Law firms struggle to close gender pay gap
A trio of Magic Circle law firms see increase in gap since mandatory gender pay reporting was introduced | Research reveals firms achieving success in narrowing gaps.
Law firms report particularly large gender pay gaps, according to a new study that has revealed that nearly 80% of UK employers have a salary discrepancy that favours men in 2022-2023.
The research, published by the Financial Times, shows that the difference between men’s and women’s median hourly salary in 2022-2023 stood at slightly over 12%, compared to 11.9% six years ago.
While providing equal pay for men and women operating in the same role has been a legal requirement since the Equal Pay Act was unveiled in 1970, mandatory gender pay reporting was only introduced in 2017.
Five law firms featured in the study, including Allen & Overy (A&O), Slaughter & May, Linklaters, Clifford Chance and Freshfields Bruckhaus Deringer.
A&O’s pay gap was reported as 29.5%, increasing from 27.4% in 2017.
Meanwhile, Slaughter and May’s pay gender gap stood at 41.7%, up from 38.5% six years ago, while Linklaters reported its gap as 39.2%, up marginally from 0.1% within the same time frame.
Only two of the law firms included in the study reported a decline.
Clifford Chance saw its firm’s gender pay gap contract from 37.2% in 2017, to 31.8% in 2022.
Elsewhere, Freshfields reported a 0% difference between men and women’s median hourly pay in its 2022 report, which has decreased by more than 13% in 2017.
Commenting on the findings, Claire Wells, London managing partner of Freshfields, said: “We continue to focus on driving measurable change and ensure transparency as part of our diversity and inclusion commitments.
“I’m particularly pleased that we are including pay gap figures on socio-economic backgrounds this year, which is a key priority for the firm in our global strategy.
“Our UK colleagues have shown great engagement, and we have worked in partnership with clients and the broader community on multiple efforts, which we believe will help us eliminate pay gaps over the longer term.
