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Gender pay Gap still growing

A survey conducted by the Institute of Directors has revealed an alarming Increase in the Gender Pay Gap

The Institute of Directors (IoD) annual Directors Rewards survey, carried out by Croner Reward, part of Wolters Kluwer UK, analysed 3, 945 jobs from around 1, 200 organisations. The results published today are based on evidence drawn from all sectors and size of organisation.

The survey shows that the pay gap between male and female directors is now 22%. The biggest gaps appeared in the service and voluntary sectors where female pay is as much as 26% below that of their male counterparts.  In the service sector this means an average salary of £56,933 for a female director compared with £70,657 for a man.  The public sector had the smallest gap (5%).

The financial services sector has seen an improvement again this year and the pay gap is now 9% compared with 14% in last year’s survey and 35% two years ago.
Commenting on the gender pay gap figures (1) released today (07/11/07), Katherine Rake, Director of the Fawcett Society, said:

“If you want to see an end to the pay gap there’s nothing to celebrate today.
“Fawcett and UNISON last week marked Women’s No Pay Day [see link on the right of this page] because the pay gap is equivalent to men being paid all year and women working for free from October 30th to year end. I’m sad to say we’ll be marking it on exactly the same day next year.”
“The message to Government could not be clearer: it’s time to stop dithering and take stronger action on the pay gap that rips women off.

Pay


The average increase for directors in this survey was 3.5%. Basic pay for a managing director of a small company (up to £5m) is £65, 000. In a large organisation with a turnover between £50 million and £500 million, a managing director could expect to earn £141, 440.

On average, 23% of non-executive directors work unpaid. 30% had no pay increase last year and those who did had an average increase of 3%.
The survey found that directors in financial services are still the highest paid. Managing directors in the public sector have maintained their position as second best paid after shooting up to that position in last years survey from 4th. ‘Other directors’ in the public sector have also now caught up with those in manufacturing and private services.

Hours of Work and Holidays

31% of directors in small companies are working over 55 hours a week with 43% working 46 to 54 hours.  In medium-size companies, 24% of directors work over 55 hours and 35% work 46 to 54 hours. In large companies (£50 to £500M turnover), 35% of directors are now working over 55 hours per week and 53% work 46 to 54 hours.

The survey also shows that directors seldom take their full holiday entitlement.  In medium and large companies around 35% of directors are entitled to 30 days holiday, but only around 20% take this many days and around a quarter take 20 days or fewer.

Flexible Working

Overall, 63% of fully executive directors were eligible for some form of flexible working. The offer of flexible working varied by company size with 78% of directors in small companies being eligible compared with 57% in medium companies and 46% in large companies.

Regional Pay

Executive directors in London can earn around a quarter more than their counterparts in Scotland (£80, 000 compared with £64, 851). Companies in the North East pay the average director 1% more than the national rate, whilst those in Scotland, North West and the Midlands pay as much as 7% below the national average.

Posted by, Asif Yusuf

 

 

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