Blackstone Group LP reported an average gender pay gap of 30 percent at its UK business, offering a rare glimpse into the private equity industry’s wage disparities.
The disclosure was made to comply with a UK government directive for employers with more 250 staff to report their pay gap by April 4.
Disparity at Blackstone
Women earn 65 pence for every 1 pound paid to men on a median hourly basis, the New York-based firm said in a statement.
The New York-based private equity industry said that the gap chiefly comes from men occupying the bulk of high-paying investment jobs at the firm.
"As these roles typically attract higher rewards than non-investment roles, this increases the average pay for male employees," New York-based Blackstone said.
"In contrast, less than a fifth of our female employees are investment professionals and nearly three quarters are in support and administrative roles."
The disparity at Blackstone was far greater in bonuses, which often go to more senior employees, with a mean gap of 75 percent.
The company said it was confident women and men were paid equally for equivalent jobs across its business. However, the numbers underscore how private equity remains a male-dominated industry.
Blackstone’s pay gap represents broader trends in the industry: women make up 9.4 percent of senior positions in private equity, and only about 18 percent of the industry’s workforce, according to an October report.
Companies’ disclosures in the U.K. offer a view across the whole workforce rather than employee-to-employee comparisons, and in many cases, the pay differences reflect a lack of women in more senior -- and thus better paid -- roles.
While the salary data shows some large gaps, bonuses paint the worse picture at most financial firms. At Blackstone, the average incentive compensation for women is 75.4 percent lower than men’s, with the median pay gap stands at 84.9 percent.
The reported figures don’t provide a like-for-like comparison, and men and women are paid the same in similar roles at Blackstone, the firm said.
Gender diversity has improved since private equity rose to prominence on Wall Street in the 1980s and Blackstone now staffs around 40 percent of its incoming analyst class with women, a source familiar with the matter said. Analyst classes can filter up into more senior positions.
Nevertheless, top management at the largest firms, which include Blackstone, Apollo Global Management LLC, KKR & Co LP and Bain Capital LLC,
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