Gender Equality and Banking: the Pay Gap Continues
40 years ago, the introduction of the Equal Pay Act heralded a new period of gender equality in the boardroom. Although changes have undoubtedly occurred, with not only more women working in the financial sector than ever before, but with programmes put in place by banks to ensure a positive working environment is created for both men and women, gender equality remains a hotly debated and relevant issue.
So what do the numbers say? According to our latest figures, although the pay between men and women in Investment Banking and Markets is broadly similar, men are still, on average, paid more than their female colleagues.
These base salaries from top banks around the city, entered confidentially into our database, suggest that while women may (on average) earn the same as men for their starting salaries, and those who make it to MD level will, too, be earning equal pay, there is a significant gap between male and female salaries during the intermittent years of climbing the corporate ladder.
What proves to be more revealing, however, is a look at the bonuses earned by city workers in Investment Banking and Markets, where there is a significant pay gap between men and women across the board as from Associate stage.
These numbers are medians, meaning that 50% of the bonuses will be less than those shown above, making the data less likely to be skewed by one or two particularly generous bonuses. This could arguably suggest that banks are more invested in their male employees as a whole, perhaps thinking that they are more likely to stick around and climb to MD level given the right incentive. What does this suggest about today's status of gender equality in the finance industry? While banks strive to show their dedication to the issue of sexual discrimination, figures point to the fact that it may continue to be relevant.
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