UK Financial Services Gender Pay Gap

Board-level pay, senior governance hiring trends and what current market data shows across UK financial services

The gender pay gap at board and senior governance level remains a live issue across UK financial services. While progress has been made in recent years, pay consistency and remuneration governance continue to sit under close scrutiny from regulators, boards and senior leadership teams.

Recent data shows that change is happening — but also highlights where gaps remain and why informed, market-aligned hiring decisions are increasingly important.

Gender pay gap on UK financial services boards

According to the latest Boardroom Monitor from Ernst & Young LLP, the gender pay gap on UK financial services boards narrowed from 40% in 2020 to 29% in 2024.

This reflects meaningful movement over a relatively short period. However, at 29%, the UK board-level gap remains significant and continues to attract attention in comparison with other major financial services markets.

The data also highlights variation by sector. Insurance and asset and wealth management have seen more pronounced progress, while banking continues to account for a material proportion of the overall gap. This divergence reinforces the need for sector-specific analysis rather than headline averages.

Senior governance hiring is influencing pay expectations

As more women are appointed into senior governance and board roles, salary discussions are becoming more consistent and better informed. Senior female hires are increasingly clear on market-aligned expectations, particularly where roles carry material regulatory accountability, risk ownership and oversight responsibility.

This is not limited to non-executive appointments. Across compliance, legal, financial crime and non-financial risk leadership roles, firms are seeing greater scrutiny of role scope, reporting lines and decision-making authority when remuneration is discussed.

In practice, this is leading to more structured conversations around pay alignment, particularly for roles sitting under regulatory regimes that demand demonstrable accountability and effective challenge.

Regulatory expectations and remuneration governance

Regulatory expectations continue to evolve in parallel with hiring trends. Gender pay gap reporting, remuneration governance and board accountability are established features of the UK regulatory environment and are increasingly interconnected.

For regulated firms, senior-level pay decisions must be fair, defensible and clearly aligned to role scope and accountability. Inconsistencies between responsibility, authority and remuneration can raise questions not only internally, but also in supervisory and governance contexts.

As boards strengthen governance frameworks and oversight functions, remuneration structures are being reviewed alongside succession planning, role design and leadership capability.

What hiring data shows in practice

Hiring outcomes provide an important lens on how these dynamics are playing out.

At the Danos Group, our placement data across UK senior governance roles shows a steady shift over time. Female placements increased from 30% in 2019 to 45.1% in 2025, reflecting a more balanced flow of senior governance talent entering the market.

This trend is visible across compliance, legal, financial crime and non-financial risk functions, where firms are prioritising depth of experience, regulatory credibility and operational judgement when making senior appointments.

The data points to a broadening of the senior talent pool, rather than a change in selection standards, with appointments driven by role requirements, capability and market availability.

Why market benchmarking matters in senior appointments

In this environment, informed hiring decisions matter more than ever.

When representing senior candidates, benchmarking must go beyond headline salary data. Skills, experience, regulatory exposure, sector complexity and role accountability all materially influence what a position commands in practice.

Firms that rely on outdated benchmarks or generic market assumptions risk misalignment between pay, responsibility and expectations. By contrast, organisations that ground remuneration decisions in live market data are better positioned to attract and retain senior governance talent in competitive conditions.

Looking ahead: 2026 salary guides and market insight

As hiring and remuneration dynamics continue to evolve, access to accurate, role-specific market insight remains critical.

The Danos Group will shortly be launching its 2026 Compliance and Legal Senior Salary Guides, alongside broader market updates, providing detailed benchmarking across UK financial services. These guides will offer practical insight into current pay levels, hiring trends and role expectations across senior governance functions.

For organisations reviewing headcount, succession planning or remuneration frameworks, timely and market-aligned data will be central to effective decision-making.