The gender pay gap across UK financial services boardrooms narrowed by 5% between 2019 and 2023, despite widening by the same margin across Europe, according to the latest EY European Financial Services Boardroom Monitor.  

EY’s report found that the gender pay gap among European boardrooms increased from 31% to 36%, while falling in the UK from 30% to 25%, which EY claims is down to a marginal decrease in compensation for male board directors at UK firms, and a concurrent uptick in pay for their female peers.  

Between 2019 and 2023, the average pay for female non-exec board directors across European FS firms increased by 12%, reaching $184,477 (£151,436) in 2023. 

During that time, the salaries for male non-exec board directors increased by significantly more at 21%, with men earning $287,994 (£236,405) by 2023.

In comparison, over the same period, the gender pay gap across the boardrooms of the largest North American financial services firms narrowed from 7% to 5%, with female non-exec board directors in North America making 13% more than their male counterparts in Europe.

In 2023, remuneration for female non-exec board directors at North American firms averaged $324,250 (£266,287), versus $287,994 (£236,512) for male non-exec directors at European firms.

The data shows that female board directors at UK, Swiss and Spanish financial services firms received the highest overall pay in 2023, while those at Norwegian, French and Swedish firms received the lowest.

“UK financial services firms have made clear progress towards more equitable pay for male and female board directors, but the pay gap between genders remains stark,” said Martina Keane, EY UK & Ireland financial services leader. 

“While more men than women sit on committees and occupy chair roles, the fact that women on UK boards earn a quarter less than their male peers on average is a concerning reality.”

Meanwhile, pay across UK financial boardrooms fell between 2019 and 2023 on an average basis but remained higher than the European average every year through the period. 

In 2019, UK non-exec board directors were paid 27% more than their counterparts in Europe more broadly, averaging $269,802 (£221,517) per director, versus $212,360 (£174,355) across Europe’s financial services boardrooms.

According to the report, this pay gap narrowed over the period, with UK non-exec board directors being paid only 10% more than their peers across Europe by 2023.

However, UK board directors were paid less than their North American counterparts in every year from 2019 to 2023, with the pay gap between the UK and North America widening over the period. 

In 2019, North American non-exec board directors were paid 12% more than counterparts in the UK, but by 2023 this had widened to 26%, with North American board members earning $334,707 (£274,689) per director, versus $266,368 (£218,614) in the UK.

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“Competition for boardroom talent is high and increasingly global, and remuneration is becoming a more prominent focus,” said Omar Ali, EY global financial services leader. 

“The landscape for boardroom remuneration across financial firms in Europe is shifting, and compensation is a key consideration for chairs as they build and maintain their boards in an increasingly global industry. 

“This is particularly the case as chairs of UK firms contend with the more lucrative packages offered in North America, which often include equity and options awards.”