Whatever the reasons for the gender gap in CEO pay, it needs to change

It’s the eternal pink and blue divide.

It’s the eternal pink and blue divide. The corporate gender pay gap in the UK and for that matter across the globe has been heavily debated and there are myriad opinions around why men get more hefty pay packages than women and, more importantly, why men hold most of the top jobs in the industry.

The divide has come into focus again with results of a new salary research by the Chartered Management Institute (CMI) revealing that men actually earn £141,500 more in bonuses than women doing the same role over the course of a working life.

According to the CMI research of 43,000 managers, male executives, on an average, get double the amount of bonus in comparison to women, with extra payments standing at £6,442 in 2012 compared with £3,029. Women directors' average bonus is £36,270, while men receive £63,700, and at more senior levels, the pay gap for both basic and bonuses increase, according to CMI.

There is no doubt that there are more male executives holding top jobs with fat salaries than there are women doing the same in the UK. Only last month a proposal by the Conservative Women's Forum, a group of female MPs investigating why too few women rise to the top of Britain's companies, said stats on the number of women firms employ at each level, the number of employees promoted by gender and the average pay gap at each rank, should be made public if "Britain is ever to get to the bottom of its "women's problem" in business".

However the problems aggravating the pay gap between the sexes are, at one level, rudimentary and age old. Societal biases and just a leak in the women talent pool are the real problems here, as they have been for decades.

A recent Harvard study of workplace ambitions showed fewer women aspire to top jobs than men. According to CMI, at junior levels, women actually earn £989 more than men on average and make up 64.3 per cent of the proportion of staff. But by middle management they fall behind both in terms of salary and representation, receiving £1,760 less than men and filling less than 44.3 per cent of the roles.

Childcare and family life – both of which women have been critisised for prioritising over their work lives – are basic realities that do exist and even may push the mentality that men will be more dedicated to the professional demands of a company in comparison to women who have a home to run. Also the maternity leave periods often become gaps in women’s career roadmaps. 

Things have gotten better over the years though. A Pew Research Center study released in June revealed that 23 per cent of women earn more than their husbands, up from 4 per cent who did in 1960. According to a survey carried out by Southampton University recently, the few female chief executives at FTSE 350 companies are paid on average £1.8m, compared to £1.3m for men, and the close links between performance and pay at public companies suggested that women bosses were delivering better results. The study also found that female chief executive pay had gone up by 9.3pc per year on average over the last five years, compared to 5.1 per cent for men.

Golablly, we have the likes of Indra Nooyi, Chairman and CEO, PepsiCo, Marissa Mayer, CEO, Yahoo, Ginni Rometty, President and CEO, IBM, Anne Sweeney, Co-Chair, Disney Media Networks, and President , Disney/ABC Television Group, Safra Catz, President and CFO, Oracle, Ursula Burns, Chairman and CEO, Xerox, to name some heavyweights who are turning the tide.

However the fact that when Beyonce sings "all the honeys makin’ money…throw your hands up at me" we can actually pick out names from a women-power-list of those who can wave back is the worrying bit. When it comes to men, that’s not a practical thought.

In the UK particularly, although women who run public companies may earn more than their male counterparts, they definitely represent a minority. Women only account for 5.6 per cent of executive directorships, despite the government target of 25 per cent. In fact Boardwatch UK recorded the first fall in the percentage of women on company boards, earlier in the year, since the figures were first complied in 1999.

As long as there are biases and "dirty old men" at share holder meetings telling the likes of Marissa Mayer that they are attractive instead of anything related to the job they do, or there are stereotypes that women will always prioritise family life over their jobs, women gaining positions of real power on the corporate ladder is going to be slow. The ladies need to be more proactive themselves about where their career trajectory is going, how their salaries and job descriptions compare to their male counterparts and they must speak up when it comes to getting a bonus or promotion if there is a valid case for it. They have to be the change they want to see. That maybe a cliché but there’s a reason why cliché’s are true.

On the other hand perceptions too need to change. A female or male boss is irrelevant when he or she is the best person to do the job and that’s how companies must approach their employees, alongside also actively working towards bridging a lopsided gender employment scale. Even after that, we may not end up with identical labour market outcomes for men and women. It will be of crucial importance then how the labour market rewards different types of work. 

Just recently, Bank of England Governor Mark Carney admitted to a “striking lack of top female economists” and pledged to create a pool of candidates for its rate-setting committee who will eventually become good enough to be the first female governor in the Bank’s 300-year history. He said the Bank has to “grow” top female economists all the way through the ranks. That attitude will go a long way in terms of awareness and equality. I’m with Carney.

I'm with Carney. Photograph: Getty Images

Meghna Mukerjee is a reporter at Retail Banker International

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After Strictly, I'd love to see Ed Balls start a new political party

My week, from babbling at Michael Gove to chatting Botox with Ed Balls and a trip to Stroke City.

