An evident gender pay gap persists among FTSE 100 board members, despite slight improvements.
- Female board members earn an average of £335,953, significantly less than male counterparts’ £1,073,445.
- The gender pay gap in the broader UK labor market is notably narrower at 13.1%.
- Women predominantly occupy non-executive director roles, impacting earnings potential.
- A promising rise in female executive directors suggests gradual progress.
The gender pay gap among female FTSE 100 board members remains stark, with earnings averaging £335,953 compared to £1,073,445 for men. This marks only a slight improvement from a previous 70% gap, revealing persistent inequalities in pay structures. Despite a broader UK labor market gap of just 13.1%, the disparity in board roles highlights ongoing challenges.
A significant factor in this gap is the predominance of women in non-executive director positions. Research indicates that 91% of female directors occupy these roles, which tend to offer lower pay and less responsibility compared to executive roles. In contrast, men frequently secure higher-paying executive and senior non-executive positions such as chair, affecting the overall pay gap.
Women in executive director positions earn an average of £2,332,334, while their male counterparts receive £3,150,424, presenting a 29.8% pay gap. In non-executive roles, women earn £127,593 versus the £191,381 earned by men, demonstrating a 40% discrepancy. These figures underscore the need for increased female representation in top executive roles to bridge the gap.
Currently, only nine FTSE 100 companies have female chief executives, including notable figures like Margherita Della Valle at Vodafone and Dame Emma Walmsley at GSK. Allison Kirkby’s recent appointment as the chief executive at BT marks a step towards greater representation, yet highlights the limited number achieving such positions.
Encouragingly, the count of female executive directors has increased, rising from 39 to 43 over the past year. This indicates a positive trend, although there is pressing need for UK companies to foster female leadership through initiatives such as opportunity promotion, mentoring, and cultural transformation.
Though progress is evident, significant work remains to close the gender pay gap in FTSE 100 boardrooms.
