Female board members in FTSE 100 firms earn significantly less than their male counterparts, shedding light on ongoing gender inequality at the executive level.
- Research by Fox & Partners reveals women in board roles earned, on average, £335,953 last year compared to men’s £1,073,445 – a 69% pay gap.
- Despite a reduction from the previous year’s 70% gap, the disparity remains much larger than the national average of 13.1%, as reported by the Office for National Statistics.
- One major factor for this gap is the predominance of women in non-executive rather than executive roles, which typically offer lower pay.
- There are only nine female CEOs in the FTSE 100, highlighting the underrepresentation of women in top positions.
Research by employment specialists Fox & Partners discloses that female board members of FTSE 100 companies earned £335,953 on average last year, while their male peers garnered £1,073,445. This equates to a gender pay gap of 69%, slightly improved from the 70% gap reported in 2022. Nevertheless, this remains significantly higher than the 13.1% pay gap observed throughout the broader UK labor market, according to the Office for National Statistics in 2024.
Catriona Watt, a partner at Fox & Partners, acknowledged this slight improvement but stressed that there is still considerable progress to be made. The gap is largely attributed to the high concentration of women in non-executive director positions. An overwhelming 91% of female directors occupy these roles, which usually come with fewer responsibilities and lower compensation compared to full-time executive roles. Men are more often found in higher-paying executive roles and senior non-executive positions such as chair.
Among executive directors, the pay gap narrows to 29.8%, with female executives earning an average of £2,332,334 in contrast to £3,150,424 for their male counterparts. In non-executive roles, women receive an average salary of £127,593, whereas men earn £191,381, reflecting a 40% pay gap. This clearly illustrates the persistent disparities within senior positions of the UK’s largest listed companies.
Currently, only nine of the FTSE 100 companies have female chief executives, including known figures like Margherita Della Valle of Vodafone and Dame Emma Walmsley of GSK. Allison Kirkby’s recent appointment as BT’s CEO adds to this small number. Watt pointed out that while companies have improved gender diversity statistics by appointing women to non-executive roles, these figures do not translate into increased representation in more influential, higher-paying positions.
Despite these challenges, progress is visible. The count of female executive directors rose to 43 in 2023 from 39 in the previous year. Continued commitment from leading companies toward investing in female career advancement, mentoring, and creating cultural shifts is vital for significantly impacting the gender pay gap.
Closing the gender pay gap in FTSE 100 companies requires persistent efforts in promoting women to higher-paying executive roles.
