Europe’s boardroom pay gap with North America narrows amid battle for expertise
European financial institutions have aggressively closed the transatlantic pay gap at board level, driven by efforts to attract top-tier and specialist talent as boards face into a growing range of complex challenges.
An EY analysis of more than 2,000 financial sector directors shows European non-executive remuneration surged 10 per cent in 2025, more than double the increase in North America.
This accelerated growth has narrowed the transatlantic pay gap by 27 per cent, as many European directors now out-earn their peers across the Pond.
The data showed that the average remuneration across Europe’s financial services boards reached $314,148 (£233,061) in 2025, up from $285,487 in 2024. Over the same period, the EY report notes that average financial services boardroom pay in North America rose 4.5 per cent to $350,847, from $335,821, while in Asia-Pacific (APAC) remuneration rose 4.7 per cent to $273,006, up from $260,648 the previous year.
Although North America still leads on remuneration, the gap over 2025 boards narrowed in Europe, as boardrooms now pay 10.5 per cent less on average than their North American peers, compared with 15 per cent less the previous year.
The wealth and asset management sector recorded the strongest increase in average non-exec board remuneration, rising by over 11 per cent to $368,680, compared with increases of over 6 per cent in the insurance sector to $326,317 and over 4 per cent in banking to $319,801.
Board chair remuneration rose more than twice as fast as other directors because of the role’s complexity and the increasingly challenging environment facing company leadership.
Omar Ali, EY global financial services leader, said, “The rising gap between remuneration for chairs and other directors, particularly in Europe, suggests firms are placing a larger financial premium on the personal accountability that comes with the most senior governing role.”
More women executives but pay disparity persists
Despite an improving boardroom gender split, a pay gap persists across regions, most prominently in Europe, where women earn far less than male peers.
The data showed that female non-executive directors in Europe earned 38.9 per cent less than their male counterparts, compared with 30.2 per cent in APAC and 7.1 per cent in North America.
“As boards plan succession, including for committee chairs, and consider the mix of experience they will need in the coming years, the drivers of gender pay inequity, particularly in Europe and Asia, warrant closer attention to ensure that structural imbalances are proactively addressed, not reinforced,” Ali added.
In the UK, new data from Fox & Partners showed that although the pay gap on FTSE 100 boards continues to narrow, female board directors still earn a hefty £795,000 a year less than their male counterparts.
In 2026, 51 women held executive director positions at FTSE 100 companies, up from 43 in 2024. However, the average pay of female board directors at these companies was £476,000, significantly lower than the £1.27m male directors bring home.
Catriona Watt, partner at Fox & Partners said: “The UK’s biggest companies have a responsibility to set a precedent in achieving better pay equality, however at the board level that equality is still a way off. However, appointing more females to executive roles is a crucial step.”