CooperVision UK Gender Pay Gap Report 2018

Transcription

1 CooperVision UK Gender Pay Gap Report 2018

2 Foreword Welcome to our second annual UK Gender Pay Gap Report, based upon our payroll data as of 5th April In the words of Al White, the Cooper Companies President and CEO: We are committed to building and sustaining a culture of inclusivity where the diversity and drive of our people directly contributes to our long-term business success. To succeed in this endeavour, we are elevating the discussion amongst our leaders, building awareness through education, being advocates for our female leaders, integrating inclusive practices into our culture and how we operate each day as well as constantly evaluating our progress. Details of all of these activities are shared in this report. We are proud of what we have already achieved, whilst recognising that we still have much work to do. To find out more about career opportunities with CooperVision in the UK and all around the world, please visit: coopervision.co.uk/careers Cliff Mills Director, UK Manufacturing Debbie Olive Country Manager, UK & Ireland Martin Percival HR Director, EMEA Commercial We confirm that the information and data reported are accurate and in line with the UK Government s Equality Act 2010 (Gender Pay Gap Information) Regulations Page 2 of 7

3 Introduction The gender pay gap is a straightforward comparison between the average pay for the male and female employees of CooperVision, regardless of which part of CooperVision they work in or the roles they perform. The specific details of CooperVision s gender pay gap calculations are presented later in this report. Like many other UK companies reporting their gender pay gap, it is a fact that CooperVision employs more males than females in senior positions. This drives our gap findings as the senior positions in most companies reward with higher basic and variable pay (such as bonus opportunities and equity). As you will see from our results, our two lower quartiles remain broadly equally divided between male and female employees, with the gap widening for the two upper quartiles. Context In the UK, CooperVision employs over 2,500 people of 62 nationalities across a very wide range of Manufacturing, Operations, Commercial, and Global Support Function roles. Each of these roles have different characteristics, but all support the same shared purpose that we have in CooperVision globally: to help improve the way that people see each day. To ensure that CooperVision continues to achieve our purpose, it is critical that we continue to have the right individuals in the right roles. We recognise the economic as well as societal benefits of ensuring that we operate in full consideration of inclusion and diversity. Important Inclusion and Diversity Activities Below, we report on some of the important Inclusion and Diversity activities that we are undertaking which we believe will help to narrow our gender pay gap results over time. We anticipate the beneficial impact of these activities will be more immediately visible in the day-to-day business, with the change in gender pay reporting seen over a longer period of time. This is mainly due to the retrospective nature of the gender pay calculations, plus the performance period of some elements of variable pay which are used in the calculations. More information on this is contained later in this report. Visible Leadership, Passion and Commitment Leaders have committed to embracing the Inclusion and Diversity framework and becoming champions for their divisions of CooperVision, taking opportunities to raise this in their activities and introducing and supporting change where appropriate. Actions include leaders talking about Inclusion and Diversity in their own words in meetings and presentations: why it is important, what we are focused on doing, and providing their own personal perspectives. For example within Human Resources in the UK, we are reviewing relevant policies which support the operation of the business, such as family friendly policies. Following the successful introduction of Flexible Working practices in parts of our Manufacturing operation, we are also reviewing the results of a Flexible Working trial in parts of our Operations and Commercial divisions. We plan to launch a variety of schemes tailored to meet the different needs of various parts of our business later in Page 3 of 7

4 Employee Education Senior leaders in the UK are participating in Inclusion and Diversity training, including building awareness of unconscious bias and how to build inclusive cultures. We encourage participation in our global Inclusion and Diversity learning programmes and the global communities of practice. We are also requiring every Vice President and above to participate in Inclusion and Diversity education this year. For example this also means that we will ensure that our Inclusion and Diversity focus is integrated into existing training programmes (such as our new hire induction and in both our senior-level and mid-level leadership development programmes). Championing Diverse Populations We recognise where our diverse employee population is now, including the good work that is being carried out in many different areas within the UK. Within the 62 nationalities employed by CooperVision in the UK there is an average length of employment of 9.25 years, with a wide range of lived experiences and success stories. We are exploring how we can participate in external industry and wider business groups plus local awareness raising activities to help to bring more public visibility to our purpose and work and to further help to encourage and embed the Inclusion and Diversity agenda in CooperVision. For example this means identifying our diverse talent who could be active participants on key internal projects or steering teams, plus understanding and sharing best practices in day to day activities around the UK and across the global group. Talent Management We always aim to ensure that there is a diverse list of candidates for open roles, that interview panels are also diverse, and that job adverts and postings use inclusive language and are reflective of the organisation that we believe we should be. We provide those identified as high performing talent with additional resources such as coaches, mentors, and sponsors, and assist leaders in actively participating in career development plans for themselves and their teams. For example our recruitment teams are testing tools to help to ensure that job descriptions use gender neutral language. They are also reviewing more closely the job fair opportunities that we attend, such as the university fairs in and around southern Hampshire where the majority of our activities and people are based in the UK. We will also model the anticipated results of our succession planning activities to help us to understand the likely shape of the organisation in the future, and to help to ensure that we consider Inclusion and Diversity in the resulting recommendations for further action or reviews. Page 4 of 7

