Gender Pay Gap in Finance: Why It Persists and How to Close It

The finance gender pay gap is narrowing, but it remains deeply structural. In CFO Connect’s latest panel discussion, senior finance leaders Pauline Babel, Chief Financial Officer at Spendesk, Alyona Mysko, Founder and CEO of Fuelfinance, and Vulnavia Kombora, VP Finance at desertcart, unpacked what the data says, why the gap persists at more senior levels, and what finance leaders can do to make pay progression fairer in practice.

Drawing on CFO Connect salary survey data and real-world leadership experience across Europe, Africa, the UAE, and startup environments, the conversation moved beyond headline statistics into the practical realities behind compensation, promotion, maternity, sponsorship, and self-advocacy in finance careers.

What is the finance gender pay gap?

The finance gender pay gap is the difference in average pay between men and women working in finance roles, often driven not only by direct pay inequality but also by differences in promotion rates, bonus allocation, senior representation, and career progression over time.

Watch the full discussion here:

Key Takeaways

• The finance gender pay gap may be improving, but progress is still too slow without intentional intervention

• The biggest issue is not only unequal pay for the same role, but unequal progression into higher-paying roles

• The 40 to 49 age bracket remains one of the most difficult periods for women in finance careers

• Maternity and parental leave are only part of the story; sponsorship, bias, and visibility matter earlier and often more

• Structured promotion systems, salary grids, and compensation transparency can help reduce subjectivity

• Women often receive lots of advice, but not enough sponsorship from leaders willing to advocate for them

• AI may become a practical lever for increasing output visibility and reducing subjective performance assessment

• CFOs have a direct role to play by auditing compensation and promotion data before regulation forces the issue

The gap that started way before, we never got to those places because of some kind of bias. Vulnavia Kombora

Why does the gender pay gap still exist in finance?

The finance gender pay gap persists because compensation is shaped by more than salary bands, it is shaped by who gets promoted, who gets sponsored, who stays visible, and who remains in the pipeline long enough to reach senior roles.

One of the strongest themes in the discussion was that finance teams often look at pay equity too narrowly. It is not only about whether two people in the same role are paid equally. It is also about whether women are reaching the higher-paying roles at the same rate as men in the first place.

According to the CFO Connect survey findings discussed during the session, the pay gap has narrowed from 17% to 13%, which is encouraging. But a 13% gap is still substantial, especially when paired with lower bonus payouts and lower female representation at more senior levels.

The panel’s point was clear: if the funnel into leadership is biased, then even fair pay at a given level will not solve the wider problem.

What to do this quarter

Review not just pay by role, but also promotion velocity, bonus allocation, and representation at each management level. The gender pay gap is often a progression gap before it becomes a compensation gap.

👉 Watch the full discussion here

Why does the gap widen at senior levels in finance?

The gap widens at senior levels because women are less likely to be promoted into those roles, more likely to face career interruptions, and more likely to be judged through subjective standards around commitment, visibility, and leadership style.

This was one of the clearest insights from the panel. Near parity may exist at earlier manager levels, but the higher you go, the fewer women remain in the pipeline. That creates a compounding effect over time.

Vulnavia Kombora argued that this starts earlier than many companies assume. In her view, the issue is not only maternity-related career interruption, but the earlier question of worthiness. In patriarchal workplace cultures, the first promotion into management may already be biased. If women are promoted at a lower rate from the outset, they arrive at middle management with less momentum and fewer opportunities to close the gap later.

Pauline Babel added an important European perspective, especially on the role of maternity and part-time work. Extended parental leave can create a hidden reallocation effect, where the role continues to evolve without the person on leave. When they return, the business may have already mentally moved on. Part-time work, meanwhile, is still often coded as less strategic or less promotable.

That combination matters. The issue is not simply time away from work. It is how organisations interpret that time away.

We must, as leaders, design systems that can fix, or at least limit the damages of events in life. Pauline Babel

Why is the 40 to 49 age bracket especially difficult for women in finance?

