Gender pay gap in UK financial boardrooms narrows but remains significant

The gender pay gap in UK financial services boardrooms decreased from 30% to 25% between 2019 and 2023, according to EY’s European Financial Services Boardroom Monitor. Despite this improvement, disparities in pay remain, driven largely by more men holding senior roles and committee positions.

The reduction in the gender pay gap over the four-year period reflects a slight increase in average remuneration for female board directors and a minor decline for their male counterparts. However, overall boardroom pay in the UK remains higher than the European average.

Martina Keane, EY’s financial services leader, said: “While there’s been progress in narrowing the pay gap, female board directors still earn a quarter less than their male peers. UK financial services firms need to further improve gender equity and ensure remuneration levels are balanced.”

International comparisons

EY’s report highlights how UK boardroom remuneration compares globally. In North America, non-executive directors earn significantly more than their UK counterparts, largely due to stock-based compensation not available in the UK. Between 2019 and 2023, female non-exec directors in North America earned $324,250 on average, surpassing male UK directors who earned $299,076.

Across Europe, the gender pay gap worsened by five percentage points to 36%, driven by faster-growing pay for male directors compared to female directors. In contrast, North America saw its gender pay gap narrow from 7% to 5% over the same period.

In terms of gender representation, 45% of UK financial board directors were women at the end of 2024, compared with 43% across Europe and 36% in North America.

UK sector trends

Non-exec directors in UK banking earned the highest pay in 2023, with median remuneration at $296,785, followed by insurers at $191,000 and asset managers at $135,000. Directors with c-suite experience or expertise in sustainability were found to earn significantly more than their peers, with sustainability specialists earning an average of $365,884 in 2023.

Omar Ali, EY global financial services leader, concluded: “Competitive and equitable pay is crucial for attracting and retaining talent in an increasingly global industry. UK firms need to address regional pay disparities to remain competitive.”

The report tracked 290 non-exec directors across 19 UK firms and compared data from 87 European and 86 North American firms.