Gender imbalance, pay gaps persist in EU banking leadership
The European Banking Authority (EBA) has published a report revealing persistent gender imbalance and significant pay gaps in the management bodies of EU banks and investment firms. The 2024 data shows that male directors continue to receive higher remuneration than their female counterparts.
Women underrepresented in top roles
The EBA's 2024 benchmarking report highlights a continued lack of gender diversity in EU banking leadership.
While 81.20 percent of institutions now have diversity policies, only 67.24 percent include specific gender representation targets.
A significant 45.87 percent of institutions report no female executive directors (EDs), a figure that includes approximately one-third of large institutions.
Furthermore, women hold only 12.37 percent of CEO positions among the 792 surveyed, a modest increase from 11.32 percent in 2021.
In the supervisory function, women fare slightly better, holding 32.48 percent of non-executive director (non-ED) positions, up from 27.75 percent in 2021.
Despite some improvement, the gender balance among newly recruited directors remains insufficient, particularly for executive roles.
Unjustified pay disparities
The report also reveals persistent gender pay gaps within management bodies.
On average, male executive directors (excluding CEOs) receive 9.82 percent higher total remuneration than their female colleagues, a slight increase from 9.43 percent in 2021.
For non-executive directors, the average pay gap stands at 2.18 percent, calculated based on median remuneration, a reduction from 5.90 percent in 2021.
These findings underscore ongoing deficiencies in the application of gender-neutral remuneration policies across the EU banking sector.
The EBA emphasizes the need for targeted, institution-specific corrective measures to address these unjustified pay disparities and ensure compliance with existing EU requirements, urging competent authorities to continue assessing remuneration policies for gender neutrality.
Stagnation at the top
Despite years of focus, the EBA's latest report paints a stark picture of stagnation in gender equality at the top of EU banking.
The entrenched pay gaps and slow progress in representation underscore a fundamental failure in implementing effective, gender-neutral policies.
Regulators must enforce concrete measures to accelerate meaningful change, moving beyond mere monitoring.