Women on FTSE 100 boards earn significantly less than their male counterparts, despite a slight improvement in the gender pay gap.
- Female directors earn an average salary that is 69% lower than male directors, a reduction from a 70% gap recorded in the previous year.
- The disparity is largely due to the high concentration of women in lower-paid non-executive roles compared to men in high-paying executive positions.
- There are only nine female chief executives among the FTSE 100 companies, highlighting the underrepresentation of women in senior roles.
- Progress is being seen with a slight increase in the number of female executive directors and initiatives to support women’s advancement in business.
Research by Fox & Partners reveals a significant pay disparity among FTSE 100 board members, with female directors earning an average of £335,953 last year, contrasted with £1,073,445 for their male counterparts. This slight narrowing from a 70% gap in 2022 still shows women’s earnings falling drastically behind men’s.
A key reason for this disparity is that 91% of female directors are in non-executive roles, which offer less responsibility and compensation compared to full-time executive positions typically held by men. In these roles, women earn £127,593 on average, whereas men earn £191,381, resulting in a 40% pay gap.
The gap is also evident among executive directors, where women earn an average of £2,332,334 compared to men’s £3,150,424, meaning women earn about 29.8% less. This illustrates the broader issue of gender pay imbalance within the UK’s top companies.
Currently, only nine of the FTSE 100 companies have female chief executives. Notable figures like Margherita Della Valle of Vodafone and Dame Emma Walmsley of GSK highlight the rarity of women in these top positions, signalling a significant gender disparity in leadership roles.
Despite these challenges, there are positive developments. The number of female executive directors increased from 39 in the previous year to 43 in 2023, showing incremental progress. It’s encouraged that companies continue efforts to mentor women and promote cultural changes towards gender equality, as emphasised by Catriona Watt of Fox & Partners.
While progress is evident, significant efforts are required to bridge the gender pay gap and support women in achieving equal roles and salaries in top-level positions.
