Financial Boardroom Pay Gap Narrowed in 2025
The pay differential between European and North American financial services boardrooms fell to 10.5% in 2025.
Updated on Sept. 28, 2026 in Financial Services
Live Poll
Do you trust that pay gaps between international executive boards are narrowing for the right reasons?
The boardroom pay gap between European and North American financial services firms narrowed by 27% in 2025. This reduction resulted in a remaining pay differential of $36,699 between the two regions.
Why it matters
The narrowing gap reflects divergent growth rates, with European boardroom compensation rising 10% while North American pay increased by 4.5%.
European financial services boardroom pay rose 10% in 2025, compared to a 4.5% increase for North American counterparts. European female non-executive directors earned 38.9% less than male peers, while the global gender remuneration gap reached 22.4%.
The details
European male non-executive directors received an average of $381,894 in 2025, while female non-executive directors in North America earned an average of $335,073. Despite the narrowing gap between the two regions, internal gender-based disparities remain significant.
Timeline
2021: The global gender remuneration gap began to rise toward its 2025 level.
2024: The pay differential between European and North American boardrooms stood at 15%.
2025: Boardroom compensation metrics showed European pay rising by 10%.
Market Landscape
This regional convergence in boardroom compensation occurs against the backdrop of a widening global gender remuneration gap, which grew from 17.1% to 22.4% over four years. Firms are balancing these regional salary adjustments while struggling to close persistent gender-based pay inequities.
These shifts in boardroom compensation signal broader trends in corporate budget allocation for executive talent. Investors and clients should monitor how these salary growth rates influence the operational costs and leadership stability of major financial institutions.
The takeaway
While regional pay gaps for top-tier directors are closing, the global gender pay disparity within financial services continues to widen. Organizations face ongoing pressure to address these internal discrepancies despite market-driven adjustments in base compensation.
Further reading
For broader trends, explore Financial Services.
Source note: This article includes information reported by Employee Benefits.
Live Poll
Do you trust that pay gaps between international executive boards are narrowing for the right reasons?
