Male bonuses double those of women, says study

 
Male and female executives On average women receive less than half the amount of bonus that men do

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The pay gap between men and women is exacerbated by bonus payments given to male managers which are on average double those for women, says the Chartered Management Institute (CMI).

Male managers' average extra payments were £6,442 last year compared with £3,029 for women.

The CMI said their salaries were already almost 25% higher than women's.

Its study, of 43,000 managers, showed that men would earn £141,000 more in bonuses over a lifetime.

At more senior levels, the pay gap for both basic pay and bonuses, increased.

Women directors' average bonus is £36,270, while men receive £63,700.

Loss

The chief executive of the CMI, Ann Francke, said: "Despite genuine efforts to get more women onto boards, it's disappointing to find that not only has progress stalled, but women are also losing ground at senior levels.

CMI chief executive Ann Francke : "Organisations that have more diversity at the top perform better"

"Women are the majority of the workforce at entry level but still lose out on top positions and top pay. The time has come to tackle this situation more systemically."

She said businesses would lose out in terms of growth, employee engagement, and more ethical management cultures.

Labour's shadow minister for women and equalities, Yvette Cooper, said: "It's disgraceful that the corporate gender pay gap seems to be getting wider rather than narrowing.

"Women executives already only get three-quarters of the pay of male executives in similar jobs. And now this research shows women managers are only getting half the bonuses too.

"It is in the interests of business and the economy for women's talents to be valued and promoted. And it's high time that women were fairly rewarded. Instead, once again, it looks like the clock is being turned back."

Target

Start Quote

The law is important and needs to be strengthened and simplified for it to be effective”

End Quote Geraldine Healy Professor of employment relations

Earlier this year, Boardwatch UK recorded the first fall in the percentage of women on boards since the figures were first complied in 1999.

Lord Davies, who conducted a review into the gender balance on company boards in 2011 set a target for 25% women to be reached by 2015. The current representation is 17%.

The study was assisted by the salary specialists XpertHR.

Mark Crail, from XpertHR, said: "There is no good reason for men to still be earning more in bonuses than women when they are in very similar jobs.

"But it's often the case that men and women have different career paths, with 'male' roles more likely to attract bonuses.

"While women are generally getting lower bonuses than men, especially at senior levels, they may be entering occupations where there is less of a culture of bonus payments. The question for employers is why that's the case."

Separately, the Office for National Statistics reported on Tuesday that total bonus payments across the whole UK economy in the year to end-March were £36.9bn, a 1% rise on the previous 12 months.

The total equates to an average of about £1,400 per employee.

The ONS said that £13.3bn was paid in the finance and insurance sector, virtually the same as the previous year.

Sectors that saw a rise in bonuses included the communication, retail, and transport industries.

 

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  • rate this
    +14

    Comment number 282.

    Until men and women have equal rights to maternity and paternity pay (making men just as "dangerous" to employ as females), and attitudes catch up with the fact that either parent could be the best choice to be at home, I can't see this improving.

  • rate this
    +1

    Comment number 268.

    Men only get more money than women because they have traditionally been more physically able bodied to do certain types of work. Whereas times have now changed and physical labour has declined and women and men have adopted similar roles, the psychology of men getting more remains.

    We need to see more women going on strike, this too has been dominated historically by male professions.

  • rate this
    +5

    Comment number 259.

    This discussion thread is surely some evidence that while the law may have changed, attitudes certainly haven't.

    Sexism is alive and well in the world of employment, especially now that feminism appears to be a dirty word to many.

  • rate this
    +28

    Comment number 158.

    Women's pay is a symptom, not the disease. The disease is a culture where pushy people are seen as winners, and people who quietly go about their job always overlooked as not being 'driven'. It's made worse by people employing people in their own image, i.e. loudmouths promote loudmouths. This culture generally disadvantages women, but plenty of competent but quiet men lose out too.

  • rate this
    +13

    Comment number 155.

    Biggest bonus I've ever had in 20 years work is a 50 quid gift card.
    It breaks my heart to hear that women directors only get £36,270 bonuses, while men receive £63,700.

 

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