EBA Report: Benchmarking Diversity Practices and Gender Pay Gap

In March 2023, the European Banking Authority (EBA) published a "Report on the benchmarking of diversity practices and the gender pay gap". The report shows that:

• only 18% of management positions in the banks surveyed are held by women;
• the obligatory diversity policy does not yet exist in 27% of institutions; and
• and the gender pay gap at board level is around 9.5%.

The EBA launched a consultation on "Guidelines on the benchmarking of diversity practices including diversity policies and the gender pay gap" in April this year. This is to ensure that the benchmarking reports are based on a representative sample. The aim is to achieve even greater transparency on the path to gender equality and equal pay.

In June 2023, the Pay Transparency Directive came into force, imposing new requirements on all EU Member States and all sectors. Employees can now demand information about the criteria used to determine pay and career development. Questions about previous pay will be prohibited, as will confidentiality clauses in employment contracts designed to prevent pay transparency. The transposition into national law has to take place by June 2026.