New research from Fox & Partners highlights a slight narrowing of the gender pay gap among FTSE 100 board directors – but disparities in remuneration and representation persist.
The average pay for female board members stands at £335,953, which is 68 percent lower than the £1.07 million average for their male counterparts. This marks a small improvement from the previous year, where the gap was 70 percent.
Catriona Watt, Partner at Fox & Partners, said, “It’s encouraging to see the gender pay gap has slightly shrunk over the past year for directors of the UK’s largest businesses but obviously the figures show that there is still a considerable way to go. The pace of change is still very gradual. Listed companies should be striving to close the gap faster.”
Faster Pay Growth for Women
The narrowing gap is partly due to faster pay growth for women. Female directors saw their average pay increase by 9 percent in 2023, up from £308,984 in 2022. In contrast, male directors experienced a 3 percent rise, with average pay growing from £1.04 million to £1.07 million.
Despite this progress, structural inequalities remain a barrier. A significant factor contributing to the pay gap is the high proportion of women (91 percent) occupying non-executive roles. Non-executive positions, which often involve part-time responsibilities and carry lower remuneration, contrast with the full-time executive roles predominantly held by men.
The imbalance is further reflected in the distribution of senior non-executive roles. Men continue to dominate positions such as Chair, which typically command higher fees and greater influence. However, the number of female executive directors has increased 10% in the past year to 43 in 2023, up from 39 in 2022.
Catriona Watt added, “FTSE 100 companies need to continue investing in schemes that promote female opportunities, mentoring and role-modelling and working on culture and appropriate infrastructure to allow women to thrive in order to make a significant impact on the gender pay gap.”
“All FTSE 100 boards should focus on improving their diversity and fostering an inclusive environment in their companies at large with appropriate messaging in this regard from the top down.”