Is there still a gender pay gap in investment banking ?

Business Woman

Emolument.com has examined salary and bonus data from 1,836 employees working in front office Investment Banking & Markets jobs in London.

The findings reveal that:

Women are paid less than men at all levels and the gap starts early with a 10-16% gap even at analyst and associate level in favour of male bankers.

The widest gap is at Vice President (VP) level (VPs are generally 27-32 years old), when it reaches as staggering 27%.

For women still in the business at Managing Director (MD) level the gap narrows with female remuneration packages close to their male colleagues.

The ratio of men to women working in front office investment banking rises from around 5:1 at the lower levels (analyst, associate and VP) to 17:1 at MD level

Key takeways

Women are still paid significantly less than men in investment banking at all levels of seniority.

Women are most at a disadvantage at VP level, which happens to match the average UK childbearing age (29 years old).

At the most senior level (MDs) women bankers are paid largely in line with their male counterparts, indicating that female leadership is acknowledged and rewarded, despite the small proportion of female MDs.

The proportion of women in investment banking remains extremely low, and declines dramatically at senior levels

Commenting on the data, Robert Benson, CEO, Emolument.com said, 'Despite the continued focus on pay equality and the drive to increase the number of women in senior roles, our data suggests that the investment banking industry still has a long way to go. The figures reveal a shocking lack of both female representation and pay equality which will do nothing to improve the already poor image of the industry amongst the general public'.

Source - Emolument.com

Register for Financial Markets News Alerts