The gender pay gap may not close for more than 100 years. Experts look at how it’s calculated and interpreted for women in the workforce.
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In a vivid illustration of the gender pay gap in the banking industry, Barclays pays its female employees at its investment banking division, Barclays International, about half of what that division’s male employees earn.
In its 2017 annual report released this week, the United Kingdom-based company revealed that women on average are paid 48% as much as men in that division, illustrating the disparity of women in higher-paying senior positions at the bank’s unit for corporate and international banking clients.
The gender pay gap for bonuses is even more stark: Women receive discretionary bonuses that are 79% lower on average than men.
Women at Barclays Bank UK, which services retail and consumer customers and small to medium-sized businesses in the U.K., earn 26% less than men on average and receive bonuses that are 60% lower.
The bank looked at pay data across the company for 2017.
“We are confident that at Barclays, men and women across our organisation are paid equally for doing the same job,” Barclays CEO Jes Staley said in a statement. .
The company says that even though female representation is growing, the pay disparity is a result of a higher proportion of women in more junior, lower paid jobs.
“The calculation does not take into consideration the role that an employee performs or the seniority of the employee,” the report says. “As a result, gender pay gaps are often driven by higher proportions of women than men in more junior, lower paid roles and fewer women than men in senior, more highly paid roles.”
The company overall has a global employment of 79,900 and women make up about 47%. Currently there is only one woman on the company’s 9-member group executive committee. Women make up only 15% of managing directors and 33% of vice presidents. Fifty-eight percent of lower-level associates are women.
The company says it is addressing the gender pay gap and has set a goal of 33% female representation on its board of directors and group executive committee and their direct reports by 2020.
Barclays is one of the first major banks to comply with new disclosure rules in the U.K., where all companies with 250 employees or more are required to report the differences in what men and women are paid by April 4.
The companies are required to publish their gender pay gap and a written statement on the government’s website.
The BBC reported that among the 1,047 companies that have reported so far, the government data shows that 74% of firms pay higher rates to their male workers, 15% pay more to female workers and 11% show no difference.
Other banks in the U.K. that have reported their gender pay gap include:
• The Bank of England: 21%
• Aldermore Bank: 30%
• TSB Bank : 31%
• The Royal Bank of Scotland: 37%
• Clydesdale Bank: 37%
• Lloyds Bank: 38%
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