UK Gender Pay Gap Report - lseg.com London Stock Exchange Group plc UK Gender Pay Gap Report 2017 How we are addressing the Gender Pay Gap continued At LSEG, we

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  • UK Gender Pay Gap ReportLondon Stock Exchange Group March 2018

  • 01 London Stock Exchange Group plc UK Gender Pay Gap Report 2017

    Welcome to our first UK Gender Pay Gap Report

    MESSAGE FROM DAVID WARREN, OUR INTERIM CEO AND GROUP CFOAt London Stock Exchange Group (LSEG), our vision is to be the most trusted global markets expert. Our values of Integrity, Partnership, Innovation and Excellence are an integral part of this ambition and drive the way we behave as individuals and as a global company.

    We are committed to improving diversity and inclusion, not only within the Group, but across the financial services industry and in the communities in which we operate globally. We firmly believe that diversity is a key driver of innovation, as well as individual and Group development, and we welcome the UK Governments commitment to gender equality and the new UK reporting requirement.

    The Executive Committee and I, as Interim CEO and Group CFO, are in agreement that while progress has been made, our gender pay figures need improvement and we are committed as a team to focus on diversity as a strategic objective. While we are pleased with the steps taken so far to focus on these issues, we acknowledge that there is still more work to be done to achieve the results we would like to see. We are determined to improve representation at senior, middle and junior roles through attracting and recruiting diverse high calibre employees; providing support and opportunities to promote an inclusive environment and enable all colleagues to achieve their potential.

    David Warren

    David WarrenInterim Group Chief Executive Officer and Group Chief Financial Officer

    Understanding gender pay gap reportingMEAN GENDER PAY GAPThe mean gender pay gap is the percentage difference between average hourly earnings for men and women.

    Median Gender pay gapThe median pay gap is calculated by arranging the hourly pay rates of all males and females from highest to lowest and finding the percentage difference between the middle earning woman and the middle earning man.

    Number of male employees

    Male

    The difference

    Mean male hourly pay

    Mean hourly pay gap

    FemaleNumber of female employees

    Mean female hourly pay

    Median hourly pay gap

    Male

    Lowest paid Highest paid

    Female

    + + + +

    =

    =

    =

    + + =

    The difference

  • 02 London Stock Exchange Group plc UK Gender Pay Gap Report 2017

    Our headline Gender Pay Gap Figures

    Numbers are reported for London Stock Exchange plc (454), LSEG Employment Services Limited (340) and LCH Limited (467), which covers a total of 1,261 people across the United Kingdom. Our full statutory disclosures for each entity for the reporting period 6 April 2016 to 5 April 2017 are shown on page 6 and our headline gender pay figures are shown below.

    LSE plc, LSEG ESL and LCH Ltd

    Mean Impact Median

    PAY GAP RANGE 2231% 921%

    BONUS PAY GAP RANGE

    3957% 944%

    EMPLOYEES IN EACH PAY QUARTILE (COMBINED)

    WHY DOES OUR PAY GAP EXIST? While we do not differentiate pay between men and women for equivalent roles, there is an under-representation of women in senior roles, as shown by the data in our report. This under-representation directly impacts the headline gender pay figures, particularly in the upper quartiles as outlined opposite, whereas in the lower and middle quartiles the pay gaps are significantly less, and in some cases negative.

    Our mean pay gaps are higher than our median pay gaps because of the distorting impact of the very highest earners, the majority of whom are male. The pay of these individuals skews the overall average figures and because bonuses at LSEG tend to increase with seniority, the impact is compounded.

    Our figures shown on this page include awards paid out under our Long Term Incentive Plan (LTIP), a three-year scheme designed to align the interests of senior business leaders to the long-term performance of the Group. Our figures reported here include 2013 LTIP awards that were paid out during this April 2016 to April 2017 reporting period which, due to an extremely strong corporate performance and the doubling of our share price over the period, paid out well. As most of the recipients were senior male business leaders, this significantly exacerbates the pay gap.

    We are increasing our representation of females at business leadership levels through a number of initiatives as detailed on pages 3 and 4 and expect to see an improvement in our figures in the coming years. With an increased number of senior females, there will be a knock-on effect for bonus and LTIP awards. However, it will take time to see improvements, especially in respect of LTIPs, where the impact will take a minimum of three years to materialise.

