Gender pay gap widens across European financial services boardrooms despite rise in remuneration for female non-executive directors (2025)

Gender pay gap across European financial services boardrooms rose from 31% to 36% between 2019 and 2023 for non-executives, while it narrowed from 7% to 5% across North American boardrooms
- In Europe, male directors received over $100k more than their female counterparts in 2023, while in North American the gap is just over $16k
North American non-exec board directors were paid 38% more than European peers in 2023, due to equity or stock option awards in compensation package, a practice that is virtually non-existent in Europe
Within Europe, non-exec directors with c-suite or sustainability experience receive significantly higher remuneration than those with other skillsets

The gender pay gap across European financial services boardrooms increased five percentage points between 2019 and 2023, from 31% to 36%, according to the latest EY European Financial Services Boardroom Monitor, which incorporates new analysis on the most recently reported non-executive (non-exec) director remuneration.

The difference in the overall remuneration of men and women across Europe’s financial boardrooms within the four-year period increased despite a rise in the absolute level of pay awarded to female non-exec directors over the period.

North American non-exec directors were found to have received significantly higher overall remuneration, despite European non-exec directors receiving higher average fixed fee compensation. This is due to North American directors receiving equity and stock options in addition to their fixed-fee compensation, which UK and EU boards do not offer for independence and objectivity reasons.

Omar Ali, EY Global Financial Services Leader, comments: “Competition for boardroom talent is high and increasingly global, and remuneration is becoming a more prominent focus. Gender representation across Europe’s financial boardrooms is moving slowly in the right direction, but it still remains far from equal. Data shows that whilst more men sit on committees and occupy more chair roles than women, the imbalance in pay between male and female peers is stark and concerning.

“Firms across North America lag European counterparts in appointing women to their boardrooms but, when they do, remuneration is on a much more level playing field. Addressing both imbalances will be increasingly key for firms across the global sector.”

European and North American non-exec board director gender pay comparisons

Between 2019 and 2023, average remuneration for female non-exec board directors across European financial services firms increased by 12%, from US$164,584 in 2019 to $184,477 in 2023. During this time, remuneration for male non-exec board directors increased at a higher rate of 21%, rising from $238,706 in 2019 to $287,994 in 2023.

By comparison, over the same period, the gender pay gap across the boardrooms of the largest North American financial services firms narrowed two percentage points, from 7% to 5%.

Remuneration awarded to female non-exec board directors across North American financial services firms increased by 13%, from $287,465 in 2019 to $324,250 in 2023. Pay awarded to male non-exec board directors increased at a slower rate of 10%, from $309,392 in 2019 to $340,481 in 2023.

In 2023, female directors tracked across European financial boardrooms earned $64 for every $100 earned by male peers, compared with $69 for every $100 earned by male directors in 2019, representing a five-percentage point increase in the gender pay gap.

Gender splits within European and North American boardrooms

The gender split (as at the end of 2024) across directors of European financial services firms stands at 43% female and 57% male. The latest publicly available Data for North American firms shows that at the end of 2023, board-level female representation was seven-percentage-points lower, at 36% female and 64% male.

Twenty-eight percent of European financial services firms currently have below 40% female representation at board level. This represents a 3-percentage point fall vs the end of 2023, when 31% of boards had under 40% female representation.

The EY Boardroom Monitor finds that the gender split of sub-committees was majority male at the end of 2023. In Europe, committees were split 45% women to 55% men, and in North America the split was 37% women to 63% men. Despite this, at a macro level, the gender pay gap on committees is larger within Europe, where female committee chairs earned 50% of their male counterparts, and female committee members earned 75% of their male counterparts, whereas in North America both female committee chairs and members earned 97% of their male counterparts.

The data shows that at aggregate male directors hold more committee roles per individual than their female peers, which accounts in part for men receiving a higher overall remuneration than women.

North American non-exec directors receive higher overall compensation than Europeans, but fixed-fee remuneration is higher in Europe

Average remuneration across North American financial boardrooms was higher than European boardrooms in every year from 2019 to 2023.

In 2019, North American non-exec board directors were paid 43% more than their European counterparts. Boardroom remuneration across the sector in North America averaged $302,814 per director, versus $212,360 across Europe’s financial boardrooms.

In 2023, non-exec board directors across North American financial services firms were paid 39% more than peers in Europe, earning $334,707 per director versus $242,715, respectively.

Female non-exec board directors at North American financial firms earn 13% more than male non-exec board directors at European financial services firms, according to the latest available data. In 2023, remuneration for female non-exec board directors at North American firms averaged $324,250, versus $287,994 for male non-exec directors at European firms.

Non-cash remuneration, including equity and options awards, was found to be a major component of overall remuneration awarded to North American financial services non-exec board directors. It is a practice that is virtually non-existent across European boards, as the region’s corporate governance codes discourages non-exec directors from receiving any variable pay in order to maintain independence and objectivity.

In 2019, 54% of remuneration awarded to non-exec board directors across North American financial firms was structured in non-cash terms through equity or stock option awards, rising to 56% by 2023. While European non-exec board directors receive less remuneration overall, average fixed-fee compensation is much higher than that awarded to their North American counterparts. In 2023, the average fixed-fee compensation for North American non-exec board directors, excluding non-cash elements such as equity or stock option awards, was $156,811, compared with $242,715 for European non-exec board directors.

Regional differences in non-exec boardroom remuneration at a sector level

While financial services firms in North America tend to have relatively higher market capitalisation and revenues than peers in Europe, the boards of North American financial firms are paid more on a relative basis even once this is adjusted for.

