Responsible investment charity ShareAction has questioned several asset and wealth management companies in the UK on how they plan to eliminate gender pay disparity. These companies include Jupiter, Standard Life Aberdeen and Man Group.
An analysis conducted by Investment Week in April 2019 reveals that while the gender pay gap for all companies dropped from 14.5% to 12.7%, the financial services sector continues to have the highest pay gap at 26% and bonus gap 47% that favor men. In addition, only 9% of UK-based funds are led by a female manager with women representing only 10% of active portfolio fund managers globally.
Equal pay is a legal requirement under the 1970 Equal Pay Act and annual public reporting of gender pay gaps for companies with 250 or more employees is required under the legislation introduced in April 2017.
The Investment Association reported that its members have a median gender pay gap of 31%.
The number of asset and wealth management firms that reported diversity and gender pay gap data dropped from 35 to 32 in 2019. There were also allegations that some companies are transferring staff and restructuring their businesses to avoid being obliged to report. Others were completely ignoring the reporting requirement under the perception that there will be no repercussions.