Sexism in the City: The last bastion of prejudice

From the choice of canapés to the guest speakers, BP made a special effort to ensure that their guests felt welcome. For this was not the type of business reception that the oil giant usually hosted at its grand London offices. The event earlier this year was laid on to reassure gay and lesbian recruits they had nothing to fear from being "out" at work.

The firm, a giant in an industry notorious for its macho attitudes and executives, was anxious that the evening be a success. For more than two hours, John Manzoni, BP's highly respected second in command, chatted with staff, telling them how important they were to the success of the company. Notably absent, however, was Lord Browne, then BP's chief executive, who last week stood down over his relationship with his ex-lover, Jeff Chevalier.

His absence from the gathering could, with hindsight, be interpreted as an illustration of his desire to keep his private life private. In the end, he failed and his dramatic outing and resignation this week reinforced concerns that gay employees are prevented from reaching the highest levels of management. The vast majority of those who do keep very quiet about their sexuality.

Despite the introduction in December 2003 of regulations banning discrimination on the grounds of sexual orientation, many senior figures in the Square Mile believe it is still tough to work there and be anything other than white, straight and male.

The Independent on Sunday understands that there are at least two major cases currently in the hands of lawyers where City staff have alleged they were victims of homophobia. One involves a gay man and the other a lesbian.

Among the cases that have already attracted headlines is that of Peter Lewis, a gay former head of global equity trading at HSBC, who claims the bank sacked him because of his sexual preference.

His lawyer, Alison Downie of Bindmans, said the number of potential claims from gay employees was soaring. "While their sexuality is not an issue for a number of their colleagues, there are still homophobic attitudes within particularly financial and City institutions."

One senior financial PR, who acts for some of Britain's biggest companies, is more blunt. "The City is fucked up. It can't accept people who aren't overtly heterosexual."

Alex, a 25-year-old investment banker with a top European firm, is comfortable with his HR department knowing he is gay, but not his immediate boss. "It speaks volumes that I'm not out to my colleagues. If you named me I'd be concerned that it would limit my career in some way."

Iain Corby, a senior manager at Deloitte, one of the big accountancy firms, who is "out", blames employees' reticence to be open about their sexuality on "a lack of visible role models". He points out that of Deloitte's 600 partners in the UK, "I couldn't name a single one who is gay".

With Charles Allen, the former chief executive of ITV, out of the picture, not one boss of Britain's top 100 FTSE companies is openly gay. And the scarcity of big City names in the IoS's Pink List tells its own story.

One notable exception is Ashley Steel who uses her seniority at the accountants KPMG, where she sits on the UK board, to champion diversity issues. "I wish I could give confidence to others like me to speak out," says the 47-year-old, who only came out "very publicly" five years ago when a looming transfer to the US forced the issue because she didn't want to go without her partner, Angie.

Ms Steel's bugbear is that unless people feel comfortable in their own skin at work, they will be unable to achieve their best. "The Square Mile is wasting the talents of gay people," she laments.

However, many big City firms are scrambling to put in place support networks for gay employees in the hope of securing the best recruits.

Ben Summerskill, chief executive of the gay rights organisation Stonewall, said every single investment bank was now in its graduate recruitment guide, which would have been unthinkable 10 years ago. But he admitted a "pink ceiling" still existed. "If you are working in a back office you are much more likely to be supported, but it is different on the trading floors where attitudes are more primitive.

"It can be difficult working for the retail banks, for example, where you can be sent at short notice to a country where homosexuality is outlawed."

A recent survey showed that the number of potential gay or lesbian City recruits has risen to 8.2 per cent of all applicants from 5.9 per cent two years ago, according to the headhunters Joslin Rowe.

Then there are the social networks that are springing up, such as Village Drinks, a London-based group with 4,000 members across the political, financial and legal professional.

Whether such support networks could have saved Lord Browne is a moot point. For now, though, at least he will be able to draw comfort from a show of support yesterday from a clutch of influential figures including Sir Winfried Bischoff, chairman of Citigroup, Sir Evelyn de Rothschild, and Sir Nicholas Serota, director of the Tate Gallery. All spoke out to wish the former BP boss well, "stand by him and look forward to working with him in the years ahead".

City workers who took the big firms on

Homophobia

Peter Lewis claimed £5m for unfair dismissal from HSBC after a colleague alleged he made unwelcome sexual overtures while showering in the gym. Lewis lost the case but has won leave to bring the case again later this year.

Racism

Sid Saeed claimed he was pushed to the brink of suicide by racial and homophobic abuse from his managers and colleagues at Deutsche Bank where he was an executive. Saeed launched a claim but the company settled.

Sexism

Julie Bower, a senior analyst with Schroder Securities, won £1.4m, the largest City compensation payout, after she was described as "had cancer, been a pain, now pregnant". Her bonus of £50,000 was a fraction of those paid to male colleagues.

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