For every $1bn of revenue earned in 2023, North American financial services firms paid their non-exec board of directors an average of $407,794. By comparison, European financial services firms paid their non-exec board of directors 33% less – an average of $275,242 for every $1bn of revenue earned.

EY Boardroom Monitor data also evidences significant differences in aggregate boardroom remuneration across financial services subsectors. These sector-led trends are observable across both Europe and North America, even once adjusted for revenue.

In Europe, the non-exec directors of wealth and asset management firms are the highest paid, receiving an average $455,220 per $1bn of revenue in 2023. By comparison, non-exec directors across the banking sector were paid an average $289,008, and insurance non-exec directors $136,319, per $1bn of revenue.

Across North American firms, banking boardrooms are the highest earning across the financial sector. For each $1bn of revenues earned by banks, boards were paid $490,095; in the wealth and asset management sector, boards were paid $395,723; and in insurance, $223,439.

Regional differences in non-exec boardroom remuneration across Europe

Across European markets, board directors at Swiss financial services firms received the highest absolute pay in 2023, at $338,621 on median. Board directors at Spanish and UK firms were the next most well-remunerated, receiving $252,570 and $199,856 respectively, on median. In contrast, board directors at Norwegian, French and Belgian firms received the lowest pay in 2023, at $50,472, $83,941, and $110,534 respectively, on median.

Absolute levels of female remuneration across European markets follow a similar pattern. Female board directors at Swiss, Spanish and UK financial services firms received the highest overall pay in 2023, at $254,732, $246,491, and $191,000, respectively. Female board directors at Norwegian, French and Swedish firms received the lowest overall pay on median in 2023, at $60,141, $86,184 and $108,8883, respectively.

Swiss financial services firms have the widest board-level gender pay gap. The latest available data (2023) shows that male Swiss board directors are paid almost one and half times (149%) more than their female peers. Median pay for male Swiss board directors was $380,020, compared to $254,732 for female board directors.

Non-exec directors with c-suite or ESG skillsets earn highest

Levels of remuneration across Europe’s financial boardrooms also vary according to directors’ skillsets and professional backgrounds.

Between 2019 and 2023, non-exec directors across Europe’s financial boardrooms with prior experience in a c-suite role were awarded higher remuneration every year. Most recently, in 2023, non-exec board directors with c-suite experience were paid an average of $260,487, compared to $226,119 to those without c-suite experience.

A similar trend is evident among board directors with sustainability expertise; in 2023, non-exec board directors with sustainability expertise were paid an average of $301,098, compared to $234,702 to those without sustainability expertise.

However, across both areas of experience, male board members are paid more, on average, than female peers with similar experience.

Between 2019 and 2023, male non-exec board members with c-suite experience were paid an average $284,065 annually, compared to $164,696 for female non-exec board members bringing equivalent experience to the role. Over the same period, men with sustainability expertise were paid an average $429,868 each year, compared to $167,587 to women with equivalent experience.

Omar Ali, EY Global Financial Services Leader, concludes: “Compensation for non-executive directors across Europe’s financial boardrooms lags behind peers governing North American firms, creating a transatlantic pay gap. Analysis shows that this hinges on the practice of structuring equity and/or options as a major component of total compensation, which is prominent in North America, but not in Europe, where corporate governance codes and regulatory frameworks prioritise independence over shareholder alignment.

“In conversations with chairs across Europe, dependence on income derived through a board role is often described as a ‘red flag’ in the appointment process – yet the challenge of international competition is changing the context. Chairs acknowledge that balancing and aligning independence and equity-related incentivisation with shareholders is not clear cut, and that it is an evolving challenge that will warrant increasing consideration in the appointment and retention process.”

ENDS

Quick remuneration data overview as at December 31st 2023 (latest reported data)

Total number of firms tracked across Europe: 87

Total number of European non-executive board directors monitored: 815
- Total number of female non-executive board directors monitored: 356
- Total number of male non-executive board directors monitored: 459

Total number of firms tracked across the United States and Canada: 86

Total number of North American non-executive board directors monitored: 834
- Total number of female non-executive board directors monitored: 294
- Total number of male non-executive board directors monitored: 540

Quick Boardroom Monitor data overview as at December 31st 2024

Total number of firms tracked across Europe: 90

Total number of European board directors monitored: 1093
- Total number of female board directors monitored: 467
- Total number of male board directors monitored: 626

Total number of European board director exits in 2024: 137

Total number of new European board directors in 2024: 134

Notes to editors:

This is the sixth launch of the EY European Financial Services Boardroom Monitor.

Remuneration data reflects the latest reporting period to 31^st December 2023, and only covers non-executive directors.

Data on the experience, background, and skillsets of board members (excluding remuneration data) across European financial services firms is current as at 31^st December 2024.

The EY European Financial Services Boardroom Monitor does not track the race and ethnicity of board members, as there is no standardized format for directors to disclose against.

About the EY Boardroom Monitor

The EY Financial Services European Boardroom Monitor tracks the experience, background, and skillsets of board members across a defined universe of financial services firms to create a broad picture of the gaps in expertise and possible pressure points within the listed European financial services markets.

The EY Financial Services European Boardroom Monitor tracks and analyses data across a wide range of factors, including gender and age, as well as professional experience and skills.

The EY Financial Services European Boardroom Monitor is comprised of disclosable, publicly available data on board appointments at listed banks, wealth and asset managers, FinTechs and insurers across the UK, Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Spain, Sweden and Switzerland, using the MSCI European Financials Index, with additional data this year from the United States and Canada, using North American-listed constituents of the MSCI World Financials Index, as the core universes.

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