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 …

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 Government’s 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


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 22–31% 9–21%

BONUS PAY GAP RANGE

39–57% 9–44%

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)


How we are addressing the Gender Pay Gap

LSEG’S COMMITMENT TO DIVERSITYIn 2016, LSEG’s 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 TREASURY’S WOMEN IN FINANCE CHARTERAs part of our commitment to diversity, LSEG was amongst the 72 initial signatories of HM Treasury’s 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


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 Women’s Network (WIN) leads a career outreach programme for female school and college students.50% of our September 2018 graduate intake is female.

2. RecruitIntroducing an equal opportunity and selection processOver 50 companies in the UK attended our 2017 partner recruiter event, designed to maximise our candidate pool, increase the number of females being hired and aligning the work of all our external partners.

In 2017, we included at least one female in the selection process for all senior manager and graduate placements and we are aiming to achieve this for all positions recruited across the Group in 2018.

4. RetainEncouraging long-term commitment to LSEG at all stages of our employees’ careersWe are a corporate member of ‘Citiparents’, providing all colleagues free access to their career, family and wellbeing resources and events.

We are also conducting a phased culture change programme to promote flexible working across LSEG

3. DevelopDeveloping and encouraging women to achieve their potentialWe provide a comprehensive range of insight, awareness and education programmes to promote an inclusive environment. For example, 60% of participants on our ‘Early Career’ development programme are female.

We also provide access to role-models, career support and progression opportunities across LSEG. In 2017, over 500 colleagues in five countries were involved in a WIN-sponsored mentoring scheme to aid the career progression of our female talent.


External recognition of female talent at LSEG

We are proud of all of the talented women working at LSEG, working to support our strategic ambitions and in doing so, gaining industry recognition for their achievements and serving as role models to colleagues at LSEG and across the City. Recent award recognition includes:

Case Study:Flexible working at LSEG

Liz Neal has been named in the 2018 Timewise Power 50 awards, a roll-call of the UK’s top flexible and part-time workers.

Liz, who is included in the ‘Power Part Timers’ category, joined LSEG in 2005. She switched to a four-day working week after a period of maternity leave, and achieved promotion to her current role on that basis. This has helped her play a major role in promoting a wider choice of working patterns across LSEG – in fact a number of other members of the legal team are now also working part-time or flexibly.

Liz commented: “I’m honoured to have been included in the Timewise 2018 Power 50 awards. Working part-time has made it possible for me to balance a busy and challenging Group role with the other important commitments in my life, whilst still enabling me to progress in my career. I am pleased to be a real example of LSEG’s commitment to initiatives like these which promote and support our diverse workforce.”

Elizabeth NealHead of Legal, London Stock Exchange plc

“Liz is an outstanding example of a leader who works flexibly while providing high quality commercial advice and a seamless service to her clients.” Catherine Johnson Group General Counsel

Diane Côté, Group Chief Risk Officer, named as one of Financial News’ ‘100 Most Influential Women in Finance’ in 2017 for the fourth consecutive year.

Anoushka Babbar, Head of Regulatory Strategy, Information Services Division, won the ‘Young Achiever’ award at the Asian Women of Achievement Awards in May 2017.

Ayuna Nechaeva, Head of Russia, CIS and Mongolia, Primary Markets, listed as one of Management Today’s ‘35 Women Under 35’ in July 2017.

Maryse Gordon, Senior Business Development Manager for UnaVista and Vice Chair of WIN in New York, selected for the ‘Rising Star’ award at the 2017 Women in Finance Awards.

Vidumini Ranasinghe, Head of Strategic Account Management for MilleniumIT, named ‘Business and IT Leader of the Year’ at Sri Lanka’s inaugural 2017 Women in IT Awards.


Statutory Disclosures

DECLARATIONAt London Stock Exchange Group, we are committed to improving diversity and inclusion and we aim to be representative of both our customers and the communities in which we operate around the world. Although our reporting requirements only apply to the UK, we are committed to tracking and addressing any imbalances in representation and compensation for the Group globally. We are passionate about our commitment to employ and invest in the development of a highly diverse, international workforce to deliver on our vision to be the most trusted global markets expert.

I confirm the information and data reported is accurate as of the snapshot date of 5 April 2017.

David WarrenInterim CEO and Group CFO

LSEG Employment Services Limited(340 Employees)

LCH Limited(467 Employees)

Combined population(1,261 Employees)

London Stock Exchange plc(454 Employees)

Hourly Pay Gap Range

Mean Median

22–31% 9–21%

Bonus Pay Gap Range

Mean Median

39–57% 9–44%

Hourly Pay Gap

Mean Median

22% 9%

Bonus Pay Gap

Mean Median

39% 14%

Hourly Pay Gap

Mean Median

31% 21%

Bonus Pay Gap

Mean Median

40% 9%

Hourly Pay Gap

Mean Median

30% 21%

Bonus Pay Gap

Mean Median

57% 44%

52% 48%

Lower Quartile

58% 42%


59% 41%


68% 32%

Upper Quartile

59% 41%

Population

88%

82%

% receiving a bonus payment

54% 46%

Lower Quartile

68% 32%


72% 28%


76% 24%

Upper Quartile

68% 32%

Population

82%

82%


64% 36%

Lower Quartile

78% 22%


82% 18%


87% 13%

Upper Quartile

78% 22%

Population

85%

85%


53% 47%

Lower Quartile

66% 34%


77% 23%


78% 22%

Upper Quartile

68% 32%

Population

72%

80%


Male Female Male Female Male Female Male Female

© March 2018

London Stock Exchange Group plc 10 Paternoster Square London EC4M 7LS Telephone +44 (0)20 7797 1000Registered in England and Wales No. 5369106 www.lseg.com

http://www.lseg.com

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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 …