Introduction
Financial services has long been known for its hypermasculine culture, but efforts are being made to attract top talent, including women. However, the gender pay gap remains a prevalent issue in the industry.
The Gender Pay Gap in Investment Banking
According to government-mandated gender pay gap disclosures in the UK, women in banking earn £0.73 for every £1 a man earns in salary and only £0.53 per pound in bonuses. Some firms like UBS and Barclays have shown more equity in pay, while others like Goldman Sachs and JPMorgan lag behind.
The Gender Pay Gap in Private Equity
In private equity, women earn £0.60 for every £1 a man earns in salary and a mere £0.48 per pound in bonuses. Blackstone has made strides in closing the gender pay gap for salaries but still lags behind in bonus payouts. European PE firms show less equity in pay compared to their US counterparts.
The Gender Pay Gap in Fintech
Women in fintech earn £0.82 for every £1 a man earns in salary but only £0.59 per pound in bonuses. While some firms like Starling Bank show more equity in bonus payouts, others like Revolut still exhibit significant disparities. Fintech has a higher percentage of women in the top quartile of earners compared to other sectors.
The Gender Pay Gap in Hedge Funds and Trading Firms
Women in hedge funds and trading firms earn £0.77 for every £1 a man earns in salary but just £0.47 per pound in bonuses. These sectors have a severe lack of high-earning women, with G-Research being a standout for its more equitable pay practices.
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