Male managers' bonuses are double those of women

Aug 20 2013 by Brian Amble Print This Article

British men in management positions stand to earn over £141,500 ($220,000) more in bonuses over the course of their working lifetimes than women doing the same jobs, a new report has found.

An analysis by the CMI (Chartered Management Institute) and salary specialists XpertHR has revealed that the male managers earned average bonuses twice as large as those of their female counterparts over the past 12 months – £6,442 ($10,000) compared to £3,029 ($4,700). Moreover, the average salary of male managers is almost 25 per cent larger too, (£38,169 compared to £29,667).

The figures, taken from the annual National Management Salary Survey, which includes data from more than 43,000 UK workers, mean that men stand to earn over £141,500 ($220,000) more in bonuses than women doing the same role over the course of their working lifetime.

Although women at junior levels earn £989 ($1,500) more than men on average, the bonus pay gap increases with each rung of the management ladder. At middle management level, for example, women receive annual bonuses that are an average of £1,760 ($2,750) less than men.

At senior levels, the difference is even more pronounced. Female directors' bonuses average £36,270 ($56,600), barely more than half the average pay-out enjoyed by male directors in the last year – £63,700 ($99,400).

Moreover, only 42pc of these women at director level banked a bonus last year, compared with 52pc of their male colleagues.

These UK findings come just a week after a study released by Bloomberg found that the best-paid female executives in the US earn an average of 18 per cent less than their male peers.

"Despite genuine efforts to get more women onto boards, it's disappointing to find that not only has progress stalled, but women are also losing ground at senior levels," said Ann Francke, CMI Chief Executive.

"Women are the majority of the workforce at entry level but still lose out on top positions and top pay. The time has come to tackle this situation more systemically."

Taking a career break to have children is a key factor in the pay gulf, she added. "When women return to work after maternity leave they are treated as if they aren't all there."

In common with a host of other research across the developed world, the CMI analysis found that the 'executive pipeline' continues to show a steep drop off in female talent from middle-management level onwards. While more women than men continue to embark on executive careers - 64 per cent of entry-level staff are female - at middle-management level, just 44 per cent are women and fewer than a quarter of board directors (24 per cent) are female.

Citing the strong correlation between financial performance and gender diversity, Ann Francke added: "Diversity delivers results. If organisations don't tap into and develop their female talent right through to the highest levels, they will miss out on growth, employee engagement, and more ethical management cultures. And that's not good for business."