On 7 March 2023, the European Banking Authority (EBA) published a report on the benchmarking of diversity practices and the gender pay gap.
Under Article 91(11) of Directive 2013/36/EU, the EBA and Member State competent authorities (NCAs) are required to benchmark diversity practices in institutions’ management bodies. The EBA and the NCAs are also mandated to collect information on the gender pay gap of members of the management body under Article 75(1) of Directive 2013/36/EU and 34(1) of Directive (EU) 2019/2034.
The figures in this report are based on a representative sample of 662 credit institutions and 129 investment firms selected by NCAs and those competent authorities in Lichtenstein and Iceland, on the basis of common criteria set out by the EBA.
The report highlights the following:
- 27.75% of non-executive directorships are held by women.
- Only 18.05% of executive directors are female.
- Gender balance in northern and eastern Europe is generally better than in other parts of the EU.
- 27.05% of institutions still lack the mandatory diversity policy.
- A clear positive correlation between gender balance and return on equity exists.
- Women earn on average 9.48% less than male executive directors and 5.90% less than male non-executive directors.
The data presented in this report makes clear that further improvements of gender balance and, more generally, of diversity at institutions’ management bodies are needed.
Henceforth, further work by institutions is needed to overcome the identified shortcomings. All institutions must adopt a diversity policy and many need to improve the gender diversity of their boards in the short to medium term, including through the setting of appropriate gender balance targets.
The EBA will continue to monitor diversity in management bodies and issue periodical benchmark studies on diversity and on the gender pay gap at the level of the management body.