The bonus gap is where pay inequality hides

Pay transparency is having a moment. Across Europe and beyond, new regulations are pushing organizations to disclose salary bands, justify pay differences, and confront longstanding inequities. It is a necessary shift and it’s long overdue. But there is a risk that, in focusing exclusively on base salary, companies miss a more elusive and equally consequential driver of inequality: the bonus gap. Bonuses, incentives, and variable pay are often treated as secondary components of compensation. They are not. In many roles, they represent a substantial share of total earnings. More importantly, they are where discretion thrives and bias follows. I learned this early. In my first internship, at a software company, I discovered almost by accident that the male intern who had preceded me—same role and duration—had received a higher bonus. The justification was vague. That was my introduction to how variable pay works in practice. {"blockType":"mv-promo-block","data":{"imageDesktopUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2026\/01\/PhotoLVitaud-169.jpg","imageMobileUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2026\/01\/PhotoLVitaud-11.jpg","eyebrow":"","headline":"\u003Cstrong\u003ESubscribe to Laetitia@Work\u003C\/strong\u003E","dek":"Women power the world’s productivity — it’s time we talked more about it. Explore a woman-centered take on work, from hidden discrimination to cultural myths about aging and care. Don’t miss the next issue — subscribe to Laetitia@Work.","subhed":"","description":"","ctaText":"Learn More","ctaUrl":"http:\/\/laetitiaatwork.substack.com","theme":{"bg":"#2b2d30","text":"#ffffff","eyebrow":"#9aa2aa","subhed":"#ffffff","buttonBg":"#3b3f46","buttonHoverBg":"#3b3f46","buttonText":"#ffffff"},"imageDesktopId":91472264,"imageMobileId":91472265,"shareable":false,"slug":"","wpCssClasses":""}} If organizations are serious about closing gender pay gaps, they must go beyond