Anyone looking for an example of the gender pay gap – that is, the difference in pay between men and women – should look to the UK: women leaders of the biggest UK companies receive only a fraction of the salaries of their male colleagues. According to a study by New Street Consulting, the average salary of female directors of the FTSE 100 stock market index is only £ 237,000. That’s just over a quarter of the £ 875,900 their male counterparts receive.
So wages also show that women have less influence in the economy than men – also in Britain.
On the one hand, the leaders of large British companies are the top managers who make full-time decisions, like the members of the board of directors in the German system. On the other hand, there are also UK directors whose roles correspond to those of German supervisory boards, who have other full-time jobs and a part-time supervisory function in companies. The reason for the large pay gap between women and men directors is mainly due to the fact that the majority of women occupy non-executive positions that correspond to the supervisory board and are much less likely to get the highest paying jobs and much more influential. on the board of directors or even the general managers become, therefore CEOs.
Businesses would like to get rid of the Old Boys Club at the top
When it comes to the number of women, a lot has changed in UK companies in recent years: in January of this year around 34% of the directors of the wider FTSE were 350 women, in October 2015 this figure was not was that about 22%. If you really want to achieve equality, it’s not enough to focus on the percentage of women, said Claire Carter of New Street Consulting of the Guardian newspaper. “The key is to ensure that women are given more leadership responsibilities and are trained and prepared to take on that responsibility.” Most businesses would like to get rid of the Old Boys Club at the top. “You need to check if there are any barriers preventing women from getting to the top of their business.”
When only comparing board and supervisory board salaries, there is still a significant gender pay gap in the UK: female non-executive directors of FTSE 100 companies receive in average £ 104,800 per year £ 170,400 for men. When it comes to board members, the difference is even greater: female executive directors receive an average of £ 1.5million, their male colleagues £ 2.5million per year.
In Germany, the situation is somewhat different: female board members of the 30 DAX companies earn more on average than their male colleagues – not counting CEOs. According to a study by the German Association for the Protection of Securities Ownership, the members of the board of directors of Dax amounted to an average of 3.4 million euros in the past financial year, the men at 2.9 million euros. Experts explain the difference by the fact that women are in the minority with less than 18%, but many companies are trying to have more women in management positions. This increases their market value. However, the numbers change dramatically if you also include CEOs who earn significantly more than regular board members. In 2020, there was only one CEO in Dax for a few months: Jennifer Morgan, who left SAP in April 2020. As of May 2021, Merck boss Belén Garijo has been the only female head of business. ‘a Dax group. The best employees of Dax in 2020 were therefore systematically men. Linde boss Stephen Angel received 14 million euros, Christian Klein from SAP 8.4 million euros and Volkswagen boss Herbert Diess 7.9 million euros.
For supervisory board positions more comparable to UK non-executive directors, there is a statutory quota of women in large listed companies in Germany. According to the March Women on Supervisory Boards (FidAR) initiative, around 33% of all supervisory boards of the 186 German companies surveyed are women. On average, female supervisory board members in Germany receive lower compensation than supervisory board members because they are also less likely to chair the board and are less likely to be represented on important committees such as the committee. executive.