accolades that she has received include being named fifth among America’s top ten banking CEOs and receiving a Distinguished Alumnus Award from the Cox School of Business (Bloomberg).
Statistics from the Bureau of Labor on full-time all-year-round employees show that women on average receive almost 20% less pay than men (Eddins).The chances of women interrupting their careers or working part-time in order to attend to their families are also very high. Such women face many difficulties in re-entering their careers. Married women are more vulnerable as compared to married men in events like the death of the spouse or divorce.
A survey carried out on the progress of women in the past 10 years in the financial industry and their ability to advance in the industry presented mixed views (Tysiac). The survey interviewed 2100 respondents in 20 of the biggest U.S. markets (Tysiac). Fifty-three percent of the Chief Financial Officers interviewed said that there had been no change in the ability of women to advance in careers in the finance industry in the past 10 years. However, 42% of the Chief Financial Officers noted that women’s ability to progress in the finance industry had improved compared to 10 years ago. Only four percent of the respondents claimed that women’s ability to progress in the finance industry had decreased as compared to 10 years ago. According to Paul McDonald (qtd. in Tysiac), the senior executive director at Robert Half, companies should strive to encourage female promotions in financing and accounting professionals. Companies’ priority should be to attract and retain top talent and to offer balanced work/life programs to its staff as incentives for members of staff with children.
Research carried out by the American Institute of Certified Public Accountants (AICPA) in 2012 points to women under-representation in top levels of management in accounting firms. Despite the fact that 44% of accounting professionals in Certified Public Accountancy firms being women, only 19% of the partners in these firms are women compared to 21% in 2011.
A report by the Women’s Initiative Executive Committee of the American Institute of Certified Public Accountants chaired by Mary Bennett made the following recommendations to employers in order to improve women advancement in finance and accounting (Tysiac):
* Associating women’s initiatives with the company’s strategy and goals
* Getting support of top level leaders in women initiatives
* Including women’s initiatives progress in the leadership accountability goals of the company
* Increasing awareness concerning success factors and barriers within the company
According to Bennett (qtd. in Tysiac), the rate of entry of men and women in the accounting field has been equal in the past 25 years. However, women’s advancement in this field has lagged behind men’s advancement. Men have secured more leadership roles compared to women.
Women have struggled to gain recognition and advance in the finance industry. Many women, such as Beth Mooney, have reached the highest echelons in the finance industry. However, a lot more women are still stagnant in the lower levels of management. Changing this situation will require widespread sensitization as recommended by Marry Bennett (qtd. in Tysiac). Women should also be more aggressive in seeking jobs and management positions in the finance industry. With time, stories like Mary Bennett’s will be the order of the day.
Works Cited
Bloomberg. "Beth E. Mooney." Bloomberg Business Week. Bloomberg, n.d. Web. 31 Mar. 2014. .
Eddins, Erin. "Women Have Special Financial Planning Considerations." The Herald Business Journal (2013): n. pag. 16 Aug. 2013. Web. 17 Mar. 2014. .
Goudreau, Jenna. "From Secretary To CEO: Beth Mooney Makes Banking History." Forbes. Forbes, 6 Sept. 2011. Web. 17 Mar. 2014. .
Kochanek, David. "Financial Career Options For Professionals." Investopedia. Investopedia, 9 Mar. 2013. Web. 17 Mar. 2014. < /articles/financial-careers/08/financial-career-options-professionals.asp>.
O'Daniel, Adam. "Who Are the Most Powerful Women at Bank of America and Wells Fargo?" Charlotte Business Journal. Charlotte Business Journal, 19 Sept. 2013. Web. 17 Mar. 2014. .
Shapiro, M., C. Ingols, and S. Blake-Beard. "Confronting Career Double Binds: Implications for Women, Organizations, and Career Practitioners." Journal of Career Development 34.3 (2008): 309-33. Web. 31 Mar. 2014. .
Tisiac, Ken. "Survey Shows Mixed Report on Progress for Women in Finance Careers." Journal of Accountancy 32.1 (2013): n. pag. 15 Oct. 2013. Web. 17 Mar. 2014. .
UNESCO Institute for Education. Women, Education and Empowerment: Pathway Towards Autonomy. Ed. Carolyn Medel-Anonuevo. Hamburg: UNESCO, 1993. Print.
MAPS
Mode
The mode for this assignment is a research paper. The similarity between this mode and the modes in the previous two papers is the same audience: first-year female students considering a career in finance. However, this mode is different from the other two in that it has a more formal approach. This paper emphasizes on first-hand information through interviews and credible sources like peer-reviewed journals. However, the flow and tone is in such a way that it maintains the audience’s interest in the subject matter.
As part of my sources, I have included two books, three journals, a website and an interview of Mary Bennett carried out by Jenna Goudreau. However, I have not obtained carried out any direct interviews.
Audience
My audience is first year students considering a career in finance. I intend to make my writing interesting and attractive to my audience by having good flow in my research paper. I will also use an example of one successful woman to make the paper more interesting as well as real life statistics to explain my...