Yahoo Finance Gender pay gap widens to £12,000 for female managers
The pay gap between male and female managers is worsening with women earning an average £12,000 less than their male colleagues, figures show.
A study showed that just 1pc of the UK’s large companies have complied with the Government’s new pay transparency rules.
The gender pay gap for the UK’s 3.3m managers is nearly £3,000 bigger than previous data had suggested, the Chartered Management Institute (CMI) and XpertHR found. As a result, it is believed the average female manager earns £12,000 less than her male counterpart.
Too many businesses are like glass pyramids
Ann Francke, CBI
The figures follow the introduction of the Government’s reporting regulations in April, which require large companies with more than 250 employees to disclose the size of their gender pay gap. As of last week, just 77 of the 7,850 companies had fulfilled their obligations, according to the CMI.
A survey of 118,385 managers from 423 organisations also revealed women were far more likely to fill junior management positions than men, with 66pc in such roles versus 34pc for men. Meanwhile, men tend to have more senior roles, with just 26pc of director-led roles being held by women compared to 74pc by men.
The higher up the career ladder a woman makes it, the pay gap widens further, the survey suggested. In director-level positions, men earn an average £175,673 while women with the same titles earn 19pc less at £141,529. The CMI said that this discrepancy was partly driven by a gulf in bonus payments with the average bonus for a male chief executive coming in at £89,230, 83pc more than the average bonus for female bosses.
“Too many businesses are like ‘glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top,” said Ann Francke, the CMI chief executive. “We now see those extra perks of senior management roles are creating a gender pay gap wider than previously understood.”
