Friday 5th November 2021
Study proves salary advantage
On the top floor, women earn better than men
Men get more salaries than women, the gender pay gap still exists. But not everywhere, as a study shows. On the top floor of listed companies, women have an advantage over their male colleagues. However, the reason is not necessarily positive.
According to a study, women in the top floor of listed companies in Germany significantly increased their salary advantage over men in the past year. The total remuneration of female managers on the board of directors of companies in the Dax family rose by an average of 8.2 percent to 2.31 million euros compared to the previous year, according to an analysis by the consulting and auditing company EY. Male members of the committee had to be satisfied with an average increase of 1.6 percent to 1.76 million euros. The wage advantage of women was 31 percent, according to the information, bigger than ever before.
“The proportion of women on the board of directors is still very low – and is only increasing very slowly. After all, female board members are better off than their male colleagues, at least when it comes to remuneration,” said EY partner and board member specialist Jens Massmann. He sees the growing interest of companies in attracting women to the top floor as an important reason. Since candidates are scarce, their market value increases – and so does their remuneration. “Highly qualified female top managers currently have a good negotiating position,” argued Massmann.
The trend was particularly evident in the top German stock market league, the Dax. While men had to accept lower salaries, the average total direct remuneration of women on the board of directors rose by around 9 percent. On average, top female managers earned 3.19 million euros, male board members earned 2.71 million euros. Even in companies with the index for smaller values, the SDax, women expanded their salary advantage. They earned an average of 1.14 million euros (up 6.7 percent). Her colleagues received 987,000 euros (down 1.1 percent).
In the MDax, on the other hand, the women on the executive board lagged behind their colleagues. Their average total direct remuneration fell by 5.8 percent to 1.36 million euros. Men, on the other hand, earned an average of 1.47 million euros, 11 percent more than a year earlier.
CEOs were not included in the comparison, as there are hardly any women in this position and the chairpersons earn significantly more than other members of the board. The total direct remuneration consists of the fixed annual salary and the variable remuneration granted in the year, such as bonuses.