The gender pay gap for directors has increased from 19% last year to 22% and in some sectors is as high as 26%.
In an analysis of 3,945 jobs from around 1,200 organisations, the Institute of Directors (IoD) annual Directors rewards survey by Croner Reward found that the biggest gaps appeared in the service and voluntary sectors where female pay is as much as 26% below that of their male counterparts. In the service sector this means an average salary of £56,933 for a female director compared with £70,657 for a man. The smallest pay gap was 5% in the public sector.
The financial services sector has improved, and is now 9% compared with 14% in last year’s survey and 35% two years ago.
Miles Templeman, director general of the IoD, said: “Unless we can achieve equality of opportunity in the near future, we will ineviatble face further regulation in this area. The only way to rebut this is for business to act quickly. It is wholly unacceptable in this day and age that it appears that women in comparable positions do not receive the same rewards as their male counterparts.”
The survey also found that the average increase for directors was 3.5% and basic pay for a managing director of a small company (up to £5m) is £65,000. In a large company with a turnover between £50m and £500m, a managing director could expect to earn £141,440. Around a quarter of directors were found to be working in excess of 55 hours a week and just 20% of directors in medium and large companies take their full holiday allowance.