Diversity, inclusion and equity prioritized in asset manager succession plans

Terrence Murphy, CEO of ClearBridge Investments LLC, a $157 billion equity manager in New York, said in an email that his company benefits from different employee experiences and perspectives, which makes DEI “essential.” to the success of the organization. ClearBridge has begun seeking candidates through more diverse channels, including recruiters and pipeline programs, and it is revamping its summer internship program to ensure cohorts are more diverse.

The asset manager also works to ensure that when someone joins the business, they want to stay.

“We are proud of the low employee turnover rate, which means the demographics of our employee base will evolve at a measured pace with our increased diversity recruitment efforts,” Murphy said. As of January 2021, 78% of hires at Clearbridge were diverse, based on gender or ethnicity. Women accounted for 43% of overall hires and 33% of investment professional hires over the past three years.

Baillie Gifford, the $365 billion Edinburgh-based chief growth officer, has embraced diversity and inclusion factors in its recruitment and succession planning as it will position the business for long-term success, said Andrew Telfer, CEO and Joint Senior Partner of the firm. It is already recording good results: the majority of new partners this year were women.

By comparing, a Deloitte report last year found that in 2021, women held 24% of leadership positions in financial services and that this percentage is expected to rise to 28% by 2030.

About half of all entry-level positions in asset management are held by women, but white men hold a disproportionate percentage of vice president, senior vice president, and C-suite positions, according to a 2021 study by McKinsey & Co.

“All companies should think about this. If there’s a company that isn’t, then they’re most likely being left behind,” said Dominica Ribeiro, director of marketing and distribution at Breckinridge Capital Advisors in Boston. , worth $41 billion, about DEI. and succession planning.