The Pensions Trust did not see a bump in engagement in its latest round of trustee elections despite adding online voting, following a controversial decision to take names off the ballot to avoid “unconscious bias” towards male candidates.
The changes did see one new female trustee elected alongside two male candidates, while a further two trustees were re-elected. It is currently investigating the turnout, with a less engaged auto-enrolment population a possible factor.
The diversity challenge is clear and present for the industry. A sample by consultancy TDC of 50 small defined benefit schemes found 33 had no female trustees at all, and 84 per cent of all trustees were male.
TPT sent out 250,000 voting forms this year, compared with 150,000 at its last ballot. “The turnout was disappointing,” said chair Sarah Smart. TPT clarified later that turnout was similar to previous elections, to which Smart added: “The turnout being consistent with previous years, given the other factors involved, means to me that the anonymised voting did not appear to materially reduce the number of members voting and I would therefore like to continue it in future years.”
The multi-employer pension scheme decided to anonymise its candidate profiles, providing instead an overview of their background and skills, a decision which divided the trustee board.
Smart said the fund could have “taken the time to tell the membership why we were doing what we were doing”, and will learn any lessons from the experience ahead of the next election in two years’ time.
Mark Hodgkinson, a director at Muse Advisory, said he applauded the trust for trying to address this issue, but thought the transparency of an election could be damaged by taking away the candidate’s names. “I would feel uneasy if I was the member of a scheme and that process was adopted,” he added.
The most important balance on governance, he said, was “to have the right skills and experience around the board to be able to do a great job”.
Kim Nash, a client director at independent trustee company PTL, said: “For half the boards I sit on I am the only female trustee.” For employer-nominated candidates, culture is crucial, she said. “This can typically be a male-dominated environment and potentially off-putting to any female candidates. Senior management have a role to play with encouraging female staff to apply.”
MNT elections often face a bigger problem in a lack of applicants in general. But to encourage women specifically, Nash said communications should “make sure it is clear that all candidates will be considered equally.”
“The process by which MNTs are appointed can also be looked at,” she added. “A ballot process may not be attractive to potential female trustees and an interview process may be less daunting.”
Yasmine Chinwala, partner at capital markets think tank New Financial, which has conducted research into the gender balance in financial services, said “measurable” goals on diversity with deadlines were crucial to progress. She added: “It is very important that companies are open to trying new ideas.”
