07 November 2012
Female directors 'paid £423k less than males over lifetime'
Female directors are paid hundreds of thousands of pounds less than males in similar positions over the course of their career, a new study has revealed.
Research conducted by the Chartered Management Institute (CMI) has established that women fulfilling such senior roles typically receive wages some £423,390 lower than men in their lifetimes.
This survey - which involved the analysis of data compiled by XpertHR - indicated that the current pay gap between males and females at management level stands at £10,060 annually.
As such, females who enter executive positions at the age of 25 and then retire 35 years later after working their way up their chosen career ladder take home gross wages totalling £1.09 million.
By comparison, males taking the same path receive an average of £1.5 million, as men in directorship roles are typically paid £40,325 annually while their female counterparts are rewarded with £30,265 every year.
Interestingly, the statistics prove that women in junior executive positions are actually paid slightly more than men, but this trend steadily reverses as people progress through their careers.
Indeed, by the time individuals reach the level of director, males are, on average, paid a basic salary of £127,257 - some £14,689 more than females.
Meanwhile, a major discrepancy also exists in terms of bonuses granted to directors, as women tend to receive less than half of the typical £7,496 in additional remuneration granted to men.
In general, males were also found to be more likely to be awarded a bonus of any description than females.
Ann Francke, chief executive of the CMI, noted that while many businesses have increased their focus on boosting female representation in their boardroom, this study proves "we've still got a lot to do on equal pay and equal representation in top executive roles".
"Women make up almost three out of four at the bottom of the ladder but only one out of four at the top ... allowing these types of gender inequalities to continue is precisely the kind of bad management that we need to stamp out," she added.
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Posted by Francesca Witney