Investment sector inclusion activist group The Diversity Project revealed that the gender pay gap for industry professionals still has a long way to go.
The analysis found the progress made to bridge salary differences between men and women since mandatory reporting began in 2017 has been “slow and painful”, despite having “some of the widest pay gaps of any sector”.
According to The Diversity Project, the medial salary pay gap has narrowed from 31.5% to 27.6% and the bonus pay gap from 56.3% to 49.1% – 12 percentage points and 11% percentage points, respectively, in the last four years.
On a shorter term, however, the equalisation was smaller as, for instance, between 2019 and 2020, the median gender pay gap narrowed by 5%, and by 9% for bonuses.
Helena Morrissey, chair of the Diversity Project, said: “With the gaps still outlandishly high, the data makes for a disappointing read for those of us working to improve the representation of women in fund management. However, I’m encouraged by the commitment to gender balance particularly at a chief executive level, and by the actions many organisations within our industry are taking.
“What we’ve observed is promising; firms have become much bolder and more innovative in their attempts to solve a long-standing problem. We’ve seen roles with more in-built flexibility, better use of data to drive change, new policies such as gender-neutral parental leave and diversity and inclusion championed at the very top.
“These are not ‘around the margins’ efforts; they really are aimed at changing a system that has clearly fallen short in attracting, developing and retaining female talent. I’m confident that if more firms make design changes like these, the gender gap – and pay gaps – will soon start to reflect these steps.
“I hope that these and other examples of bold, effective measures will inspire other firms to raise their game. The Diversity Project has set two targets: to halve the gender pay gaps and reach 30% female fund managers by 2030.
“When we mooted them, the only criticism we received was that they weren’t ambitious enough. It’s time to translate ambition into action.”