Research reveals a significant gender pay gap among board members of FTSE 100 companies, with women earning considerably less than men.
- In 2023, female board directors earned an average of £335,953 compared to £1,073,445 for their male counterparts, as per Fox & Partners.
- A major factor in this disparity is the prevalence of women in lower-paid non-executive roles, with 91% of female directors occupying such positions.
- The pay gap among executive directors remains, with women earning 29.8% less than men in equivalent roles.
- Despite some progress, with nine female CEOs in FTSE 100 firms, women are still underrepresented in top positions.
Research conducted by Fox & Partners indicates a substantial gender pay gap among FTSE 100 company board members, highlighting a critical issue in corporate diversity. In 2023, female directors earned £335,953 on average, in stark contrast to £1,073,445 earned by their male counterparts. Although there has been a minor improvement from a 70% gap in the previous year to a 69% gap, the difference remains alarmingly greater than the 13.1% gap observed across the broader UK labour market in April 2024.
Catriona Watt, a partner at Fox & Partners, acknowledged the slight improvement but stressed the long journey ahead to achieve gender pay parity. A significant contributor to this discrepancy is the concentration of women in non-executive roles. Typically, these roles involve less responsibility and are compensated less than executive positions. The data shows that 91% of female directors occupy non-executive positions, contrasted with men, who are more commonly appointed to lucrative executive roles or senior non-executive roles such as chair.
The pay gap persists even among executive directors. Female executives earn an average of £2,332,334, while their male peers earn £3,150,424, marking a 29.8% difference. In non-executive roles, women earn £127,593 compared to men’s £191,381, a gap of 40%. The underrepresentation of women in FTSE 100’s senior positions is evident, with only nine companies led by female CEOs. Notable female leaders include Margherita Della Valle at Vodafone and Dame Emma Walmsley at GSK.
The trend of appointing women to non-executive positions has, in part, masked the true extent of gender disparity in senior corporate roles, observed Watt. While there has been a positive shift, with the number of female executive directors increasing to 43 in 2023 from 39 the previous year, the issue of equitable pay and representation remains pressing. Fox & Partners emphasise the need for UK companies to foster female professional growth, provide mentorship, and drive cultural changes to mitigate the pay gap effectively.
Despite some progress, closing the gender pay gap among FTSE 100 board members remains a challenging and ongoing endeavour.
