42% 19% Overview. Percentage of female employees within the company.

Transcription

1 Gender Pay Gap REPORT

2 P2 Overview Under new legislation, UK employers with more than 250 employees are required to publish their gender pay gap. The data Warner Music UK (WMUK) shares here recognises the required snapshot date of 5th April. We support the transparency of the annual reporting requirement and, to that end, have also voluntarily included data from January. Our current gender pay gap numbers make starkly clear the need for us to accelerate the pace of change within our company. For the past three years, we ve been focused on making WMUK a more dynamic and forward-thinking organisation. While we ve made real progress in many different areas, we re acutely aware there s still much more work to do, especially if we are to be as diverse and inclusive as we aspire to be and if we are to increase the number of women in leadership roles. Our pay gap is not an equal pay issue. For us, equal pay for equal work is a fundamental principle, just as it s, rightly, a legal requirement. For the avoidance of doubt, Warner Music UK is confident that it adheres with the equal pay criteria set out in 2010 s Equality Act. Our median gender pay gap, at 21%, sits slightly over the UK national average* but our larger mean gender pay gap is influenced by the imbalance of men and women in our senior leadership roles. Within these roles, both pay and bonus are heavily linked to the delivery of commercial performance, and therefore show greater variance than at other levels of our business. We re attracting more women than men in more junior positions, but we re not seeing enough of them progress through the organisation to the highest paid, leadership roles. Rectifying this trend is an urgent priority. We continue to look forensically across our entire company, from many different perspectives, to activate the right Diversity & Inclusion strategies and to ensure mindful action is happening every day. Meaningful and sustained change will take time, serious investment and consistent focus. We re comitted to making the right changes and working towards closing this gap. 42% Percentage of female employees within the company. + 19% % Change of women now working in leadership roles. (In 9 months from April to Jan ) Masha Osherova Executive Vice President, Human Resources Warner Music Group *18.4% - Average national median gender pay gap, all employees. Office of National Statistics

3 P3 What Is Our Gender Pay Gap and How Is It Improving? These figures include the data for Warner Music UK: our frontline, catalogue and distribution labels and commercial business support units within the UK Recorded Music organisation in line with the reporting requirements. In terms of bonus participation, all of our permanent employees are eligible for our company bonus scheme. Median gender pay gap Mean gender pay gap Median gender bonus gap Mean gender bonus gap Gender Pay Gap (median) 49% Gender Pay Gap (mean) 21% 44% 82% Gender bonus Gap (median) Gender bonus Gap (mean) Proportion of male and female employees in WMUK receiving a bonus

4 P4 Why Do We Have A Gender Pay Gap? Analysis demonstrates that our gender pay gap is driven by the imbalance of men and women in our senior leadership and highly paid specialist roles. While women occupy 42% of all roles, just over 16% sit in senior management or leadership positions. Men and women are paid equally for doing equivalent jobs across the company. In terms of bonus participation, all of our permanent employees are eligible for our company bonus scheme. However, eligibility each year is determined by an individual s start date - new employees starting on the 1st July or later are not eligible for a bonus until the following financial year. The disparity in male and female bonus participation indicates that more female employees joined after this threshold date. Gender distribution by quartiles % April TOP UPPER MIDDLE LOWER MIDDLE LOWER % January TOP UPPER MIDDLE LOWER MIDDLE LOWER *The figures set out above have been calculated using the standard methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations.

5 P5 How Are We Closing The Gap? Our senior management team s commitment to delivering long-lasting and meaningful change is profound. However, we recognise that achieving this goal is only possible if we re engaging people at all levels of our company. To that end, we ve created employee-led working groups - our Diversity Taskforce as well as the more recently formed Women and Parenting Networks. These groups have a mandate to propose and enact transformational programmes and events, as well as shape our Diversity and Inclusion strategy and future initiatives. While the gender pay gap analysis has helped pinpoint areas for improvement, additional insight is necessary if we re to successfully break down any and all barriers to gender equality. An extensive, global employee survey will be launched this summer and the results will act as a guide to help prioritise our solutions. Our current focus lies in 3 key pillars, aimed at improving diversity and inclusion throughout the organisation. These are: Refining Our Policies, Improving Our Recruitment and Developing Our People Within these, some initiatives and working groups are more established than others. Yet collectively, they are already having a significant impact on our business, acting as the bedrock for our long-term Diversity and Inclusion strategy. A company with real diversity and equality among its people and its leadership is a healthier, happier, more successful business. We will continue to invest heavily in sustained action, broader learning and greater awareness at every level of our company in order to close our gender pay gap and to create an inclusive culture.

