The recent EBA report provides a comprehensive overview of the implementation and effectiveness of gender-neutral remuneration policies in financial institutions and investment firms. While the adoption rate is promising, significant challenges remain, especially among investment firms where almost 20% have not implemented these policies. The report highlights the necessity of addressing these gaps through robust monitoring and transparency.
Key findings
- Adoption rate: the report shows that (i) already 85.0% of institutions and only 62.6% of investment firms monitor the representation of women and (ii) already 79.9% of institutions and only 60.6% of investment firms regularly review the gender pay gap.
- Challenges: defining what qualifies as an ‘equal position’ or ‘equal career level’ has proven to be a complex task, particularly when considering multiple units or functions.
- Regulatory landscape: the report calls for continued supervision and potential legislative refinements to ensure pay equity.
Interplay with the Pay Transparency Directive
The findings of the EBA align closely with the objectives of the Pay Transparency Directive (EU) 2023/970, which seeks to foster greater transparency in remuneration. This directive mandates that companies disclose clear information regarding pay structures, enabling employees to understand and compare wages across genders.
Actionable steps for companies
- Implement clear gender-neutral policies: develop and enforce policies that promote gender-neutral remuneration.
- Enhance monitoring and disclosure: regularly track gender pay gaps and make the data publicly accessible to ensure transparency.
- Foster continuous improvement: engage in ongoing efforts to promote equality at all levels of the organization.
For a detailed exploration of the EBA's findings, access the full report here.
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