Female directors at the UK’s largest monetary services companies make usually two-thirds less than their male counterparts, brand-new research study programs, underlining the pay gap that still exists between males and females at the greatest levels in the monetary sector.
Average spend for female directors at financial services companies stands at ₤ 247,100, 66% lower than the average ₤ 722,300 paid to male directors, according to research study by employment and partnership law practice Fox & Partners.
The considerable gender pay gap at companies noted on the FTSE 100 and 250 stock indices suggests there has been slow development in recruiting women to more senior, higher-paid executive positions.
The vast bulk (86%) of the female company directors inhabit non-executive roles, according to the research, which tend to be lower paid than executive positions, and include less day-to-day obligation for running business.
The revelations come just days after the final report in the government-backed Hampton-Alexander review into female representation in company showed that women now hold more than a third of roles in the boardrooms of Britain’s top 350 companies.
However, males still dominate the highest levels of business, and the evaluation fell somewhat short of its second significant target of reaching 33% representation of women on FTSE 350 leadership teams, consisting of positions on executive committees.
The Fox & Partners research study highlights that companies are willing to give non-executive roles to women to enhance board diversity, but are not selecting them to better-remunerated management positions, which likewise apply more impact within the business.
“Boards need to be open up to challenging themselves by asking sincere questions about the barriers in their organisation that may avoid females reaching the really leading,” stated Catriona Watt, a partner at Fox & Partners.
“To see long-lasting change, companies need to be committed to taking actions that will lead to more ladies progressing through the ranks, entering into senior executive positions and closing the pay gap,” she said.
One method for firms to promote change would be by signing up to the government’s ladies in finance charter, under which business promise to promote gender diversity by setting internal targets for this in senior management and publishing annual development reports on the variety of females in management functions.