The gender pay gap among non-executive directors in European financial services boardrooms widened from 31% in 2019 to 36% in 2023, even as absolute pay levels for women increased during the same period, according to consulting firm EY.
This divergence contrasts with North America, where the gender pay gap narrowed from 7% to 5%, according to the EY European Financial Services Boardroom Monitor. Male non-executive directors in Europe earned, on average, over $100,000 more than their female counterparts in 2023, compared to just over $16,000 in North America.
In Europe, women earned $64 for every $100 earned by male non-executive directors in 2023, compared to $69 in 2019. Over the same period, the average remuneration for female non-executive directors rose by 12% to $184,477, while male pay increased by 21% to $287,994.
In North America, female non-executive directors saw a 13% pay increase to $324,250, while male counterparts experienced a 10% rise to $340,481. Women in North American boardrooms now earn $95 for every $100 earned by men, marking a more “level playing field” compared to Europe.
One driver of the regional pay gap is remuneration structures, shared the researchers. North American non-executive directors are compensated 39% more than their European peers, with average pay reaching $334,707 in 2023 compared to $242,715 in Europe. This difference stems from the inclusion of equity and stock options in North American compensation packages, a practice discouraged in Europe to maintain independence and objectivity.
In 2023, equity and stock options accounted for 56% of non-executive remuneration in North America, up from 54% in 2019. On the other hand, European non-executive directors receive virtually no variable pay, with fixed-fee compensation averaging $242,715, compared to $156,811 in North America.
The gender split in European financial boardrooms stood at 43% female and 57% male by the end of 2024, an improvement from prior years. However, subcommittees remain predominantly male, with 55% male representation compared to 45% female. This imbalance affects pay, as male directors hold more committee roles per individual, increasing their overall remuneration.
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Female committee chairs in Europe earned half as much as their male counterparts in 2023, while female committee members earned 75% of their male peers’ pay. In North America, gender pay disparities on committees were less pronounced, with women earning 97% of what men earned in similar roles.
Compensation also varies by sector and skillset, according to the data. In 2023, Swiss financial services firms offered the highest boardroom pay in Europe, with non-executive directors earning a median of $338,621. Meanwhile, directors in Norway, France, and Belgium had the lowest medians at $50,472, $83,941, and $110,534, respectively.
Non-executive directors with c-suite or sustainability expertise earn more across Europe. In 2023, those with c-suite experience averaged $260,487 annually, compared to $226,119 for those without. Sustainability expertise boosted pay further, with averages reaching $301,098.
Gender gaps appear in high-demand roles too. From 2019 to 2023, male directors with c-suite experience earned $284,065 annually on average, compared to $164,696 for women. Similarly, men in sustainability roles made $429,868, surpassing women’s $167,587.
