Report shows decline in number of top female earners in British finance since pandemic

Women make up a smaller proportion of top earners in British financial and professional services than before the Covid-19 pandemic, according to research from the London School of Economics and Political Science (LSE). The study revealed that women accounted for 19.4% of the top 1% of earners in the sector between the first quarter of 2020 and the second quarter of 2023, a decrease from 19.7% in the three years leading up to the pandemic.

Grace Lordan, an associate professor at the LSE, highlighted that the lack of progression of women to the most senior roles in financial and professional services is a significant factor contributing to the gender pay gap. She emphasized the need for a greater focus on diversity in the workplace, stating that “For progress to be made, there needs to be a bigger shift towards recognizing that diversity is good for business.”

The research also revealed that some of Britain’s top financial firms pay women 28.8% less on average than their male counterparts. However, there was a positive trend in the representation of women in the top 10% of earners, with women making up 28.3% of this group between the first quarter of 2020 and the second quarter of 2023, a 2.5% increase from the previous three-year period.

The findings underscore the ongoing challenges faced by women in advancing to senior positions in the financial and professional services sectors and the importance of addressing gender disparities in pay and representation.