Is there still a gender pay differential in banking?
Of course there is. The question is 'How bad is it?'. Having analysed over 4,000 salaries and bonuses in Investment Banking & Markets, we came across some shocking truths, and some myth-busting facts.
1. From the very outset of their career, women are paid less than men with a 10-16% gap even at analyst and associate level. As expected, the gap widens with seniority: the widest is at Vice President (VP) level (VPs are generally 27-32 years old), when it reaches as staggering 27%. And that happens to be the age generally associated with childbearing.
2. If you stick it out to the top, the differential finally flattens out: at Managing Director (MD) level the gap narrows with female remuneration packages only 1% away from their male counterparts. This indicates that female leadership is acknowledged and rewarded, when women make it through the lower echelons
3. There are VERY few women in banking: male/female ratio rises from around 5:1 at the lower levels (Analyst, Associate and VP) to a paltry 17:1 at MD level.
Commenting on the data, Robert Benson, CEO, said, 'Despite the continued focus on pay equality and the drive to increase the number of women in senior roles, our data suggests that the investment banking industry still has a long way to go. The figures reveal a shocking lack of both female representation and pay equality which will do nothing to improve the already poor image of the industry amongst the general public.'
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