**Title:** Gender Pay Gap in European Financial Services Reaches Six-Year High
**Meta Description:** The gender pay gap among non-executive directors in European financial services has widened, highlighting ongoing disparities despite increased female representation.
**URL Slug:** gender-pay-gap-europe-financial-services
**Headline:** Gender Pay Gap Among Non-Executive Directors in European Financial Services Hits Six-Year High
The gender pay gap among non-executive directors in European financial services firms has reached its highest level in six years, with women earning only 62% of what their male counterparts make in 2024, down from 65% in 2023. This alarming trend, reported by consultancy EY, marks the largest disparity since the firm began tracking this data in 2019.
Despite an increase in female representation on boards—where women constituted 41% of non-executive roles in 2024, a rise of six percentage points since 2020—the pay gap continues to widen. In contrast, North America shows a smaller gap, with women earning 94% of what men earn, maintaining the same level as the previous year, and holding 38% of non-executive positions, also up six percentage points over four years.
Omar Ali, EY’s global financial services leader, emphasized that the growing gender pay gap in Europe’s leading financial firms serves as a stark reminder that increased representation does not automatically lead to pay equality. He noted that while gender diversity at the board level is improving, the pace is slow and tends to decline with age.
On a global scale, female board directors in financial services earned 22% less than their male peers in 2024, with average compensations of $252,672 for women compared to $325,402 for men. This gap has remained relatively stable over the past five years.
EY’s Global Financial Services Boardroom Monitor, which tracks non-executive pay data across Europe, North America, and the Asia-Pacific region, also revealed a growing pay premium for older non-executives. In Europe, the pay discrepancy for board members aged 70 and over is 24%, while in the Asia-Pacific region, it stands at 43%. The smallest gap is found in the US and Canada, at 8%. Ali pointed out that while valuing experience is important, the demand for digital expertise in financial services may favor younger candidates who possess these skills.
Research from 25X25, a London-based advocacy group focused on enhancing female leadership in British companies, suggests that the need for technology and transformation skills in financial firms could benefit women. According to Tara Cemlyn-Jones, founder and CEO of 25X25, women currently make up just over half of board members with relevant backgrounds, indicating that investing in this skill set could lead to improved gender balance in executive roles.
In conclusion, while the representation of women in financial services is on the rise, the persistent gender pay gap highlights the need for continued efforts to achieve pay equity. As the industry evolves, leveraging the skills of women in technology and transformation roles may play a crucial role in bridging this gap.
**FAQ:**
**Q: What is the current gender pay gap among non-executive directors in European financial services?**
A: In 2024, female non-executive directors in European financial services earned 62% of what their male counterparts earned, marking the widest gap in six years.