5 Metrics We are developing our regular management reporting on recruitment, as well as on employee movements (like promotions) to ensure that diversity - and in particular, gender diversity - is more widely understood and actively considered across the business. For example we will track both the diversity of candidate pools and of interviewer panels. We will also ensure employee engagement surveys include questions to help us to understand current views on Inclusion and Diversity. Our Gender Pay Gap Data as of 5th April 2018 All companies in the UK with 250 employees or more have a statutory legal requirement to report annually, in broad terms, the difference in average earnings of their male and female employees. This is entitled the gender pay gap and is defined as being the difference in mean and median hourly pay, as well as bonuses, between men and women. The data we are obligated to report is quite broad and at a high level. What it does not take into account is individual performance, skill sets and education levels; factors that can all impact the pay of an individual. Gender pay differs from equal pay. Equal pay is a direct comparison of the pay of two people, or groups of people carrying out the same or equivalent work. We regularly review our pay practices to ensure that there are no inequities in the pay of men and women in the same roles. The gender pay legislation sets out which elements of pay are included and excluded for both the gender pay and gender bonus calculations. For example for gender pay, those on maternity and paternity pay, sick pay and unpaid leave are excluded. Although CooperVision has a diverse number of operations within the UK, all employees are employed by CooperVision Manufacturing Limited, so there is only one legal entity to report. Summary We are pleased to report that this year s results, published in the tables overleaf, show a slight narrowing of the gender pay and bonus gap, although recognise that the results are relatively volatile. Whilst narrowing, we also recognise the material bonus gap. This is because more significant bonus opportunities (including the equity-based long-term incentive plans) are predominantly awarded to senior management employees and above. This is a practice consistent with many other companies and results in more of their total pay being dependent upon the overall results of the company. The activities we outline in the pages above represent the beginning of a journey which we expect to be, in time, reflected in more females being appointed to more senior roles within CooperVision and so narrow the gender pay and bonus gap results. Page 5 of 7

6 Gender Pay Gap Reporting Quartiles Male Female Male Female Upper Quartile 73.9% 26.1% 74.1% 25.9% Upper Middle Quartile 59.1% 40.9% 63.5% 36.5% Lower Middle Quartile 51.3% 48.7% 50.0% 50.0% Lower Quartile 48.2% 51.8% 48.9% 51.1% As we have noted earlier in the report, the gender division shown in the upper and upper middle quartiles are what drive the gender pay and gender bonus gaps. We believe that, over time, the important Inclusion and Diversity Actions highlighted earlier in the report will help to bring a positive change to these numbers. We will continue to monitor their effectiveness, evolving our responses where appropriate. As part of our efforts for continual improvement we have engaged an independent third party specialist to review our calculations for this year and our prior year submission. In accordance with their review, the 2017 numbers have now been re-stated on the Government s website. Hourly Pay Report Mean Median Definition The mean gender pay gap is the difference in average hourly rates of pay that male and female employees receive. It is calculated by adding each gender s pay figures together and dividing by the number of employees of that gender. The median gender pay gap shows the difference in the midpoints of the ranges of hourly rates of pay for male and female. It is calculated by ranking all the figures in descending order from the highest to the lowest and taking the figures in the middle of the list Male pay is 18.3% higher than female pay. Male pay is 14.5% higher than female pay Male pay is 19.6% higher than female pay. Male pay is 15.6% higher than female pay. Page 6 of 7

7 Bonus Pay Report Mean Median Definition The mean gender bonus pay gap is the difference in average hourly rates of bonus pay that male and female employees receive. It is calculated by adding each gender s bonus pay figures together and dividing by the number of employees of that gender Male bonus pay is 75.7% higher than female 2017 Male bonus is 83.6% higher than female The median gender bonus gap shows the difference in the midpoints of the ranges of hourly rates of bonus for male and female. It is calculated by ranking all the figures in descending order from the highest to the lowest and taking the figures in the middle of the list. Male bonus pay is the same as female Male bonus pay is the same as female The table below shows the proportion of men and women who received bonus payments the overall proportion has reduced materially in large part due to the smaller number of those qualifying for a 5, 10, 15, 20 or 25 year long service award. Historical trends in recruitment levels will always drive fluctuation in the numbers of these awards granted each year Male Female Male Female Proportion Receiving Bonus 27.8% 27.5% 46.2% 43.0% CooperVision is successful because of our diversity and we are stronger for the differing views this brings. We look forward to presenting our future results as we continue to focus on these important areas. CooperVision Manufacturing Ltd, Rewards Management Human Resources, South Point 4, Ensign Way, Hamble, Southampton, SO31 4NH. CooperVision Manufacturing Ltd, April Page 7 of 7