91% of female board roles are non-executive
New research reveals the gender pay gap for FTSE 100 board directors narrowed in 2022 but remains markedly high, with the average pay for women directors (£309,000) 70% less than the average pay for male board directors (£1.04m).
The data from Fox & Partners, the employment and partnership law specialists, shows that the FTSE 100 gender pay gap narrowed in the last year from 74% as pay for women directors accelerated faster than men last year. Average female board director pay increased by 26% in 2022 to £308,984 from £245,525 in 2021 and average male director pay increased by 11% to £1.04m in 2022 from £935,235 in 2021.
Only 9% of female board roles are the higher-paid and typically more influential executive roles. Of the 426 female directors at FTSE 100 companies, 91% were in a non-executive role which typically carries less day-to-day authority. Women executive directors were paid more than 20 times (£2.4m) the average amount paid to female non-executive directors (£118,738). The average pay of male executive directors (£3.3m) was more than 18 times that of male non-executives (£179,892).
Men are paid significantly more than women both for executive and non-executive roles. On average, male non-executives (£179,892) were paid 52% more than females (£118,738) — partly because they have a higher share of more senior non-exec roles such as “Chairman”. Male executives (£3.3m) were paid 38% more than female executives (£2.4m).
Catriona Watt, Partner at Fox & Partners said: “While the latest data shows improvement, there remains a yawning gap in director pay between the genders. For significant change to occur, businesses need to continue investing in programmes that prepare women for the most senior executive positions, for example by ensuring that they have access to projects that bolster their experience and address any potential gaps, as well as being transparent about requirements for promotions and progression.
“Companies should think about the culture they want to foster from a diversity and inclusion perspective, ensure messages in support of that culture come from the top and review internal policies – including family and flexible working related policies – to ensure they support the culture the company is striving to achieve.”
