Press Release

Forimmediate release

Tuesday16 December 2003

Female Bosses Close Pay Gap

Female directors arenarrowing the wage gap with their male colleagues, a new survey out todayshows. The annual Directors Rewards surveyfrom the Institute of Directors (IoD) reveals the pay gap between male andfemale directors has shrunk by 5% over the last year. A female director nowearns an average of 59,000 compared with abasic salary of 70,000 for a male director.

Carried out for theIoD by Croner Reward, the survey - which is based on a cross-section of IoDmembers (excluding those from the FTSE250) - also shows the average pay increase for directors in general in 2003 was3.5%. The modest increase being a little above inflation and very much in linewith the rest of the workforce.

George Cox, DirectorGeneral of the IoD, said:

"On average the pay increase fordirectors over the last twelve months was just 3.5%. Encouragingly 2002/3 alsosaw the biggest improvement for ten years in the pay gap between male andfemale directors. This gap now stands at 16% - still significant in the market,but a substantial improvement on the 32.5% in 1991."

The survey also foundthat:

ManagingDirectors in small companies received an average pay rise of 3.2% and areforecasting 4% next year.

26% of non-executivedirectors received no increase last year, and of those who did, the average was4%.

75% of ManagingDirectors in large companies reported their pay review was based onperformance. This corresponds to 67% inmedium sized companies and 64% in small companies.

Companiesin the South East pay the average director 12% more than the national rate,whilst those in Yorkshire, the North East and East Midlands pay 11-12% belowthe national average.

Steve Flather, Managing Director of Croner Reward, said:

With pay increases at 3.5% they are once again much in line withthose for other employee groups, as indeed has been the case for the last 10years.

ENDS 16.12.03 No.218

Contact Points:

Richard Taylor, PressOfficer, tel. 020 7451 3264

Mobile and out of hours. 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 07764 883420

Email. press@iod.com

Web. www.iod.com

SteveFlather, Managing Director, Croner Reward, tel: 01785 813566

Vivienne Copeland,Director, Croner Reward, tel: 01785 813566

Email.mailto:surveys@croner-reward.co.uk

Web. http://www.croner-reward.co.uk/

Notesto editors

1.      An executive summary of the Director Reward Survey isavailable from the IoD Press Office on 020 745 13264; press@iod.com

2.      Copies of Directors Rewards 2003/2004 can be ordered fromCroner Reward on 01785 813566. The full survey costs 660.

3. The Institute ofDirectors is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings the experience of business leaders to bearon the conduct of public affairs