US-based investment firm Goldman Sachs has reported a gender pay gap of nearly 51% as part of new legislation that forces all businesses to disclose their gender pay statistics.
The bank paid women 50.8% less than men for each hour they worked at the business in 2018 worldwide, which is around 5% lower than its reported gap in 2017. however, the UK branch of the Investment bank reported a gender pay gap of only 17.9%.
The report also highlighted an average financial bonus pay gap of 66.7% for Goldman Sachs International, with an average financial bonus gap of 40.7% for Goldman Sachs UK branch.
However, it was also found that both Goldman Sachs International and the UK branch of the firm give bonuses to a higher proportion of women at the firm than men, and at the lowest salary groupings, women earned on average more than their male co-worker counterparts.
The report was calculated on statistics based on the average salaries of men and women paid at the firm in the UK, irrespective of role, seniority or performance.
The bank has stated that this doesn’t reflect a lack of commitment to the Equal Pay Act, but is instead indicative of a longstanding issue within Investment banking, that men are more likely than women to gain senior roles and work bonuses.
The highest salary grouping for the firm, which commonly constituted the most senior levels of management, found a pay gap of over 63.8% for the International group, and 55.2% for the UK branch.
Similar reports have been found in other banks, such as the Bank of England, which reported an average pay-gap of 21% and reported that their highest paid employees were 70% male, compared to the lowest paid who were 57% female.
Goldman Sachs have also released an outline for how the investment firm plan to deal with the pay gap and the issue of diversity within the business.
The firm has committed to expanding the diversity in the upper management of the bank, including new policies for childcare and eldercare, as well as new healthcare plans for fertility and gender dysphoria.
The firm also aims to gain a 50% female-male quota when hiring analysts from University and from other companies, along with proportional hiring quotas for ethnicity.