Senior executives in the boardrooms of European financial services companies are edging closer to parity with their North American counterparts new data has revealed.

Research by EY found remuneration across European financial services boardrooms rose 10% in 2025, more than double the increase in North America (4.5%) and Asia-Pacific (4.7%), and significantly above global wage inflation (3.5%). However, the gender pay gap remains stark.

The latest EY Global Financial Services Boardroom Monitor revealed average remuneration across Europe’s financial services boards reached $314,148 in 2025, up from $285,487 in 2024. Over the same period, average financial services boardroom pay in North America rose 4.5% to $350,847, from $335,821, while in Asia-Pacific (APAC) remuneration rose 4.7% to $273,006 up from $260,648 in the previous year.

The “transatlantic pay gap” between European and North American boards narrowed in 2025, with European boardrooms now paying 10.5% less on average than their North American peers, compared with 15% less in 2024. In absolute terms, the gap fell 27% year on year to pay differential of $36,699 in 2025, compared with $50,334 in 2024.

Notable differences in gender pay, however, underpin the headline averages. Despite rising boardroom remuneration, Europe continues to have the largest gender pay gap across all three regions. In 2025, female non-executive (non-exec) directors in Europe earned 38.9% less than their male counterparts, compared with 30.2% in APAC and 7.1% in North America – this is despite female pay rising 13% in 2025 while male pay rose 9.2%.

In 2025, male non-exec directors on European financial services boards were paid $381,894 on average, rising above the North American average of $360,770 for male non exec directors. By comparison, female non-exec directors in Europe received an average of $233,365, relative to female peers in North America, who were paid an average of $335,073.

Omar Ali CBE, EY global financial services Leader, said: “In a 12-month period, Europe’s financial services firms have invested in board talent in a major way, responding to cross-border competition for skills and experience. But headline averages conceal a significant pay disparity, with female non-executive directors in Europe continuing to earn substantially less than their male peers. 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.”

Remuneration for board chairs rose more than twice as fast as other directors

EY explained the complexity of the role, macro challenges and time requirements contributed to the premium attached to the board chair role increasing in 2025. Average global board chair remuneration rose 13.7% to $755,136, compared to a 5.8% rise for other board non-exec directors, whose average remuneration reached $296,706. Board chairs now receive 2.5 times the average remuneration of other non-exec directors, compared with twice as much in 2021.

Europe recorded the largest increase in board chair remuneration, up 19.7% to $846,408 in 2025. Chair remuneration rose 6.5% in APAC and 5.9% in North America. The increase for other board directors was lower in all three regions, at 9.1% in Europe, 4.8% in North America and 2.0% in APAC.

Ali added: “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.

“While the demand placed on board chairs will only rise amid greater regulatory scrutiny, technological change, macroeconomic and geopolitical uncertainty, firms must be mindful of building a strong and diverse group of directors – with the collective skills, decision-making responsibilities and resilience to support an ever-growing list of priorities.”

The EY Boardroom Monitor found a notable difference in the gender pay gap of younger non-executive directors relative to older peers.

Among directors under the age of 50 across the global population, average remuneration is broadly equal between women and men. Female directors in this cohort received approximately $236,000 on average in 2025, compared with approximately $232,000 for male directors. Women make up just over half of the under-50 cohort.

From age 50 onwards, significant gender pay gaps – up to 24%  –  emerge across the older age groups.

Women accounted for 41.1% of the director population across global financial services in 2025, up from 35.9% in 2021. Over the same period, however, the global gender remuneration gap increased from 17.1% to 22.4%.

Ali concluded: “The profile of the youngest directors is an important marker of the ways in which the sector’s boardrooms are evolving. While women are in the majority among the under-50 cohort – where average remuneration between men and women is broadly level – this group still constitutes a small proportion of the overall board population.

“The much larger remuneration gaps among older directors evidences the entrenched pay dynamics that have played out historically. As boards plan for succession, representation and fair remuneration need to be considered alongside the experience and skills firms require from their directors.”