Female Board Members of Biggest UK Companies Paid 69% Less
Female board members at FTSE 100 companies are paid 69% less literally across the board than their male counterparts, according to figures from employment lawyers Fox & Partners.
Women took home an average of £335,953 for board roles at FTSE 100 companies - the hundred biggest listed companies in Britain – last year, compared with an average of £1,073,445 paid to men.
By comparison, the gender pay gap across the whole UK labour market stood at 13.1% in April 2024, according to official body the Office for National Statistics.
The 69% gender pay gap for board director roles in FTSE 100 companies is fractionally tighter than in 2022, when the difference was 70%
Catriona Watt, a partner at Fox & Partners, said: “It’s encouraging to see the gender pay gap has slightly shrunk over the past year for directors of the UK’s largest businesses but obviously the figures show that there is still a considerable way to go.
“The pace of change is still very gradual. Listed companies should be striving to close the gap faster.”
The gap for executive director pay stood at 29.8% in 2023, with female executive directors earning an average of £2,332,334, compared with their male counterparts who were paid £3,150,424.
However, the Fox & Partner figures mask the fact that 91% of female board directors hold non-executive director (NED) roles rather than full-time positions.
On average, female non-executive directors were paid £127,593 compared to £191,381 for male non-executive directors – one third less than their male counterparts.
Underrepresented as CEOs
Women remain underrepresented in CEO roles in the UK’s largest listed businesses.
There are just nine female chief executives of FTSE 100 companies.
- Margherita Della Valle, CEO of telco Vodafone
- Dame Emma Walmsley, CEO of pharma giant GSK
- Allison Kirkby, CEO of telco BT
- Amanda Blanc, CEO of insurer Aviva
- Debra Crew, CEO of drinks giant Diageo
- Jennie Daly, CEO of construction company Taylor Wimpey
- Milena Mondini de Focatiis, CEO of insurer Admiral Group
- Louise Beardmore, CEO of United Utilities
- Liv Garfield, CEO of water supplier Severn Trent
The gender imbalance is even worse in the US, where there just 13 female CEOs leading companies in the S&P 500, including Mary Barra of General Motors, Michele Buck of Hershey and Jane Fraser of Citigroup.
Men also hold the more senior non-executive roles such as Chairman, which brings with it a higher pay (director’s fee), as well as additional responsibility.
Women who held the role of non-executive director were paid an average of £127,593 while men in the position earned £191,381 — a pay gap of 40 per cent.
Watt said: “We noted several years ago that listed companies were achieving boardroom gender diversity almost exclusively by appointing women to non-exec roles rather than executive roles. That flattered their figures but meant that women were still largely excluded from the arguably most important and most highly paid corporate jobs.
“FTSE 100 companies need to continue investing in schemes that promote female opportunities, mentoring and role-modelling and working on culture and appropriate infrastructure to allow women to thrive in order to make a significant impact on the gender pay gap.
“All FTSE 100 boards should focus on improving their diversity and fostering an inclusive environment in their companies at large with appropriate messaging in this regard from the top down.”
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