Women's Day: Even seniors in the economy earn less than men
A study conducted by BDO examined the highest pay gaps among 430 public companies and found gender pay gaps between men and women in the same positions.
In other words: the gender expression of the wage gap does not miss even the most senior
Walla!
Of money
08/03/2022
Tuesday, 08 March 2022, 09:37 Updated: 09:57
Share on Facebook
Share on WhatsApp
Share on Twitter
Share on Email
Share on general
Comments
Comments
In the first two deciles of the table of wage peaks in public companies for 2020 there is no woman.
Where is the "Israeli Champion" ranked?
Well: a woman signed the third decile - in 30th place.
This position is occupied by the CFO of the technology industry, who is not a resident of Israel - according to a study
conducted by Adv. Adva Belmes, partner and director of senior remuneration, BDO Consulting with CPA Yigal Toledano, partner, director of BDO Consulting.
430 public companies in Israel, and examined the five highest wage earners in each
company.In 2020, the average compensation package for male officers was NIS 1,795 thousand (NIS 1.795 billion), of which 45% for a fixed component, and the rest for incentives and capital grants and others.
The total remuneration package for women in 2020 was about 36% lower than that of their male counterparts (about NIS 1,154,000).
The division between the fixed and variable component in women was reversed.
This figure may be due to the fact that women are characterized as more “risk averse” than men, and therefore preferred a higher fixed component rate, even if it came at the expense of a variable reward (incentive and capital).
The fixed component of women's wages in 2020 was about 54% of their wages.
More on Walla!
Including national competition: 8200 for the education system
To the full article
The figure that will cloud the smile: The three men around the executive table, earn more than the three women in the same position (illustration) (Photo: ShutterStock)
Salary to banks, Salary to insurance companies
The industry in which women's wages experienced a renaissance and benefited from the most significant positive return was the investment and holdings industry, where their remuneration package increased by 20% from 2019 - but is still about 60% lower than the men holding the same jobs.
Most of the gaps are due to the varying components of the compensation package (incentive and capital grants).
In addition, we also examined the salary gaps in managerial exchanges in the same companies and in the same positions.
In most cases, when a man replaced a woman in the same position and in the same company, his salary was significantly higher than a man who replaced a man under the same conditions - in these cases there was no significant salary change, if any.
The representation of women in senior positions in Tel Aviv 125 (about 20%) is higher than the rate of their representation in the stock exchange, lower than their rate in the Knesset (about 32.5%) and higher than their rate as public representatives in local authorities (17.5%)
. The lowest seniority is the insurance industry - only 6% of the industry's officers.
The industry in which female representation in management positions is highest is banking, with 32% holding office.
It has a second financial services industry, with 17% office holders.
Women and men, wage gaps by industry (2020) (Photo: BDO Israel)
Legal Advisers: More women earning much less compared to men
The largest salary gaps between men and women in senior positions are particularly prominent in the holding and investment industry, where the average annual salary cost for industry executives is NIS 2.477 million per year, compared with NIS 979,000 for senior women in the industry - a gap of 60.5%.
Only 5% of public companies in Israel serve as chair of the board, and they earn 37% less than their male counterparts - an average annual salary cost of NIS 1.305 million per chair of the board, compared to NIS 2.065 million for men in the same position.
Only 5% of public companies in Israel have CEOs, and they earn 33% less than CEOs.
The only area where there are more women in senior positions is legal consulting, where 76% of jobs in public companies are staffed by women, but it is amazing to find that they earn 44% less than their male counterparts who serve in the same position.
In most industries there does not appear to be a change in the promotion and recruitment of women to senior positions, and their low rate remains similar in most industries.
The industries in which there has been an increase in the proportion of women in office in recent years are financial services and banking, but even here there is a lack of representation of women.
The authors of the report, Adva Belmes and Vigal Toledano, partners and managers at BDO Israel (Photo: BDO Israel)
A combination of regulation and education
According to Adv. Adva Belmes, partner and director of senior compensation at BDO: "The gaps between men and women in senior positions in the Israeli economy are still deep.
Both are the gaps in the relative proportion of women holding senior positions, and in the significant pay gaps between them and their male counterparts, across industries.
However, buds of hope can be seen in the integration of women into positions and industries that were previously less staffed by them.
The desired change will come to my taste from a combination of education, regulation, progress and transparency of information regarding gender equality.
There is no sin from the sunlight - transparency will raise awareness of the issue of gender gaps, and will allow women to stand on their own, and demand the same pay as their counterparts, with similar skills and experience.
"The new work model that gained momentum in 2021 is the remote work model using advanced technological tools, will allow women to exhaust their abilities and skills, while the desired balance between home and work, and removing the geographical barrier. There is still a way ahead "Transparency and the new labor market that is emerging against our interests will lead to full gender equality, already in the coming years."
According to CPA Yigal Toledano, Partner and Managing Director, BDO Consulting for many years, BDO's consulting firm conducts gender comparative wage surveys on the occasion of International Women's Day, and unfortunately despite the expectation, there were no significant changes in the representation of women in senior positions in the Israeli economy. Wages for their male counterparts.The key to reducing inequality lies in women's recognition of their true value and contribution to the organization on the one hand, as well as in creating a proactive infrastructure in the organizations themselves, on the other.
When women come to a discussion about wages, it is recommended that they conduct a preliminary survey in databases or through consultants who will provide reliable information about the compensation packages that their male counterparts receive - and will demand them.
"A discussion based on a comparative survey and data will by definition lead to more balanced results. At the same time, companies must produce a numerical balance, even if in the early stages by exogenous means, for example minimum mandatory standards for female staffing that will reduce the gap." "To increase the number of seniors, such as technological infrastructure that will allow flexibility to combine home and work, create transparency regarding the proportion of women and men employed in parallel positions in the various departments, etc.
We hope that in a decade gender discourse will be a thing of the past.
Photo credit and chart: BDO Israel
Of money
Tags
inequality
wage
Gender
women
Managers in the economy
International Women's Day
