Are women better investors than men? A question that is interesting, provocative and controversial in equal measures. There are even more interesting aspects to this them to follow especially given the fnancial company referenced - read on.
This statement is taken from a Financial Times article penned on 6th September 2020 and is attributed therein to David Kostin, Goldman Sachs’ chief US equity strategist.
The question that really has to be asked here then, particularly of Goldman Sachs, from mainstream reporting in March 2018 and repeated again in March 2019 on the results of their own gender-gap annual reporting just why if they clearly recognise that women are better investors than men is Goldman Sachs Group Inc. “paying women in the U.K. an average of 50.6 percent less than male colleagues per hour”?
For year-end bonuses the gender gap is much wider at 66.7% in favour of men who also take home much bigger bonuses than women at Goldman Sachs.
Given that women investors, at Goldman Sachs at least, are seen to be surpassing their male counterpart’s investment performance why is their pay not also at least equal to the men’s, or even exceeding it, to reflect their true value to the company?
Perhaps someone from GS can advise why they are not putting their money where their mouth is.
On a more personal level whist I have left the corporate life and enjoy moderate success working for myself now, my partner remains a highly qualified arbitrage specialist with a major international investment finance company - no names here! When it comes to who is the ‘better investor’, to be honest I would credit her at being ahead of me, just.
What is more significant to this discussion here is that I am also aware that in her workplace, whilst she outperforms many of her colleagues (and seniors), there is still not an equitable cross gender pay structure in place.