A recent investigation has found that female FTSE 100 directors on average earn 73 per cent less than their male counterparts.
Research by New Street Consulting Group found that the average pay for female directors stands at £237,000, compared to £875,900 for male directors.
The data reveals that the gender pay gap at the top 100 companies in the UK is markedly worse than the national average, which sees women receive 15.5 per cent less.
It is thought that the large pay gap is due to 91 per cent of female directors at FTSE 100 companies holding non-exec roles rather than executive.
Claire Carter, Director at New Street Consulting Group, commented: “Great progress has been made in bringing more women onto boards, but this research shows there is much more to do,”
“Focusing solely on the percentages of directors that are women is not enough when trying to approach equality,” she added.
The pay gap between executive directors is even more stark. Average pay for female execs comes in at £1.5m, while it is £2.5m for males.
Recent studies have shown that having females on boards has been associated with better financial performance further down the line. A report by the FRC estimates that having at least one woman on the board could increase stock prices by 10 per cent in just one year.
“Most businesses want to end the old boys club that exists at the top. The key to doing that will be ensuring that women have more executive responsibilities and are trained and prepared properly for taking on that responsibility,” Carter said.
“Ultimately the catalyst for change lies with the boards themselves.
It will be a case of their examining whether there are any barriers that are preventing females from reaching the very top at their organisation, and if there’s anything they can do to help overcome these.”