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Female executives earn £423,390 less over their lifetimes than their male counterparts following identical career paths, according to new research by the Chartered Management Institute.
With the current gap between male and female average pay at management level standing at just over £10k, a woman entering an executive role aged 25 and retiring at 60 would take home pre-tax totals of £1,092,940. This compares to £1,516,330 for men.
Research by the CMI analysed salary and labour turnover data for over 38,000 people in executive roles in the UK. It showed that a male executive earned on average a basic salary of £40,325 over the 12 months to August 2012, compared to £30,265 for a female in the same type of role.
Women are also taking home less money when it comes to annual rewards. The survey found the average bonus for a male executive was £7,496, compared to just £3,726 for a female executive. The picture gets worse as women and men progress in their careers with 50% of males at director level receiving bonuses compared to only 36% of females.
Ann Francke, CMI chief executive, said: “A lot of businesses have been focused on getting more women on boards but we’ve still got a lot to do on equal pay and equal representation in top executive roles. Women make up almost three out of four at the bottom of the ladder but only one out of four at the top.
“This lack of a strong talent pipeline has to change, and fast. Allowing these types of gender inequalities to continue is precisely the kind of bad management that we need to stamp out. Companies are missing out on the full range of management potential at a time when we need to be doing everything we can to boost economic growth.”