Female colleague at RBS was expected to sleep with male superior, says Virgin Money boss

Virgin Money boss Jayne-Anne Gadhia has told a committee of MPs that during her time at Royal Bank of Scotland she was approached by a female colleague who had been told she would be expected to sleep with her male superior in order for her career to progress.

Speaking before Parliament’s Treasury Select Committee as part of its inquiry into women in finance, the Edinburgh-based executive, who was at the now 73 per cent state-owned RBS from 2001 to 2007, described the “very male culture” in financial services where sexism was “pervasive” as she recounted her experience at the lender.

The committee is looking at the barriers for women in financial services and the value of greater gender balance.

Mrs Gadhia, who is a government champion for women in finance, told the Treasury Committee there had been a “very male culture” at RBS which was “win-lose”.

Her time at RBS spanned the era of hubristic avarice enforced by disgraced former chief Fred Goodwin which ended in the bank’s near collapse during the financial crisis of 2008 and 2009.

“Undoubtedly there was a pervading sexism where I remember a very senior woman being very upset one day telling me that she was expected to sleep with her boss,” she said.

“That sort of thing of course means that there are issues for women in progressing through financial services,” she added.

Responding to her comments, a spokesman for RBS said: “These allegations are shocking and are clearly unacceptable no matter how historical they may be.

“We actively encourage anyone who has experienced inappropriate behaviour to come forward so we can investigate.

“We also have a whistle blower facility where members of staff can talk in confidence.”

Mrs Gadhia also recounted a first hand account of when she was rebuffed from a promotion in 1994 at the insurer Norwich Union, now Aviva.

“I was told by a very senior person at Norwich Union then, you have not got the characteristics necessary to lead a sales force,” she told MPs.

“And I said, what’s that? He said the two things you’re missing are a thick skin and a load of bull.”

While Mrs Gadhia did not consider the remark to be sexist at the time, she said: “There was a definite alpha-maleness about that which I’ve never forgotten.”

Aviva’s director of inclusion, Jan Gooding, said the firm had “come a long way and learned a lot in the last 20 plus years”, adding that it has “zero tolerance for any sexist behaviour”.

Mrs Gadhia’s testimony also saw her contrast her previous experiences with the culture she has encountered at current employers, Virgin.

She said that Richard Branson’s operation have “always been very focused on equality, not just gender equality, but ethnic diversity, too”.

She explained: “I think that has led to a healthy and vibrant culture within the companies and success for the companies.

“Having worked for Virgin I haven’t experienced anything other than support for the equality agenda.

Mrs Gadhia is the government’s Women in Finance champion and has spearheaded a review into gender equality which has resulted in more than 140 financial companies signing up to the Women in Finance charter.

However, she said there were still prominent companies - including two investment banks - that had failed to put their names to the Government-backed charter.

The most controversial aspect of the charter has been the decision to link diversity targets to bonuses, Ms Gadhia said, a move she defended by saying it provided a clear signal to boards that female equality was a business issue.