Women directors of the UK’s top companies are being paid average of 73% less than their male counterparts, a new study has found.
Research from New Street Consulting Group found the average pay for FTSE100 women directors is £237,000 whereas for men it stands at £875,900.
The group also found women executives earn £1.5m on average, compared with an average of £2.5m for men in the same role.
These gaps are mainly due to the fact 91% of women directors at FTSE100 companies are non-executive directors (NEDs), the research said.
Back in March Fox & Partners conducted similar research on FTSE350 companies, finding a 66% gender pay gap at FTSE-350 financial services firms remains because of the tendency to appoint women to lower-paid NED roles.
Catriona Watt, partner at Fox & Partners, said: “In order to see long term change, firms must be committed to taking steps that will lead to more women progressing through the ranks, getting into senior executive positions and closing the pay gap.”
This latest research at FTSE100 companies shows the same issues exist.
Action is starting to be taken, with investment firms beginning to vote against company boards lacking diversity, and the Financial Conduct Authority considering requiring listed companies to have at least two diverse directors. But more will need to happen to close these gaps.
“Most businesses want to end the old boys club that exists at the top,” said Claire Carter, director in the interim management team at New Street Consulting Group.
“The key to doing that will be ensuring that women have more executive responsibilities and are trained and prepared properly for taking on that responsibility. Allocating them with the right assignments and projects is essential to that process.”