The gender pay gap on UK financial services boards has narrowed from 40% in 2020 to 29% in 2024, according to data from EY.
Its EY global financial services boardroom monitor, which tracked 213 firms, including 18 in the UK, found that this equates to an average pay difference of more than $100,000 (£72,972) per year between male and female non-executive directors on UK financial services boards.
It also found that the gender pay gap has contributed to a 4% decline in overall non-executive pay in the UK since 2020. The UK’s financial services board-level gender pay gap is driven primarily by the banking sector, where it stands at 45%, up 11 percentage points from 34% in 2020.
In contrast, the gender pay gap in insurance fell to just 3% in 2024, down 25 percentage points from 28% in 2020. In wealth and asset management, the gender pay gap declined by 31 percentage points from 52% in 2020 to 21% in 2024.
UK female directors with technology expertise earn, on average, 33% less than their male peers. This gap has narrowed by four percentage points since 2020, which is a larger reduction than in all other European financial services markets, bar Italy.
Martina Keane, financial services leader at EY UK and Ireland, said: “It is encouraging to see UK financial services firms move faster than their transatlantic peers to narrow the board-level gender pay gap. Concerted, proactive efforts are needed to sustain and build on the progress that’s been made, but the pace must pick up. Faster progress to gender pay equality in financial services will better ensure the best global talent is attracted, retained and leveraged to promote industry and economic growth.
“As more women join finance boards in the UK, overall pay for non-executive directors is falling, even amid inflation, unlike the upward compensation trend seen in competitor markets. Financial services chairs should look to review representation and renumeration policies in tandem to ensure they are equitable, fair, and globally competitive.”
