CMS releases findings on gender pay gaps amongst medical scheme CEOs

Pretoria - Transformation targets in the medical scheme industry have not been adequately analysed until recently. The latest research study published by the CMS indicates disparities in gender pay among the medical
schemes CEO’s.

Currently, there are seventy (70) medical schemes registered and regulated under the Medical Schemes Act, and when combined, generate more than R226 billion in gross contribution annually. The study analysed fifty (50) of the medical schemes and most interestingly, white CEOs still dominated relative to their black counterparts. According to the study’s analysis, of the fifty (50) medical schemes, there were thirty-two (64%) white CEOs as opposed to eighteen (36%) black CEOs.

Against this backdrop, the study also found that the median pay of CEOs was higher in open schemes than in closed schemes. In large schemes, the pay gap between male and female CEOs was 39%; while in the small schemes was at 6%.’

When adjusting for gender, the results further indicated that twenty-three (46%) of the CEOs were females, while twenty-seven (54%) were males. CEO fees increased with scheme size but differed by scheme type. Open schemes paid more than restricted schemes.

Specifically, the study found that the median pay gap between female CEOs in large and medium-sized medical aid schemes was 40%, indicating that female CEOs are paid significantly less than their male counterparts in these organisations. Furthermore, the study found that the pay gap between large and small schemes was even wider, with a median pay gap of 81%.

For CMS, these findings were concerning because they suggest that not only are women in leadership positions in the medical aid industry paid less than men, but there is also significant variation in pay within gender groups.

When taken into consideration, the study findings alarms that there may be other factors at play beyond gender that are influencing pay disparities such as company size, industry experience, or other factors It is therefore important for the medical schemes industry to address these disparities in order to promote fairness and equality in the workplace.

As medical schemes strived to meet transformation and B-BBEE scorecards, representation of black women was blatantly lacking. The CMS along with the B-BBEE Commission was working together to ensure medical schemes become complaint to the transformation codes.