If you want to see yourself as others see you, write a weekly column in a national newspaper, then steel yourself to read “below the line”. Under my last offering I read the following comment: “Don’t be angry, feel pity. Her father was a member of the European Parliament. Her older brother has been a member of parliament, a cabinet minister, a secretary of state, a historian, a mayor of London. Her younger brother is a member of parliament and minister for universities and science. She has a column in the Daily Mail. Can you imagine how she feels deep inside?” Before I slammed my laptop shut – the truth always hurts – my eye fell on this. “When is Rachel going to pose for Playboy seniors’ edition?” Who knew that Playboy did a seniors’ edition? This is the best compliment I’ve had all year!

 

Three parts of Michael Gove

Part one Bumped into Michael Gove the other day for the first time since I called him a “political psychopath” and “Westminster suicide bomber” in print. We had one of those classic English non-conversations. I babbled. Gove segued into an anecdote about waiting for a London train at Castle Cary in his trusty Boden navy jacket and being accosted by Johnnie Boden wearing the exact same one. I’m afraid that’s the punchline! Part two I’ve just had a courtesy call from the Cheltenham Literature Festival to inform me that Gove has been parachuted into my event. I’ve been booked in since June, and the panel is on modern manners. De mortuis nil nisi bonum, of course, but I do lie in bed imagining the questions I hope I might be asked at the Q&A session afterwards. Part three There has been what we might call a serious “infarction” of books about Brexit, serialised passim. I never thought I would write these words, but I’m feeling sorry for the chap. Gove gets such a pasting in the diaries of Sir Craig Oliver.

Still, I suppose Michael can have his own say, because he’s returning to the Times this week as a columnist. Part of me hopes he’ll “do a Sarah Vine”, as it’s known in the trade (ie, write a column spiced with intimate revelations). But I am braced for policy wonkery rather than the petty score-settling and invasions of his own family privacy that would be so much more entertaining.

 

I capture the castle

I’ve been at an event on foreign affairs called the Mount Stewart Conversations, co-hosted by BBC Northern Ireland and the National Trust. Before my departure for Belfast, I mentioned that I was going to the province to the much “misunderestimated” Jemima Goldsmith, the producer, and writer of this parish. I didn’t drop either the name of the house or the fact that Castlereagh, a former foreign secretary, used to live there, and that the desk that the Congress of Vienna was signed on is in the house, as I assumed in my snooty way that Ms Goldsmith wouldn’t have heard of either. “Oh, we used to have a house in Northern Ireland, Mount Stewart,” she said, when I said I was going there. “It used to belong to Mum.” That told me.

Anyway, it was a wonderful weekend, full of foreign policy and academic rock stars too numerous to mention. Plus, at the Stormont Hotel, the staff served porridge with double cream and Bushmills whiskey for breakfast; and the gardens at Mount Stewart were stupendous. A top performer was Jonathan Powell, Tony Blair’s former chief of staff, who runs his own conflict resolution charity. Powell negotiated the Good Friday Agreement and also has a very natty line in weekend casual wear. Jeremy Corbyn has said he wants a minister for peace, as well as party unity. Surely “Curly” Powell – a prince of peace if ever there was one – must be shoo-in for this gig.

PS: I was told that Derry/Londonderry is now known as “Stroke City”. I imagined stricken residents all being rushed to Casualty, before I worked it out.

 

On board with Balls

Isn’t Ed Balls bliss? From originating Twitter’s Ed Balls Day to becoming Strictly Come Dancing’s Ed Balls, he is adding hugely to the gaiety of the nation. I did the ITV show The Agenda with Tom Bradby this week, and as a fellow guest Balls was a non-stop stream of campery, charleston steps, Strictly gossip and girly questions about whether he should have a spray tan (no!), or Botox under his armpits to staunch the sweat (also no! If you block the armpits, it will only appear somewhere else!).

He is clever, fluent, kind, built like a s*** outhouse, and nice. I don’t care that his waltz looked as if his partner, Katya, was trying to move a double-doored Sub-Zero American fridge across a shiny floor. After Strictly I’d like to see him start a new party for all the socially liberal, fiscally conservative, pro-European millions of us who have been disenfranchised by Brexit and the Corbynisation of the Labour Party. In fact, I said this on air. If he doesn’t organise it, I will, and he sort of promised to be on board!

 

A shot in the dark

I was trying to think of something that would irritate New Statesman readers to end with. How about this: my husband is shooting every weekend between now and 2017. This weekend we are in Drynachan, the seat of Clan Campbell and the Thanes of Cawdor. I have been fielding calls from our host, a type-A American financier, about the transportation of shotguns on BA flights to Inverness – even though I don’t shoot and can’t stand the sport.

I was overheard droning on by Adrian Tinniswood, the author of the fashionable history of country houses The Long Weekend. He told me that the 11th Duke of Bedford kept four cars and eight chauffeurs to ferry revellers to his pile at Woburn. Guests were picked up in town by a chauffeur, accompanied by footmen. Luggage went in another car, also escorted by footmen, as it was not done to travel with your suitcase.

It’s beyond Downton! I must remember to tell mine host how real toffs do it. He might send a plane just for the guns.

Rachel Johnson is a columnist for the Mail on Sunday

This article first appeared in the 29 September 2016 issue of the New Statesman, May’s new Tories