Gender inequality in the world of finance: Only 10% of top earners are female

Gender inequality in the world of finance: Only 10% of top earners are female

The pay gap between male and female top earners in the European financial sector remains clearly visible, a recent study shows. Less than 10 percent of people who earned more than 1 million euros in 2022 were female. More specifically, only 183 of 2,017 top earners were female, according to data from the European Banking Authority.

Efforts to promote diversity in the financial industry have been slow, even as government agencies around the world are taking steps to reduce the gender pay gap. In the European Union, legal steps have been taken to increase the proportion of women on supervisory boards. In addition, companies with at least 100 employees should act more transparently when it comes to salary comparisons.

Data from the European Banking Authority shows that the highest-paid bank worker in the EU earned €13.1 million, with the gender aspect striking when analyzing the top earners. Investment banking, for example, had only 8% female representation among top earners. Despite an almost 20% increase in high earners at banks and investment firms in 2022, the barriers to greater gender equality in the financial industry became clear.

Based on Bloomberg calculations, corporate functions and independent control functions had the highest proportion of female top earners, while the proportion in investment banking was lower. Developments regarding the pay gap and gender diversity in the financial industry continue to highlight the urgency of creating structures that enable equal opportunities and fair pay for all.