Women in finance often face the greatest pressure in their 40s because this is when leadership expectations collide with caregiving demands, social expectations, and reduced access to informal power networks.

One of the strongest data points discussed was that the pay gap widens most sharply in the 40 to 49 age bracket before narrowing again in the 50s. The panel gave this pattern real-world context.

Kombora described this decade as a "hold on" period. By this stage, many women are simultaneously managing older children, ageing parents, senior career expectations, and the invisible emotional load that comes with being socially expected to care first and work second.

She also highlighted something finance leaders do not always say explicitly: many strategic conversations still happen informally. They happen after hours, in social environments, or in situations that are harder to access when caregiving responsibilities fall disproportionately on women. If those conversations shape visibility, trust, and advancement, missing them has a career cost.

This is one reason the gender pay gap can continue widening even without overt salary discrimination. Presence, sponsorship, and informal influence often matter more as careers advance.

What to do this quarter

Identify where senior decisions are really being shaped. If strategic influence happens mainly in informal settings, redesign the process so visibility is not tied to availability outside standard working structures.

👉 Watch the full discussion here

Is maternity the main cause of the finance gender pay gap?

No. Maternity matters, but it is only one part of a broader structural problem that includes promotion bias, sponsorship gaps, workplace norms, and how leadership potential is interpreted.

This was a key nuance in the session. It is tempting to reduce the gender pay gap to time out of the workforce due to maternity leave, but the panel argued that this explanation is incomplete.

In some markets, maternity leave clearly affects career continuity. In others, the bigger issue is earlier sorting into lower-paying firms, lower promotion rates, or the assumption that mothers are less career-oriented. In still other contexts, motherhood may even be seen positively, but women still face systemic barriers before and after that stage.

Alyona Mysko and Kombora both stressed that the real problem often begins before maternity. Women may enter roles with similar pay, but ask for less, get sponsored less, or be assessed differently when promotion opportunities arise.

This aligns with a broader truth in finance leadership: systems that appear neutral on paper can still produce unequal outcomes in practice.

What can CFOs do to reduce the gender pay gap?

CFOs can reduce the gender pay gap by treating it as an operating issue, not just an HR issue. That means reviewing compensation data, standardising promotion decisions, and reducing subjectivity in how performance and potential are assessed.

Pauline Babel made one of the clearest calls to action of the session. Her message to CFOs was simple: look at the data directly. Review compensation and promotion outcomes over the past three years. Do it before transparency regulation forces the exercise.

This is especially relevant in Europe, where pay transparency requirements are rising. But the panel’s view was that finance leaders should not approach this as a compliance exercise. It should be treated as a business improvement initiative.

Several practical levers came up:

• salary grids, where possible, to reduce negotiation bias

• structured promotion and calibration processes across teams

• performance-based increase decisions, rather than rewarding whoever asks most loudly

• better tracking of representation and progression over time

• more explicit sponsorship of high-potential women

These interventions are not complicated in theory. The challenge is doing them intentionally and consistently.

What to do this quarter

Ask your finance function or people team for three cuts of data: pay by level, bonus by level, and promotion rate by level, split by gender. Most companies talk about fairness before they measure it.

👉 Watch the full discussion here

What is the difference between mentorship and sponsorship in finance careers?

Mentorship gives advice. Sponsorship creates access. For women in finance, sponsorship is often the missing lever in pay and promotion progression.

This distinction came through powerfully in Kombora’s remarks. She noted that many women are encouraged to collect mentors, and many do. But advice alone does not change pay or promotion outcomes when decision-making happens elsewhere.

A sponsor is someone who speaks for you in the room you are not in. Someone who actively backs your promotion, supports your raise, or gives you access to strategic work. In environments where assertive women are judged differently from assertive men, sponsorship can become a critical counterweight to bias.

For many finance professionals, this is one of the most actionable career lessons in the entire discussion.

