The report assesses diversity practices in the EU banking sector, revealing that 81.20% of institutions have adopted diversity policies, while 18.80% have not. Although female representation in leadership positions has slightly improved, salary disparities between men and women persist, with male directors earning 9.82% more than their female counterparts. Competent authorities must continue to monitor and…
This report, entitled "Report on benchmarking of diversity practices in the EU banking sector (2024 data)", was published in 2026 by the European Banking Authority (EBA). It covers diversity practices, notably gender diversity, in the governing bodies of banks and investment firms in the European Union and the European Economic Area, with data as of 31 December 2024. The scope includes diversity policies, the composition of management bodies (executive and non-executive), pay gaps between men and women, as well as other dimensions such as age, professional experience, education and geographic origin.
The report addresses the state of diversity practices in the governing bodies of European financial institutions, particularly gender representation and the pay gap between men and women. This topic is crucial as diversity fosters better decision-making, reduces groupthink risks and ensures sound governance. Key findings show progress in adopting diversity policies, with 81.20% of institutions having such a policy (84.52% for credit institutions, 66.87% for investment firms), but 18.80% still have none (p. 6, 11). Only 67.24% of institutions have quantified targets on female representation (72.59% for credit institutions, 44.17% for investment firms) (p. 6, 11). Female representation in executive roles remains low: 45.87% of institutions have no women among their executive directors, including about one third of large institutions (p. 6, 26). Women represent 12.37% of CEOs (slightly increasing) and 13.51% of non-executive chairpersons (p. 6, 21, 22). Recent recruitments show a moderate improvement in female representation but remain insufficient, especially for executive positions (26.17% women among new executive directors between 2022 and 2024) (p. 23, 24). Regarding pay gaps, men earn on average 9.82% more than women among executive directors (excluding CEOs) and 2.18% more among non-executives (p. 6, 37-39). This highlights persistent shortcomings in applying gender-neutral remuneration policies. The report concludes that despite progress, stronger efforts are needed to ensure regulatory compliance, promote balanced representation and correct pay disparities. It recommends competent authorities continue their controls and supervisory measures, notably within fitness and proper assessments and regular reviews, and institutions adopt targeted measures to improve diversity and pay equity (p. 6, 40-41).
The report is based on the requirements of Directive 2013/36/EU (CRD IV) which mandates credit institutions and investment firms to consider diversity in recruiting members of their governing bodies, notably regarding gender, age, education, professional experience and geographic origin (p. 7-8). The objective is to improve governance, avoid group behaviours and ensure sound management. Data collection on diversity policies and pay gaps is mandatory for competent authorities, who transmit this information to the EBA for analysis and benchmarking. The report aims to provide an updated overview of diversity practices in the European banking sector, identify progress and gaps, and guide supervisory authorities and financial institutions' actions. It is part of a triennial monitoring since 2015, with an extension since 2021 to analyse pay gaps between men and women in governing bodies (p. 7-9).
Adoption of diversity policies: 81.20% of institutions have a diversity policy, up from 72.95% in 2021 and 58.39% in 2018. However, 18.80% have not yet adopted one. Policies including quantified targets on female representation concern 67.24% of institutions, with significant disparities between Member States and between credit institutions (84.52%) and investment firms (66.87%) (p. 11-15).
Gender representation in governing bodies: 45.87% of institutions have no women among executive directors, even in one third of large institutions. Women represent 12.37% of CEOs and 13.51% of non-executive chairpersons. Female representation is higher in supervisory functions (32.48%) than in executive functions (21.78%). The proportion of women is higher in younger age groups, suggesting gradual improvement (p. 21-23).
Recent recruitments: between 2022 and 2024, 26.17% of vacant executive director positions were filled by women, compared to 24.27% in 2019-2021. For non-executives, the female share is 36.98% (32.30% in 2019-2021). These figures show a positive but insufficient trend to reach balance (p. 23-25).
Diversity by institution size: female representation improves with institution size. Large institutions have better female representation in executive and supervisory functions. For example, 31.71% of large institutions have female executive directors, versus over 50% of small institutions with no women (p. 26-27).
Other diversity dimensions: age diversity is generally balanced, with good representation across age groups, although non-executives are on average older than executives. Professional diversity is dominated by banking and financial institution experience, but career diversity remains limited in many institutions, notably in management roles. Educational diversity focuses mainly on economics and management, with better diversity in large institutions (p. 29-34).
Geographic origin: institutions active internationally have variable geographic diversity in their governing bodies, with better geographic coverage in small institutions than in large ones (p. 34).
Correlation between gender diversity and profitability: institutions with mixed executive management have a higher average return on equity (RoE) (12.79%) than those with single-gender management (7.36%), without implying causality (p. 35).
Pay gap between men and women: men earn on average 9.82% more (median, excluding CEOs) among executive directors and 2.18% more among non-executives (excluding chairpersons). The gap is more marked when considering the mean and including CEOs and chairpersons. These gaps persist despite the obligation of gender-neutral pay policies and require targeted corrective measures (p. 36-39).
Established facts:
- 81.20% of institutions have a diversity policy, but 18.80% still do not (p. 11).
- 45.87% of institutions have no women among executive directors (p. 26).
- Women represent 12.37% of CEOs and 13.51% of non-executive chairpersons (p. 21-22).
- The median pay gap is 9.82% to the detriment of women among executive directors excluding CEOs (p. 38).
Hypotheses and interpretations:
- Diversity fosters better governance and decision-making (p. 7).
- The correlation between gender diversity and profitability suggests a positive impact, without proof of causality (p. 35).
Uncertainties:
- Pay gaps may be influenced by unaccounted factors such as specific responsibilities or experience (p. 37).
- Data variability between Member States and institution types may limit generalisation of conclusions (p. 11, 18-21).
The report stresses that despite progress, compliance with European diversity requirements is not universal, posing regulatory and reputational risks for non-compliant institutions (p. 40). Female underrepresentation, especially in executive roles, remains a major challenge. The pay gap between men and women persists, indicating shortcomings in applying gender-neutral remuneration policies. Competent authorities must strengthen their controls, notably in fitness and proper assessments and regular reviews, to ensure institutions adopt and apply compliant diversity policies, set quantified targets and ensure pay equity (p. 40-41). Institutions must take effective measures to improve diversity in gender, age, education, experience and geographic origin, develop a diverse candidate pool and rigorously apply gender-neutral pay policies. The EBA will continue its regular monitoring and publication of benchmarking reports to support these efforts (p. 41).
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