The monitor now incorporates new analysis on the most recently reported non-executive director remuneration. 

The difference in the overall remuneration of men and women across the UK’s financial boardrooms during the four-year period decreased due to a marginal fall in remuneration for male board directors at UK firms, and a concurrent uptick in remuneration for their female peers. 

Overall pay across UK financial boardrooms fell between 2019 and 2023 on an average basis but remained higher than the European average every year through the period.

North American non-exec directors were found to have received significantly higher overall remuneration than their counterparts in the UK, primarily as a result of receiving equity and stock options in addition to their fixed-fee compensation, which UK and EU boards do not offer for independence and objectivity reasons.

Martina Keane, EY UK & Ireland’s financial services leader, said: “UK financial services firms have made clear progress towards more equitable pay for male and female board directors, but the pay gap between genders remains stark.

“While more men than women sit on committees and occupy chair roles, the fact that women on UK boards earn a quarter less than their male peers on average is a concerning reality.

“Global competition for talent at board-level is only growing, and UK financial services firms must do more to further improve gender equity in their boardrooms and balance remuneration levels.”

Between 2019 and 2023, average remuneration for female non-exec board directors across UK financial services firms increased 7%, from US$209,987 in 2019 to $225,275 in 2023. During this time, remuneration for male non-exec directors decreased 1%, falling from $301,966 to $299,076.

By comparison, over the same period, the gender pay gap across European financial services boardrooms increased by five percentage points, from 31% to 36%. 

Between 2019 and 2023, average remuneration for female non-exec board directors across European financial services firms increased by 12%, from US$164,584 in 2019 to $184,477 in 2023. During this time, remuneration for male non-exec board directors increased at a higher rate of 21%, rising from $238,706 in 2019 to $287,994 in 2023. 

In 2023, female directors tracked across UK financial boardrooms earned $75 for every $100 earned by male peers, compared with $70 for every $100 earned by male directors in 2019, representing a five percentage point decrease in the gender pay gap.

In contrast, in 2023, female directors tracked across European financial boardrooms earned $64 for every $100 earned by male peers, compared with $69 for every $100 earned by male directors in 2019, representing a five percentage point increase in the gender pay gap.

The gender split (as at the end of 2024) across directors of UK financial services firms stands at 45% female and 55% male, compared to 43% female and 57% male across European financial services firms more broadly.

Twenty-one percent of UK financial services firms have less than 40% female representation at board level – the same vs the end of 2023. In comparison, 28% of European financial services firms have less than 40% female representation.

Total levels of remuneration fell across UK financial boardrooms fell between 2019 to 2023 but remained higher than European boardrooms in every year through the period.

In 2019, UK non-exec board directors were paid 27% more than their counterparts in Europe more broadly. Boardroom remuneration across the sector in the UK averaged $269,802 per director (on mean), versus $212,360 across Europe’s financial boardrooms.

However, the pay gap between UK non-exec directors and their peers in Europe narrowed over the period. In 2023, UK non-exec board directors were paid 10% more than their peers across Europe more broadly, earning $266,368 versus $242,715 respectively.

This is due to mean remuneration for UK non-exec directors falling by 1% between 2019 and 2023, from $269,802 in 2019 to $266,368 in 2023, while over the same period, mean remuneration for non-exec directors across Europe rose by 14%, from $212,360 to $242,715. UK board directors were paid less than their North American counterparts in every year from 2019 to 2023, with the pay gap between the UK and North America widening over the period.

Omar Ali, EY global financial services leader, concluded: “The landscape for boardroom remuneration across financial firms in Europe is shifting, and compensation is a key consideration for chairs as they build and maintain their boards in an increasingly global industry. This is particularly the case as chairs of UK firms contend with the more lucrative packages offered in North America, which often include equity and options awards.

“Offering competitive – and importantly, equitable – pay is essential to ensure that boards are equipped with the skills and diversity necessary to navigate evolving market risks and challenges. A structured review of regional pay disparities – and the steps that can be taken to address them – is now integral to maintaining the strength of the UK financial services sector.”