6 P6 1. Refining Our Policies EMPLOYEE CODE OF CONDUCT We ve launched a new version of our Code of Conduct, detailing our individual and collective responsibility to maintain a welcoming, professional and inclusive work environment. In addition to regular online education, every employee within our UK company will undergo thorough, in-person training on our Code. MATERNITY/PATERNITY POLICY WMUK is below the national average when it comes to the percentage of mothers returning to work. This has impacted the make-up of our leadership teams and the numbers of our existing female talent. Through more flexible working options, additional mentorship and support with childcare, we will make it more attractive for people to remain at WMUK after starting their families. - Masha Osherova Executive Vice President, Human Resources Warner Music Group As a result, we re implementing a revised parental leave approach, offering enhanced and equal benefits to both parents. Through more flexible working options, additional mentorship and support with childcare, we will make it more attractive for people to remain at WMUK after having children. COMPENSATION & BENEFITS Our bi-annual salary and benefits reviews will continue to be informed by additional third-party data from an independent Human Resources consultancy. This provides added objectivity to our decision-making process, and helps us better understand employee expectations and industry norms.

7 P7 2. Improving Our Recruitment ADDRESSING UNCONSCIOUS BIAS We believe individual training is crucial to attract and retain candidates from more diverse backgrounds. Recruitment figures for demonstrate a more gender balanced intake: Our senior management, as well as their entire teams, will all join workshops around Unconscious Bias; to understand and dismantle the stereotypes that affect our individual and collective behaviours. MORE DIVERSE CANDIDATE POOLS We re increasing our chances of engaging a more diverse candidate pool. This includes our use of the augmented platform, Textio, which allows us to create job descriptions that are gender neutral to attract more diverse talent. In particular, we re already seeing a significant impact in the recruitment for our early career roles, with a greater breadth of candidates, leading to a more balanced intake of women. 53% Women 47% Men

8 P8 3. Developing Our People BESPOKE INDIVIDUAL TRAINING In 2014, we launched a new, sophisticated suite of personal and professional training programmes designed to enhance career development at all levels of the organisation: Mix and Master offers a range of bespoke programmes and initiatives, ranging from Power Chords (a set of business acumen workshops), to Next Note (which teaches management skills), to Sound Judgement (which covers soft skills such as creative thinking and problem solving). This structural training helps to build the skills needed for career progression. Since its inception, we estimate that our Mix and Master programmes have already reached 75% of our female employees at WMUK. 75% Female employees reached through the Mix and Master programme. 41% Female participants in our leadership development programme, Top Line. Top Line is an annual, year-long leadership development programme for our senior executives, designed to grow, strengthen, and refine leadership skills and to support our succession planning process. In the 9 months from April to January, we have seen a +19% change in our female leadership at WMUK. FEMALE MENTORING SCHEME In, we began a female mentoring scheme, which draws on expertise from across the company, to support the ongoing development of our female employees and to identify future leaders. Our Mentee Alumni are continuing to participate in the programme as mentors for our internship intake this summer.

9 P9 Our Future There is a pressing need and desire for accelerated change at Warner Music UK. We know that building an inclusive, diverse culture is not only a moral imperative, it s integral to our commercial and creative success. We re deeply committed to truly empowering all our people to reach their full potential, regardless of their identity or background; to work in a safe, supportive and inclusive environment; and to be fairly rewarded and recognised for their work. Over time, as we strengthen and expand the measures laid out in this document, the diversity of both our leadership teams and our entire organisation will more accurately reflect our company values, as well as the breadth and depth of our roster of artists and their many and varied global audiences. The information in this report is accurate and prepared in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations