Are you earning what you’re worth?
– global executive gender pay gap falls dramatically to 8.7%
– UK gap nearly halves since March to 12%
– US leads the way with gap dropping to 2%
– CEOs have the biggest gender gap of 31%
– in Technology, gender gap has reversed in favour of women
Research published last November has highlighted the impact equality legislation is having on the gender pay gap for senior executives, with the global gap nearly halving to from 17.1% to under nine percent (8.7%).
While the UK is witnessing the largest narrowing of the gap – in the six months from March it fell from 21.5% to 12.2% – executive pay is noticeably more equitable in the US, where the gender gap decreased from 7.9% to 2% during the same period.
The findings have emerged from global analysis of remuneration packages of over 7,700 executives earning over $100,000 conducted by The Pay Index, the leading source for senior executive compensation and part of the international human capital specialist firm Leathwaite.
Before new regulations in the UK were implemented in April the gap was significantly larger. In the United States, last year’s introduction of legislation in several states which restricts companies from asking prospective employees about their existing pay has effectively given the country a six-month lead in the battle for pay parity.
James Rust, founder and managing director of The Pay Index said
These laws have put gender pay firmly under the spotlight. The Pay Index is providing us with an unrivalled insight into the current global gender pay gap – and with over 100 new executives adding their profiles every week, it’s allowing this on-going debate to be underpinned by real-time statistics.
However, there is still much work to be done to create parity, but the speed and direction of the trend is a very positive sign. We’re hopeful that in a further six months, the size of the gap we’re seeing in the UK will gravitate much more closely to those figures in the US.
It’s well documented that companies are facing increasing challenges to attract and retain talent – at all levels – due to skills shortages, high employment levels and increasing job opportunities. As such, companies with gender pay gaps will find it increasingly difficult to maximise their performance if they do not embrace pay parity. Pay parity is a positive thing for both individuals and business.
The Pay Index analysed trends within ten key industries over the last six months
Key Findings
- CEO … the gender gap has almost halved. Currently men receive 30.5% more vs March when they were paid 52% more than women
- Legal … the gender gap is falling. Currently men receive 29.1% more vs March when they were paid 35.4% more than women
- Technology … the gender gap has reversed in favour of women. Currently women receive 9.2% more vs March when men were paid 6% more than women
- COO / Operations … the gender gap has shrunk and is now almost non-existent. Currently women are paid 0.1 % more vs March when men were paid 11.9% more than women
- Sales, product, marketing and digital … the gender gap has almost halved. Currently men get paid 8.6% more vs March when they were paid 15.5% more than women
- Risk … the gender gap is falling. Currently men get paid 2.1% more vs March when they were paid 4.6% more than women
- Audit … the gender gap has narrowed but still favours women. Currently women receive 16.2% more than men vs March when they were paid 23.7% more than men
- Information Security … the gender gap has narrowed but still favours women. They currently receive 11% more vs March when they were paid 13.2% more than men
- Finance, Tax & Treasury … the gender gap has widened in favour of men. They currently receive 7% more vs March when they were paid 3.1% more than women
- Compliance … the gender gap has narrowed slightly but still favours women. Currently women receive 5% more vs March they were paid 6.6% more than men
- HR … the gender gap is falling, but in a function where there are more women employed than men, currently men receive 14% more vs March when they were paid 18.6% more than women
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About the data:
– the findings are based on the analysis of 7,708 senior global executives in September
– the respondents analysed lived in 452 different cities across 64 countries
– the original data set (3,912 respondents) was captured in March
– approximately half of the database work within companies with over 10,000 employees
– 90% of the database possess a Bachelors’ and / or Masters’ degree
– 86% of the database possess 16 or more years in industry
About The Pay Index:
The Pay Index, which is the leading source for senior executive compensation, is a wholly owned subsidiary of Leathwaite Human Capital Limited.
Leathwaite was formed in 1999 and is a leading international firm of human capital specialists with offices in London, New York, Hong Kong and Zurich. With a leading reputation for delivering exceptional executive search, executive interim, management consultancy and market intelligence solutions, Leathwaite is seen as a partner of choice for some of the world’s most innovative and ambitious companies.
