Banking is a traditionally masculine industry, but plenty of women survive and thrive within it. It’s intriguing, however, that two of the most prestigious names in the industry are also two of the worst for gender pay disparity.
The Gender Pay Gap in Investment Banking
Using the UK Government‘s gender pay gap reporting tool, we’ve looked at disparities in both salaries and bonuses. Goldman Sachs and JPMorgan sit near the bottom of the list for both.
Salaries paid per head to female staff at ‘Goldman Sachs International’ are half that of their male counterparts. Bonuses per head are worse, at just over a third. ‘JPMorgan Securities PLC’ doesn’t fare much better, with women earning 39p in bonuses for every pound a man earns. ~44% of Goldman employees are women, according to the report, whereas 36.2% of JPMorgan staff are women.
The UK entities of rival US banks fare much better. Salaries per head at BofA and Morgan Stanley are 86% and 83% of what men earn, respectively. Bonuses for both are a bit lower, however, sitting at around two thirds of the male bonus average.
That being said, Goldman Sachs still ranks pretty highly among contemporaries for its volume of women in the top quartile of earners. 25% of the top 25% at Goldman are women, compared to 16.6% at JPMorgan. None of the major banks have more than 30% of women in their top quartile of earners, save for boutique bank Rothschild.
It’s worth considering, as well, that firmwide average pay varies across the banks. You can check out an article looking at pay figures for analysts, associates and VPs across these banks here.
The Gender Pay Gap In Fintech
Fintech might be a newer, more progressive industry than banking, but it doesn’t fare significantly better for gender pay disparity. Of the eight analyzed, none had a disparity of more than 30% for average hourly pay, but none did better than 10%.
Stripe, one of the top paying fintechs, is also one of the more equitable; hourly pay per head for women in 2024 was close to 90% of male pay per head. Revolut was closer to 85%. Women made up 39.3% and 25.7% of their respective headcounts.
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Source: efinancialcareers.com
