Analysis highlights managerial gender pay gap

New research has found that females in managerial positions in the UK earn nearly £12,000 less on average than their male counterparts.

The Chartered Management Institute (CMI) and XpertHR have reported that the gender pay gap, as calculated under the new regulations, stands at 26.8 per cent, with the figures including salary and bonuses, as well as perks such as car allowance and commission.

As of April 2017, large employers have had to publicly disclose the size of their gender pay gap. At present, just 72 out of the 7,850 UK companies to which the new law applies have fulfilled their obligations.

Last year, analysis showed that, based on basic salaries, the pay gap based on managers’ basic salaries had put the gap at 23.1 per cent, which was roughly £9,000.

The analysis also found that women are nearly twice as likely to fill junior management positions than men, with men more likely to occupy senior positions (74 per cent).

Ann Francke, CMI’s chief executive, said: “Too many businesses are like ‘glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top. We now see those extra perks of senior management roles are creating a gender pay gap wider than previously understood. The picture is worst at the top, with male CEOs cashing-in bonuses six times larger than female counterparts.

“Our data show we need the government’s gender pay gap reporting regulations more than ever before. Yet, less than one per cent of companies have reported so far. Time for more companies to step up and put plans in place to fix this issue. It’s essential if UK companies are to survive and thrive in the post-Brexit world.”