Study Shows General Disparity Of Pay Between Women And Men; 41.6% Of Pay Gap Applied To Female Financial Advisors

Wednesday, January 30, 2013 20:17
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Study Shows General Disparity Of Pay Between Women And Men; 41.6% Of Pay Gap Applied To Female Financial Advisors

Tags: Advisor businesses | compensation | financial advisor

If you think the disparity in pay between women and men doesn’t apply to the financial industry, think again.
 
A US Census data analysis conducted last year revealed that in 2010, the pay gap between women and men was 41.6% for women classified as personal financial advisors.
 
Of those, 37.7% were classified as securities, commodities, and financial-services sales agents.

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That means for every $100,000 a man in the industry earns, a woman only earns $62,700.
 
This disparity underlies the Paycheck Fairness Act Senate Democrats are pushing for passage to help close the gender-based gap in pay.
 
The Paycheck Fairness Act would build upon the Lilly Ledbetter Fair Pay Act passed on January 29, 2009 that eliminated the 180-day statute of limitations for women to contest pay
discrimination.
 
That legislation was predicated by the Equal Pay Act of 1963. Senate Republicans last July blocked a paycheck fairness bill similar to the Paycheck Fairness Act.
 
The bill will also strengthen women’s ability to negotiate salaries and other workplace skills. It also puts the burden of proof on the employer to show that pay discrepancies are based on differences in performance.
 
The new act will prohibit employer retaliation for employee sharing of salary information. Many women are the breadwinners in their families. Over a career, the disparity in pay can cost them as much as $434,000.

Comments (3)

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Msucrevail
This is bull as a women Financial planner I have been paid equally for equal time I was available to work - I know first hand as a 30 year veteran married to a Financial Planner for 20 years!
Msucrevail , February 01, 2013
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lisagray
Great and easy comparison and I, too, was paid on the same grid as the men in my office during the first half of my career as a financial advisor.

I have to say, however, that it was much more difficult for me to get the support I needed to reach the top production levels so making President's Club was an even greater achievement.

It was clear in my office back in 1996 that my manager favored the guys. He would buddy around with them and take them out to lunch. They got an enclosed office sooner.

I was the only woman in my branch who got a closed office (as opposed to a cubicle) and also the only woman in my branch to make a production club.

1996 was 17 years ago...so the bulk of your 20 years has occurred since that time.

As well, I'm not sure of the categoric accuracy of the US Census Bureau study. Perhaps assistants and some back office roles are being included in the sales professionals category.

It does note "securities, commodities, and financial services sales agents," which, in my view, could be a pretty broad brush.
lisagray , February 01, 2013
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echeyne
Where there considerations of time in grade for this study? My male boss with many more years in business make several times what I do. I am also male. Unfair? Harldy!
echeyne , February 01, 2013

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