European board pay narrows gap with North America amid talent competition

European financial institutions have significantly narrowed the pay gap with North American boards, with remuneration rising 10% in 2025, outpacing global wage inflation. This increase has narrowed the transatlantic pay gap by 27%, though a significant differential remains.

According to the EY Global Financial Services Boardroom Monitor, European board remuneration rose 10% in 2025, compared to 4.5% in North America and 4.7% in Asia-Pacific. Average remuneration across European financial services boards reached $314,148 in 2025, up from $285,487 in 2024. In North America, pay rose to $350,847 from $335,821.

The gap between European and North American boards narrowed to 10.5% in 2025, a decrease from 15% in 2024, representing an absolute pay differential of $36,699 compared to $50,334.

Despite these overall gains, a persistent gender pay gap exists, particularly in Europe. Female non-executive directors in Europe earned 38.9% less than their male counterparts in 2025, compared to 30.2% in Asia-Pacific and 7.1% in North America. Male non-executive directors in Europe were paid an average of $381,894, surpassing the North American average of $360,770, while European female directors received an average of $233,365, significantly less than their North American peers at $335,073.

The premium for board chair roles also increased globally, with remuneration rising 13.7% to $755,136 in 2025, 2.5 times the compensation of other directors. Europe saw the largest increase in chair remuneration, up 19.7% to $846,408.