Introduction

Over the past decade, conversations about gender equality in the workplace have become more than just talking points. They’ve become action items for companies, regulators, and professionals alike. One issue that continues to dominate these discussions is the gender pay gap. And while progress has been made in many sectors, financial services, including the Exchange-Traded Funds (ETF) industry, still have work to do.

For ETF professionals working in Europe, the gender pay gap isn’t just a theoretical concern or a box to tick for compliance. It affects career growth, salary negotiations, hiring and retention strategies, and even the reputation of your company. Whether you’re leading a team, navigating your own career, or building out HR policy, understanding the gender pay gap is crucial to long-term success in this space.

What Exactly Is the Gender Pay Gap?

The gender pay gap refers to the average difference in pay between men and women across an entire workforce. It’s important to note that it doesn’t necessarily reflect unequal pay for the same job, which is illegal in most places. Instead, it highlights systemic issues, such as the underrepresentation of women in high-paying roles, unequal access to promotions, and occupational segregation, where women are more likely to be in lower-paid positions.

According to the latest Eurostat data from 2023, the unadjusted gender pay gap in the European Union sits at 12%, meaning that women earn, on average, €88 for every €100 earned by men. In financial services, where salaries can vary widely and bonuses are common, the gap is often even larger. The reasons are complex, but they often come down to a combination of historical inequalities, lack of transparency, and the slower pace of change at senior levels.

🔴 In this year’s 2025 Global ETF Salary Survey, women in ETFs earned 20% less than men on average—a worsening trend from 18% last year.

This widening gap suggests that ETF firms still face significant challenges in creating equitable pay structures, especially as the industry grows and evolves across Europe.

Why ETF Professionals Should Take Notice

If you’re in the ETF space as a portfolio manager, analyst, marketer, or executive, you might be wondering how this issue affects you personally. The short answer: in more ways than you think.
Here’s why the gender pay gap should be on your radar.

1. It Influences Career Trajectories

Understanding the pay gap can help you assess whether you’re being compensated fairly and whether your organization is creating a level playing field. If you’re consistently seeing men in leadership while equally qualified women remain in mid-level roles, that’s a red flag. It may shape how you plan your next move.

2. It Impacts Salary Negotiations

Data is power. If you know what others in your role are earning, you can negotiate from a position of strength. Unfortunately, many women are paid less simply because they accept initial offers that are lower than those made to their male counterparts. Having access to compensation benchmarks and industry surveys can help close that knowledge gap.

3. It Reflects Company Culture

Organizations that are serious about closing the gender pay gap usually demonstrate that commitment in other areas too, such as offering mentorship programs, flexible work options, and inclusive leadership training. These are all signs of a workplace where people of all backgrounds can thrive.

4. It Affects Employer Branding

From a hiring perspective, companies that ignore pay equity risk falling behind. Talented professionals increasingly want to work for firms that take diversity, equity, and inclusion seriously. If your firm isn’t paying attention, it could struggle to attract and retain the best talent.

Legal Obligations: What You Need to Know About Reporting Rules

If you’re in HR, compliance, or a leadership role, staying ahead of gender pay reporting requirements is not just smart. It’s essential.

The EU Pay Transparency Directive (2023)

In a significant step forward, the European Union adopted the Pay Transparency Directive in 2023. It’s expected to take effect in most member states by 2026, and it places new obligations on employers, especially larger ones.

Key components include:

• Annual reporting for companies with 100 or more employees on their gender pay gap.
• Disclosure of pay levels and progression criteria to employees and applicants.
• The right to pay transparency, meaning workers can request information on pay averages for similar roles broken down by gender.
• Mandatory pay assessments if the gap exceeds 5% and cannot be justified with objective, gender-neutral factors.

This legislation is part of a broader EU effort to bring gender equality to the forefront of employment policy. It’s a game-changer for financial services firms.

What About the UK?

Although the UK is no longer part of the EU, it has had its own mandatory gender pay gap reporting rules in place since 2017. Companies with 250 or more employees must publish detailed information each year, including:

• The mean and median gender pay gaps.
• Gender differences in bonus pay.
• The proportion of men and women in each pay quartile.

These reports must be made public and submitted to a government website. For UK-based ETF firms with European operations, both UK and EU regulations may apply.

What ETF Employers Should Be Doing Now

Whether you’re running a boutique ETF issuer or part of a global asset management firm, waiting until 2026 to think about compliance is risky. Here’s what proactive firms are doing today:

• Conducting internal pay audits to identify unexplained gaps
• Creating transparent compensation bands, so employees know what to expect and why.
• Updating job descriptions and promotion criteria to remove gendered language or bias.
• Providing training for hiring managers on equitable pay and promotion practices.
• Partnering with groups like Women in ETFs to promote leadership and mentorship opportunities for women in the industry.

These aren’t just “nice to have” initiatives. They’re essential for building a sustainable, future-focused workforce.

A Note for Individual Professionals

If you’re navigating your own career in the ETF industry, here are a few practical things you can do:

• Benchmark your compensation using reliable, role-specific data. Don’t rely on guesswork.
• Ask questions during interviews or performance reviews. What are the company’s policies on pay equity? Are salaries transparent?
• Seek out mentorship and sponsorship. Connecting with experienced professionals, especially women in leadership roles, can open doors and build confidence.
• Don’t be afraid to advocate for yourself, your team, or broader changes within your firm. Sometimes it only takes one voice to start a bigger conversation.

Final Thoughts

The gender pay gap is more than a statistic. It’s a reflection of how companies value fairness, growth, and accountability. In the ETF industry, where competition for talent is fierce and regulation is tightening, addressing pay equity isn’t just the right thing to do. It’s a strategic imperative.

Professionals who understand how the gap affects their careers can make smarter, more informed choices. Employers who lead on this issue can enhance their brand, retain their talent, and stay ahead of evolving compliance demands.

At the end of the day, closing the gender pay gap helps everyone. It creates more equitable workplaces, stronger companies, and a healthier financial industry for the future.