Bonuses: do we still not recognise equal pay for equal work?

There's a gender gap in top company bonuses.

Women in senior management are being paid bonuses that are only half those of men in identical positions, a survey by the Chartered Management Institute has found. You’ll find very few people in the UK today who would argue that all other things being equal, men deserve higher pay than women — a little top-up in recognition of their maleness — and yet the gender pay gap just won’t close. 

The gap between men and women’s pay cheques isn’t limited to bonuses, of course — across all sectors women are paid an average of 10 per cent less than men. 44.4 per cent of male graduates earn over £24,000, compared to only 30 per cent of women.

There’s a tendency to try and explain away these unfortunate statistics in terms of women opting-out of high-paid roles or choosing to work part-time once they’ve had children (although the 10 per cent pay gap refers to full time workers). Some people have tried to explain away the bonus gap by suggesting that men are more likely than women to be senior management in fields like finance, where bonuses across the board are far higher. 

While this might account for part of the gap, it can’t explain away the whole £141,500 in extra bonus payments a man can expect over his lifetime. This still points to the failing of UK business and industry to promote equality at every level of the work place, and the CMI’s findings are symbolic of a whole workplace culture that still can’t treat women as equal to men, and that frankly isn’t interested supporting women in work. 

The fact that we’re still no nearer to the modest target of ensuring that 25 per cent of FTSE 100 board members are women shows just how uninterested big companies are in changing the status quo.

One interesting aspect of the CMI’s findings is that the gender gap in bonuses widens at more senior levels. At entry level, women earn £989 more than men, but by middle-management they receive £1,760 less than men and at director level the gap widens to £15,561. 

It's not obvious what this means — will the newest generation of female entry-level employees cling on to pay parity more successfully than their predecessors? Are women’s bonuses suffering because they are having children and are less likely to put in the extra hours expected of senior management? Are senior management levels less women-friendly because we know there are fewer women at the top? 

Unless you’re happy with the conclusion that women do not deserve equal pay to men, we need to start answering these questions and holding blasé companies to account.

This piece first appeared on Spear's Magazine

Marissa Mayer. Photograph: Getty Images

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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