New requirements by the U.K. government are shining a bright light on the gender pay gap across a range of industries, including asset management.
The issue gained prominence earlier this month, when companies with more than 250 U.K. employees submitted government-mandated reports on compensation by gender. The reports, among other things, identify the average hourly pay differential between male and female employees. The reports also include a look at gender representation in pay quartiles and bonus payments.
The U.K. reports follow similar efforts by other countries, including Germany and Norway, and the European Commission.
The commission is promoting programs that would see all businesses achieve a target of 40% female senior and middle managers through a number of initiatives, including its Strategic Engagement for Gender Equality program. That program, starting in 2016, focused on amending laws to ensure businesses would pay men and women equally for the same work. The commission also enacted social policies around child care across industries to help businesses achieve better gender equality in decision-making roles.
Germany, also in 2016, implemented a law that aims to ensure equal access for women and men to executive positions in private and public companies.
Stock-listed companies have to appoint women to their boards, as vacancies appear, until the boards become one-third female. Also, some 3,500 German private companies are obliged to set targets defining how they will increase the number of women on company boards, as well as upper and lower management levels.
Money managers interviewed by Pensions & Investments acknowledge the U.K. reporting requirements highlight the need for increased gender diversity at all levels of an organization.