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Wealth managers’ gender pay gaps exposed

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3 minute read

Several finance firms reported pay gaps far exceeding the national average.

On Tuesday, it was revealed that financial and insurance services were among the worst gender pay gap offenders, with data from the Workplace Gender Equality Agency (WGEA) pointing to a gap of 26.1 per cent in the sector compared to the national average of 19 per cent - based on an employee's total remuneration including base salary, superannuation, overtime, and bonuses.

The data was compiled based on a survey of some 5,000 businesses with 100 or more employees, which was the result of amendments to the Workplace Gender Equality Act 2012 passed by Parliament in March 2023.

Namely, Australian workplaces with 100 or more employees are now mandated, for the first time, to disclose both the base salary and total remuneration median gender pay gap to WGEA.

While WGEA’s data revealed that every industry had a median gender pay gap in favour of men, some firms performed better than others.

Among the wealth managers with the worst gender pay gap were Morgan Stanley with a total gap of 48.2 per cent, followed by Platinum with 40 per cent, and Betashares with 37.4 per cent.

InvestorDaily has aggregated the data reported by WGEA, showcasing the performance metrics of the largest asset managers, banks, and wealth management firms below.

Company

Base salary %

Total pay %

% of women

Morgan Stanley

25.1

48.2

42

Platinum

41.9

40

40

Betashares

29.7

37.4

34

Count

33.9

34.3

65

Pinnacle Investment

39.7

34.2

34

Magellan

31.2

32.9

51

Fiducian

31.2

31.6

48

Charter Hall

31.4

31.3

55

CBA

29.8

29.9

56

Westpac

27.0

28.5

54

Perpetual

27.6

27.4

51

State Street

19.2

25.6

47

HSBC

22

25.2

52

First Sentier

20.9

23.8

45

ANZ

22.7

23.1

51

Macquarie

22.4

22.1

47

Morningstar

18

20.8

34

BlackRock Investment Management

19.4

20.7

39

Centuria Capital

20.5

20.4

40

Suncorp

20.5

20.1

61

AMP

17.8

19.9

53

JP Morgan

14.1

18.9

40

NAB

16.4

18.8

50

Insignia

18.3

18.7

49

Iress

14.4

16.6

38

HUB24

13.7

16.1

41

Mercer

16.5

15.2

59

ASX

9.6

10.8

42

Challenger

6.3

9.3

44

Premium

5.5

9.2

39

Netwealth

9.3

7.7

42

Vanguard

5.4

6.3

42

WGEA’s analysis further revealed that out of the 62 firms operating in the finance sector alone, the upper pay quartile is predominantly composed of men, accounting for 66 per cent, whereas the lower quartile is predominantly occupied by women, constituting 62 per cent.

Furthermore, the analysis revealed that within the sector, a mere 13 per cent of CEOs and 23 per cent of heads of businesses are women.

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.