News
Contact Us
Contact Us
For immediate expert advice
Gender Pay Gap amongst Managers Higher Than Previously Thought
A new piece of analysis has revealed the worrying news that the gender pay gap amongst the UK’s 3.3 million managers is around £3,000 more than previously thought.
New Reporting Requirements
The analysis, by the Chartered Management Institute (CMI) and XpertHR, was carried out in line with calculations set out in regulations introduced as part of the Government’s new gender pay gap reporting requirements.
It found evidence of a pay gap of 26.8%, with male managers on average out-earning female peers by £11,606 a year. This includes salary and bonuses, as well as perks such as car allowance and commission.
Previous analyses of the pay gap based on managers’ basic salaries had put the gap at 23.1% last year, or £8,964. Even without applying the new calculations, this year’s data apparently shows that this basic salary gap is, if anything, slightly worse at 23.6%, or £9,326.
The Government’s reporting regulations came into effect in April 2017, and require large employers (250+ employees) to publicly disclose the size of their gender pay gap. According to CMI, just 72 out of the 7,850 UK companies covered by the new regulations have so far fulfilled their obligations.
Women Excluded from Senior Roles
The analysis also found that junior management positions are predominantly filled by women (66% vs 34% men) and senior positions are much more likely to be filled by men (74% of director-level roles were occupied by men vs 26% by women).
To make matters worse, even when women do manage to progress to these more senior roles, the gender pay gap appears to widen even more. Men in director-level positions earn an average of £175,673 while the average figure for women is £141,529 – an average gap of £34,144.
The problem is further compounded by inequalities in bonus payments, with the gender bonus gap across all managers standing at 46.9%. This increases considerably at the most senior level, where the average bonus for a male CEO is £89,230 compared to £14,945 for a woman – an 83% bonus pay gap.
“Too many businesses are like ‘glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top,” commented CMI’s chief executive Ann Francke. “We now see those extra perks of senior management roles are creating a gender pay gap wider than previously understood. The picture is worst at the top, with male CEOs cashing-in bonuses six times larger than female counterparts.”
“Our data show we need the Government’s gender pay gap reporting regulations more than ever before,” she added. “Yet, less than one per cent of companies have reported so far. Time for more companies to step up and put plans in place to fix this issue. It’s essential if UK companies are to survive and thrive in the post-Brexit world.”
Pay Inequality amongst MBA Graduates
Of course, pay inequality amongst managers is by no means a problem unique to the UK. A recent study by Forbes of MBA graduates in the US found that women earn less than men as soon as they leave business school, and after five years in employment this gap has further widened.
On average, male MBA graduates earned 22% more than women. There was significant variation in the pay gap between sectors however. The biggest gap was to be found amongst those working in management (36%), whilst those working in healthcare apparently experienced the lowest gender pay gap (3%).
Contact Us
For expert legal advice on pay inequality, and other types of work-place discrimination, then contact our specialist employment lawyers today.
Related Posts
AWARD-WINNING EMPLOYMENT LAWYERS IN LONDON
Do you have a high value employment claim as a senior employee or executive in the UK?
Our experts can help
Contact Usor call 0207 965 7203
Contact us for immediate confidential advice. Out of Hours and Weekend help available
Client Testimonials
It would not be an exaggeration to say that I was extremely pessimistic about being able to get a decent redundancy settlement. I was feeling really low and depressed. That all changed when Caroline Walker agreed to act for me.She secured an excellent settlement for me, without me having to face the expense and stress of going to court...
- Martine Roberts"I cannot recommend you highly enough. A law firm that really delivers all it promises. I never thought I would say that I found the costs reasonable, but I did, and I will never get over how much you secured for me in a totally unexpected settlement. It has set me up for the next chapter in my life. Thank you, thank you."
- J. Brown"I would like to thank you for your exceptional service. You and your firm Cavendish Employment Law have been brilliant in your responsiveness and legal advice. We have had numerous time sensitive and complex issues. You always delivered for our company in spite of very challenging timelines. I highly recommend you and your firm."
- John McVeighIt would not be an exaggeration to say that I was extremely pessimistic about being able to get a decent redundancy settlement. I was feeling really low and depressed. That all changed when Caroline Walker agreed to act for me.She secured an excellent settlement for me, without me having to face the expense and stress of going to court...
- Martine Roberts"I cannot recommend Caroline more highly. Any client of hers is really fortunate to have her on their side. She is a credit to her profession and I am most grateful to her."
- Jake Brown
