LONDON — Female managers earn £12,000 less than their male counterparts, according to new research published on Monday.
Analysis based on new reporting regulations reveals that the gender pay gap for UK managers now stands at 26.8% — an average of £11,606 per year. That is nearly £3,000 worse than last year’s calculation, which put the gap at 23.1%, or £8,964.
The data is based on the earnings of 118,385 managers, across 423 companies, and was carried out by the Chartered Management Institute (CMI) and XpertHR.
“Some people have tried to explain the gender pay gap away as being the result of different working hours or individual career choices. But when the analysis is based on the pay of more than 100,000 individuals in well over 400 organisations, it is clear that the pay gap is a very real fact of life for UK managers,” said Mark Crail, content director at XpertHR.
The calculations take into account both salaries and bonuses, as well as perks such as car allowances and commission. This is a change from last year’s calculation, which was based on salaries alone. But even when only salaries are considered for this year’s data, the analysis shows the gap has widened to 23.6%, or £9,326.
The findings also show women are more likely to fill junior management roles than men, (66% versus 34% of men), while 74% of director-level roles are occupied by men. However, even when women are in director-level positions they earn less on average: men take home £175,673, while women take home £141,529.
“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,” said CMI’s Chief Executive Ann Francke.
“The picture is worst at the top, with male CEOs cashing-in bonuses six times larger than female counterparts,” she said.
Making the effort to report accurately and tackle the problem is “essential if UK companies are to survive and thrive in the post-Brexit world,” she said. According to research published last year by management consultants McKinsey, closing the gender pay gap would add up to £150 billion a year to the UK economy by 2025.
New rules came into force in April this year stipulating that employers with more than 250 employees must publicly disclose the size of their gender pay gap. However, as of 22nd September, only 77 out of 7,850 eligible employers had done so.
The analysis also found:
- While the average bonus for a male CEO is £89,230, that for a female CEO is £14,945.
- Men’s pay rises and bonuses increased an average of 5.8%, while women’s increased an average of 3.7%.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.