Beazley plc | 2017 UK Gender Pay Report

Beazley plc | 2017 UK Gender Pay Report

2017 UK Gender Pay Report

Beazley plc | 2017 UK Gender Pay Report

Beazley plc2017 UK Gender Pay Report This report sets out the results of our first gender pay gap analysis for UK employees, performed in line with the new legislation that came into force in April 2017. The report also provides additional analyses to understand the causes of our gender pay gap and describes the initiatives we are implementing to improve our position.

“At Beazley we are committed to building a strong pipeline of female talent as part of our ongoing diversity agenda.” Penny MalikHead of talent management

Gender pay and bonus gapThe table below shows our UK mean and median gender pay gap and gender bonus gap. The gender pay gap figures are based on hourly rates of pay as at the snapshot date of 5 April 2017 and bonuses paid in the 12 months to 5 April 2017.

Mean Median

Gender pay gap 37.0% 37.5% Gender bonus gap 78.1% 52.4%

Proportion of employees receiving a bonusThe table below shows the proportion of male and female employees who received a bonus during the 12 month period to 5 April 2017.

Males Females

Received a bonus 93% 92%

Pay quartilesThe charts below illustrate the gender distribution in the UK across four equally sized quartiles.

Our results for 2017

Upper Lower middle

Upper middle Lower

Males 77% Females 23%

Males 54% Females 46%

Males 70% Females 30%

Males 39% Females 61%

Beazley plc | 2017 UK Gender Pay Report

Understanding our gender pay gapThe gender pay gap at Beazley in the UK arises because we have significantly more men than women in senior positions. This is illustrated by the chart below which shows the distribution of men and women across the different levels of the organisation.

Since pay and bonus levels are higher for senior positions, the higher proportion of men in senior roles means that the average pay for men across the UK organisation is higher than for women. Whilst we do have a gender pay gap, men and women performing the same role, in the same area, with the same experience and performance receive equivalent pay.

The charts below set out the UK mean gender pay gaps as calculated for the four equally sized quartiles shown on the previous page.

These illustrate that the gender pay gap varies significantly at different levels within the organisation. Overall we are making progress and have seen the pay gap for base salaries reduce from 45% to 34% since 2013 as a result of more women being appointed into senior management positions.

Our bonus gap Bonuses at Beazley come in several forms. One form of bonus included in our bonus pay gap data is our long-term incentive plan (LTIP). The LTIP is designed to reward the senior management team for performance over three and five years.

The bonus pay gap figures we report include LTIP awards that were made five and three years prior to April 2017. At the time of these awards the number of women in senior management positions in the UK was considerably less than our current level of 27%. This percentage is expected to continue to rise over the next few years in line with our global goal of having at least 35% of women in senior management during 2020. Given the long-term nature of these plans it may take a few years for the increased diversity of participants to be reflected in the bonus gap figures.

Addressing our gender pay gapAt Beazley we believe a diverse and inclusive workplace will support our vision for growth and help us to outperform the market. We are committed to encouraging people with diverse perspectives to thrive at all levels of our business, in an environment that supports and celebrates differences. We continually review our approach to diversity globally and our aim is to nurture employees across the group by giving them the tools and opportunities to progress their careers within Beazley.

The board has agreed global goals for gender diversity for both the board and the broader organisation. We achieved our goal of having three female directors by the 2017 AGM. The board established new goals of having at least 35% female senior managers within the organisation during 2020 and 33% female board members at group level by 2021. We currently have 29% female senior managers across the organisation.

In 2017 to support our diversity agenda and help build a balanced and fair financial services industry, Beazley became a signatory of the HM Treasury women in finance charter. We will work with other signatories to achieve balance across the sector and by joining the charter have reconfirmed our commitment to the board’s stated gender diversity goals. In addition, by signing up we have committed to the following:

1. Designating one member of our senior executive team as responsible and accountable for gender diversity and inclusion. Martin Bride, the group finance director, is the executive sponsor.

2. Setting internal targets for gender diversity in our senior management.

3. Publishing progress annually against these targets in reports on our website.

4. Linking the pay of the senior executive team to delivery against the internal targets on gender diversity.

We annually review succession plans to ensure we have a diverse pipeline for senior management roles across the organisation. We support this through our focus on recruitment and learning and development.

Males Females

Executives

Senior management

Underwriting

Claims

Support

91%

81%

71%

61%

52%

9%

19%

29%

39%

48%

39% 61% 54% 46%

77% 23%70% 30%

Lower (-8.8% pay gap) Lower middle (8.7% pay gap)

Upper middle (0.7% pay gap) Upper (20.9% pay gap)

Males Females

Beazley plc | 2017 UK Gender Pay Report

RecruitmentWe have increased our activities to support diversity recruitment across the group and we are looking to partner with organisations that promote diverse recruitment globally. Specifically we aim to ensure that:

• We work with our partner organisations to ensure we are being presented with gender-balanced CVs at application stage.

• We are promoting the flexibility of roles to be more attractive to a wider group of people; and

• Our candidate shortlists are gender-balanced.

Learning and development for women at Beazley We have programmes in place to support women throughout their careers at Beazley:

• Training and awareness programmes have been delivered focussing on unconscious bias and on helping women overcome barriers that may hinder the progress of their careers.

• All new managers undertake mandatory management training, which will include modules on diversity recruitment and unconscious bias.

• We have a bespoke modular programme on our learning management system to support women in the workplace – “Women at Work”.

• We run a bespoke course “Women in Leadership” that supports women moving into senior management roles.

• We encourage female participation in our senior strategic training programmes and during 2017 37% of the participants from the UK were women.

• We have tailored coaching and mentoring to support individuals developing as leaders within the business.

• We are building “Career for Women” bespoke training targeted at women starting out on their career journey.

DeclarationWe confirm that Beazley Management Ltd’s gender pay gap calculations are accurate and meet the requirements of the regulations.

Penny MalikHead of talent management

CBTM001_UK_03/18

Andrew HortonChief Executive Officer