Don't ask for advice. Ask for somebody to be in your corner. Vulnavia Kombora

Can AI help women in finance close the pay gap?

AI cannot solve structural inequality on its own, but it can help reduce subjectivity, increase measurable output, and make performance more visible in ways that strengthen the case for advancement.

One of the most unexpected parts of the conversation was the role AI played in the panel’s solutions. Mysko shared that women in her organisation were some of the strongest drivers of AI adoption, particularly those balancing leadership roles with caregiving responsibilities.

Her example was practical: one leader returning from maternity leave pushed AI adoption to automate repetitive work and improve team productivity. That effort then spread across the organisation as more women shared what they had built and how much time it saved.

The implication is important. In finance teams where output, speed, and measurable impact are rewarded, AI can help professionals do more with less time and show the value of that work more clearly.

Kombora extended the idea further. As leaders become more senior, assessment becomes more subjective. AI can help create more objective evidence of output, especially when visibility is uneven.

AI is not the answer to pay equity. But it may become a tactical advantage in environments where impact must be demonstrated clearly.

👉 Watch the full discussion here

How should women in finance advocate for pay more effectively?

The strongest pay advocacy starts with value, not with the number. Women in finance need to benchmark their worth, articulate their impact clearly, and avoid accepting the first framing of what they are worth.

The final section of the panel focused on career advice, and it produced some of the most practical takeaways.

Pauline Babel reflected on how difficult it was early in her career to separate the value of her work from her value as a person. That distinction matters. Many finance professionals, especially women, are uncomfortable "selling themselves" in compensation conversations, even when their performance justifies it.

Alyona Mysko approached the issue through a sales lens. Her recommendation was to present value first, then discuss price. Define your KPIs in advance, demonstrate what you delivered, and only then talk about salary. That structure creates a stronger negotiation position.

Kombora’s advice was even more direct: do not accept the first offer, and do not let someone else define your market value for you. Small compensation compromises early in a career compound significantly over a lifetime.

What to do this quarter

Before your next compensation discussion, prepare a one-page case with three sections: your measurable impact, your market benchmark, and your ask. Most people enter salary conversations with only the last of those three.

FAQ: Closing the finance gender pay gap

What is the finance gender pay gap?

It is the difference in average pay between men and women in finance roles, driven by salary, bonuses, promotion rates, senior representation, and career progression patterns.

Why does the pay gap widen at senior levels?

Because women are less likely to be promoted into senior roles, more likely to experience career interruptions, and more likely to be assessed through subjective standards around commitment and visibility.

Is maternity the main reason for the pay gap?

No. Maternity matters, but the panel stressed that bias in promotion, lack of sponsorship, and structural workplace expectations often begin shaping the gap earlier.

What can finance leaders do to improve pay equity?

Use salary grids where possible, audit compensation and promotion data, standardise performance reviews, and create intentional sponsorship structures.

What is the difference between a mentor and a sponsor?

A mentor gives advice. A sponsor actively advocates for your promotion, compensation, and access to strategic opportunities.

Can AI help reduce pay inequality in finance?

Not directly, but it can help increase output, improve visibility, and reduce subjectivity in performance assessment.

How should women approach salary negotiations in finance?

Start with clear evidence of value, benchmark against the market, ask proactively, and avoid accepting the first framing of your worth.

👉 Watch the full discussion here

Closing thought: fairness is not self-executing

The most important lesson from this conversation is that progress does not happen automatically.

The gender pay gap in finance is not closing because time is passing. It closes when leaders make systems less subjective, when companies measure progression as rigorously as they measure budget performance, and when women are supported not just with advice, but with active sponsorship.

For CFOs, this is not a side conversation. It is a leadership issue, a talent issue, and a performance issue.

For women in finance, the message from the panel was equally clear: know your value, ask earlier, document your impact, and find people who will advocate for you when the room decides.

CFO Connect is powered by Spendesk, helping finance teams build smarter, more efficient operations with modern spend management tools and better visibility across business spending.

👉 Watch the full discussion here