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European Board Pay Surges, Narrowing Gap with North America

European financial institutions saw non-executive director pay increase by 10% in 2025, more than double the rise in North America, according to an EY analysis. This growth has reduced the transatlantic pay gap by 27%.

  • European non-executive remuneration in financial services surged 10% in 2025.
  • The transatlantic pay gap for financial sector directors narrowed by 27% in 2025.
  • Female non-executive directors in Europe earned 38.9% less than male counterparts in 2025.

European financial institutions have significantly closed the boardroom pay gap with North America, driven by efforts to attract top talent. An EY analysis of over 2,000 financial sector directors revealed that European non-executive remuneration rose by 10% in 2025, which was more than double the increase seen in North America.

This accelerated growth resulted in a 27% narrowing of the transatlantic pay gap. In 2025, the average remuneration for Europe's financial services boards reached $314,148 (£233,061), up from $285,487 in 2024. Despite North America still leading in overall remuneration, the gap reduced, with European boardrooms now paying 10.5% less on average than their North American peers, compared to 15% less the previous year.

The wealth and asset management sector experienced the largest increase in average non-executive board remuneration, rising by over 11% to $368,680. Board chair remuneration also increased more than twice as fast as other directors, reflecting the role's increasing complexity.

Despite an improving gender split in boardrooms, a pay gap persists across regions. In Europe, female non-executive directors earned 38.9% less than their male counterparts in 2025. In the UK, new data from Fox & Partners indicated that female board directors at FTSE 100 companies still earn £795,000 less annually than their male counterparts, with average pay for women at £476,000 compared to £1.27m for men.

Why this matters: The narrowing pay gap reflects a competitive environment for attracting skilled professionals to European financial boards, while persistent gender pay disparities highlight ongoing challenges in achieving equality.

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