Anger as leading FTSE 100 firms have gender pay gap twice UK average

The gender pay gap at FTSE 100 companies is nearly double the national average, it emerged on Friday.

Firms that employ at least 250 people are required to publish pay gap statistics as part of new legislation introduced by the government last year.

The deadline for 2018-19 to file ended at midnight and showed that the average median hourly pay gap at FTSE 100 constituents with more than 250 UK employees was 18.2%. Nationally, the median pay gap in favour of men was 9.6% this year.

Including companies not listed on the stock market, fewer than half of Britain’s largest employers narrowed their gender pay gap.

Just 14% of companies pay women more than men, with 78% in favour of men and the remainder showing no difference.

A look at the blue-chip index shows that of the firms that have published, just three companies, consumer goods giant Unilever, telecoms giant BT and online retailer Ocado, had a median hourly wage pay gap in favour of females.

In the FTSE 100, banking, property and technology industries were among those registering the largest gender median hourly pay gaps. Among the banking groups, HSBC had a pay gap of 39.8%, RBS 36.8%, Lloyds 31.5% and Barclays had 27.6%.

Housebuilder Berkeley saw its median pay gap rise from 37.9% in 2017 to 38.9% in 2018 while developer British Land’s was 40.6%, LandSecs’ 37.9%, Barratt’s 30.7% and Taylor Wimpey reported no gap at all.

Zero margins are technically possible but difficult to achieve because it requires employing an identical number of men and women on the same salary across pay grades.

Warehousing firm Segro appeared to have the largest pay gap of companies to have reported by midnight, with men paid 49.5% more than women.

Mandy St John Davey of Women in Property said: “This industry is one of the worst for gender imbalance, particularly at a senior level and unfortunately we continue to be underwhelmed.”

Melanie Leech, chief executive of the British Property Federation said: "The property sector is committed to fostering a culture of equality, and effecting positive change will take time. What’s crucial is that firms take concrete action and demonstrate their commitment. This is not only the right thing to do, but it is business critical."

FTSE 100 technology firm Newbury-based Micro Focus registered a 33.2% pay gap, though software specialist Sage’s was 7.3%.

Shainaz Firfiray, associate professor of human resource management at Warwick Business School, said: “While we have made great strides in the number of women in the workforce and top leadership positions, this has not led to better pay for many women.”