Recent analysis by EY has revealed that the gender pay gap for non-executive board members in Europe's financial services sector has widened to 36% in 2023, up from 31% in 2019. This alarming trend highlights that women are frequently assigned to less significant roles and possess less C-Suite experience compared to their male counterparts [aaddda8a]. Kate Grussing of Sapphire Partners has described this widening gap as a 'red flag' for the industry, emphasizing the urgent need for change [aaddda8a].
In response to the ongoing gender disparity, the European Commission has set a deadline of June 2026 for firms to achieve 40% female representation on their boards. However, current statistics indicate that 28% of the firms analyzed are falling short of this target [aaddda8a]. Furthermore, it has been reported that female committee chairs earn only half of what their male counterparts make, underscoring the systemic inequalities present within corporate governance [aaddda8a].
Tara Cemlyn-Jones of the initiative 25×25 has pointed out the insufficient number of female appointments to executive roles, which contributes to the persistent pay gap and lack of representation at the highest levels of decision-making [aaddda8a]. In contrast, the gender pay gap in the United States and Canada has narrowed to just 5% in 2023, indicating a more favorable trend in North America compared to Europe [aaddda8a].
This situation is further complicated by the ongoing discussions surrounding gender budgeting and the implementation of policies aimed at promoting gender equality in various sectors. The Philippine Commission on Women (PCW) is preparing to release a care economy policy framework that addresses unpaid care work predominantly performed by women, which may provide insights into how similar frameworks could be beneficial in Europe [06e8eb3f]. As the EU continues to grapple with these issues, the need for effective gender-responsive budgeting and policies becomes increasingly critical to ensure equitable opportunities for women across all sectors [9f98582d].