Transparency rules expose extent of management gender pay gap

 

Salary analysis by the CMI and Xpert HR shows that the gender pay gap in managers’ salaries is even bigger than previously estimated.

As calculated under the Government’s new reporting regulations, the gap stands at 26.8%

In real terms, male managers earn on average £11,606 per year more than their female peers, and takes into account benefits such as car allowance and commission.

This is £3,000 more than previously thought.

The revelations are a result of government reporting regulations introduced 6 months ago and at a time when just 72 out of a total of 7,850 eligible employers (of 250+ employees) have fulfilled their reporting obligations.

Xpert HR’s report is based on salary data of 118,385 managers across 423 organisations over the past year.

An infographic produced by the CMI shows both the extent of the problem and the underlying cause: different rates of promotion for men and women.

According to the CMI, while 73% of entry level/junior hires are female, 68% of those working at Director level are male.

As women progress to senior roles, so the pay gap widens: at director-level the gender pay gap averages £34,144, with men earning an average of £175,673 and women £141,529.

It is clear the problem increases with seniority, and is exacerbated by male CEOs cashing in bonuses on average six times larger than their female counterparts. The gender bonus gap across all managers stands at 46.9%.  

At C-suite level, the average bonus for a male CEO is £89,230 compared to £14,945 for a female – an 83% bonus pay gap.

And while salary and bonuses continue to pick up for both men and women, men are benefiting disproportionately.

Pressure continues to build  on companies to not only follow the new regulations in disclosing gender pay, but also to publish an action plan detailing the practical steps they are proposing to close the gap.

 

Tuesday, 26 September 2017

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Transparency rules expose extent of management gender pay gap