    REPORTABLE POPULATION (COMBINED)

    68%

    3

    2%

    Male: 68%, 852 Female: 32%, 409

    Pay Gap by quartileMean Median

    Male Female

    32% 7%

    1% -3%

    -1% -1%

    1% 0%

    76% 24%

    Upper Quartile(Highest Earning)

    72% 28%

    Upper Middle Quartile

    68% 32%

    Lower Middle Quartile

    54% 46%

    Lower Quartile(Lowest Earning)

  • 03 London Stock Exchange Group plc UK Gender Pay Gap Report 2017

    How we are addressing the Gender Pay Gap

    LSEGS COMMITMENT TO DIVERSITYIn 2016, LSEGs Executive Committee formed the Diversity and Inclusion (D&I) Committee. The D&I Committee is chaired by our Group Chief Risk Officer and comprised of Divisional Business Heads to enhance our focus on diversity and inclusion and its impact on Group performance. Gender is one key area of focus of our diversity programme. The D&I Committee oversees our investment in developing diversity in the Group including, importantly, our female talent and succession pipeline. These initiatives have the support and focus of colleagues throughout the Group.

    HM TREASURYS WOMEN IN FINANCE CHARTERAs part of our commitment to diversity, LSEG was amongst the 72 initial signatories of HM Treasurys Women in Finance Charter, setting a stretch goal as a Group to increase female representation for senior management and for our overall population from 30% to 40% globally by the end of 2020. Since our commitment to the HMT Women in Finance Charter in 2016, our female representation both overall and at senior management level has increased from 30% to 33%. We are working hard to achieve our 40% goal by 2020 and are also confident that our initiatives will enable us to drive real change within our organisation.

    As Interim CEO and Group CFO, I am leading our efforts to achieve this stretching target, reviewing plans and progress against short, mid and long-term divisional targets with each Executive Committee member on a quarterly basis. David Warren Interim Group CEO and Group CFO

    PROVIDING THOUGHT LEADERSHIP IN THE INDUSTRY:In February 2018, we launched the FTSE Women on Boards Leadership Index Series, which increases exposure to companies based on the strength of their gender diversity at the board level in addition to how well they manage their wider social impact.

    This is another demonstration of our commitment to promote strong stewardship practices and market standards. Mark Makepeace CEO of FTSE Russell

    FEMALE REPRESENTATION

    Our goalTo increase our female representation both overall and at senior management level from 30% to:

    40%globally by the end of 2020

    40%

    33%

    30%

    2020

    2017

    2016

    Actual Target

  • 04 London Stock Exchange Group plc UK Gender Pay Gap Report 2017

    How we are addressing the Gender Pay Gap continued

    At LSEG, we believe that diverse teams create opportunity, mitigate risk and are a catalyst for new ideas.

    As such, we strive to be an employer of choice for the diverse talent that we work to recruit, develop, mobilise and retain in a highly competitive market. We strive to understand the root cause of the gender imbalance and recognise there are multiple factors to address. The D&I Committee oversees our investment in developing our female talent and succession pipeline and these initiatives have the support and focus of colleagues throughout the Group. Some key examples of our initiatives are shown opposite:

    DRIVING CHANGE WITHIN LSEGWe recognise that to enable and reinforce real change both within our organisation and the industry as a whole, a cultural shift is essential. To drive this within LSEG, we have introduced global mandatory training designed to reduce unintended discrimination and increase inclusion at all levels. For example, Unconscious Bias awareness workshops have been completed across the Group and we are conducting a phased launch of a culture change programme to promote flexible working across LSEG.

    Open Mindset training was attended by 100% of our Executive Committee and managers reviewing pay decisions in 2017 to reinforce understanding and drive cultural and behaviour change from the top of the organisation.

    In 2018, we are launching Futures, a career framework and core capability model to provide a transparency of next steps and career conversation skills for all line managers. We are also initiating a female progression programme which will not only aid career development, but also address any unintended barriers to advancement and promotion.

    1. AttractAttracting female talent to LSEG by promoting our strong culture and career opportunitiesWe partner with specialist agencies to target females seeking flexible working, internships and returning mothers. In addition, our Womens Network (WIN) leads a career outreach programme for female school and college students.50% of our September

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