LONDON—Bonuses for top U.K. finance executives should be linked to how many women their institutions employ in senior positions, a review commissioned by the British government said Wednesday.

The review was announced in July by the U.K. government as part of a wider plan to boost productivity in the U.K. economy. Jayne-Anne Gadhia, chief executive of U.K. bank Virgin Money, was asked to come up with ideas to increase the representation of women in top roles in finance.

As...