Gender Pay Gap Report 2017

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1 UK

2 1 Introduction This report reflects data from employees who work within DDB UK Limited the legal entity that includes adam&eveddb, Tribal Worldwide, Gutenberg Global and cain&abel. Central to our success is facilitating a culture and environment where everyone is supported to reach their potential and to succeed. Equality of opportunity is a critical part of that. In analysing our gender pay gap it is clear that men occupy substantially more of our highest paid roles. This is something that we must address and change not because the government now requires us to publish this report, but because it is right and it will make us better as a business. We know that there is not one simple answer. Gaps cannot be closed overnight and not all of the solutions may be within our control. What we can promise is that we will put the same passion and drive into reducing and ultimately closing our pay gap as we put into our award-winning work, and we will welcome effective collaboration across our sector for collective change to be realised. James Murphy Group CEO DDB UK Limited

3 2 Demystifying the Gender Pay Gap In what we believe is a progressive and positive new piece of legislation, UK companies with 250 or more employees are now required by the government to publish specific gender pay gap information. The aim is to reduce any pay gap between men and women by encouraging employers to analyse pay within their own workforce, understand any underlying causes for any gender pay gap and take steps to address it. The gender pay gap is the difference between the average earnings of all men and women across an organisation. Employers need to publish six figures: the mean and median hourly pay gap; the mean and median bonus pay gap; the proportions of men and women receiving bonuses; and the proportions of men and women in each of four pay quartiles. These figures must be calculated using 5th April as the reference date in each year. The gender pay gap is not the same as equal pay. Equal pay focuses on individual roles and is the requirement that men and women are paid the same for carrying out the same or similar work. We are committed to ensuring that we are an equal pay employer. The gender pay gap does not look at individual roles, but looks at how pay and bonuses are distributed across the entire business.

4 3 HOW THE GENDER PAY GAP IS CALCULATED MEAN PAY GAP CALCULATION: ( X - Y) MEN MEAN WOMEN MEAN HOURLY RATE HOURLY RATE x DIVIDED BY MALE HOURLY RATE MEDIAN PAY GAP CALCULATION: x100 Z% LOWEST PAID THE MEDIAN HIGHEST PAID The total qualifying employee headcount across DDB UK on the snapshot date was 530 and the gender split was 53.2% Men to 46.8% Women. AVERAGE HOURLY PAY DIFFERENCE BETWEEN MEN AND WOMEN MEAN MEDIAN 38.1% 34.2% BONUS PAY GAP BETWEEN MEN AND WOMEN Our Gender Pay Gap MALE FEMALE Terminology Explained MEAN MEDIAN PROPORTION OF MEN RECEIVING A BONUS 53.6% 0.0% Mean (average): The mean pay gap is the difference in the average hourly rate of men s and women s pay. 12.8% 87.2% Median (middles): The median pay gap is the difference between the midpoints in the ranges of men s and women s pay. DID NOT GET BONUS GOT BONUS Quartiles: The gender pay quartiles show the proportion of men and women in different pay bands, with the workforce divided into four equal parts (quartiles) according to their pay. Snapshot Date: 5th April is used as the date for calculating the gender pay gap in this report. PROPORTION OF WOMEN RECEIVING A BONUS Bonus Payments: Additional pay relating to bonus payments typically forms part of our most senior team members compensation. Bonus pay is mostly related to performance, but also includes discretionary seasonal bonuses that are payable to all eligible employees. Calculations of mean and median bonus pay use all bonus pay from the twelve months ending on 5th April. 3.6% 96.4% DID NOT GET BONUS GOT BONUS

5 4 Why we have a Gender Pay Gap To address and reduce the gap, we have analysed our data in detail to identify the core contributing factors. It is apparent from this analysis that the most significant factor in our pay gap and median bonus gap is that we have a higher proportion of men than women in the highest paid roles. DISTRIBUTION OF MEN AND WOMEN IN EACH UPPER 76.5% 23.5% UPPER-MID 44.7% 55.3% LOWER-MID 48.9% 51.1% LOWER 32.3% 67.7% MALE FEMALE

6 5 Why we have a Gender Pay Gap The highest paid positions in our business are generally held by people in senior management roles or people in senior creative and technology roles. We have a greater number of men than women in these positions which results from a mixture of legacy, societal and industry specific reasons. GENDER PAY GAP WITHIN EACH 11.4% UPPER 6.6% UPPER-MID Whilst we are acutely aware of this disparity, our ability to make lateral hires of women into these roles has been impacted by a smaller pool of female talent in those areas across our industry. As a result, we have invested in measures to progress women into those roles within DDB UK. But for meaningful progress to occur we need to work as an industry to increase the pool of female talent in the highest paid roles. -0.2% LOWER-MID -1.0% LOWER Addressing the gender imbalance in our top pay quartiles is an absolute priority. Whilst we already have measures and initiatives in place focused on improving this, we know we need to continue to work hard to change the demographics of our business (and our industry) for the better. We are committed to putting that work in. Tammy Einav & Mat Goff Joint CEOs adam&eveddb Addressing areas of gender imbalance within Tribal is of great importance to our leadership team. We will drive initiatives that encourage more women into the digital marketing and technology industry, and I am committed to ensuring that we are effectively identifying the women across our organisation with high potential and supporting them throughout their career to secure more of the highest paid roles. Tom Roberts CEO Tribal Worldwide

7 Claire Bowers Managing Director Gutenberg Global Narrowing the Gap 6 The publishing of this data marks an important moment in time. It shows us that women face different progression barriers in the workplace to men and there are fewer of us in high paying senior leadership roles. We all need to be part of driving change and the right approach is one that puts not just gender but diversity and inclusion more broadly at the front of all our day to day decisions. I m personally excited that this conversation is being elevated and recognise that while change can be a slow process, the publishing of gender pay gap data is certainly a step in the right direction. Our ongoing commitment to getting more women into the highest paid roles is part of our wider Diversity & Inclusion Strategy. We are pleased to confirm that our pay gap has already narrowed over the past 12 months and we feel confident this will continue to reduce as we commit even greater time, resource, energy and attention to the areas summarised on the following pages.

8 7 1 We are committed to ensuring that our current senior team s gender imbalance is reconciled in the future through meritocratic female progression and promotion at DDB UK. Since January, 42% of senior management promotions have been female. We will put a greater focus on developing effective succession plans for female talent to ensure the proportion of men and women occupying the top quartile roles balances in time. As Tom Knox said it s an uncomfortable truth that men dominate creative departments. Only 29% of creative departments are female, in London just 12% of Creative Directors and only 3% of Executive Creative Directors are female. Surprising when 80% of consumption in this country is made by women. For lasting and meaningful change, we need to see gender equality throughout our industry: on the stages at events, with the judges that judge the awards to the creative leaders that write the articles and tell the stories. Narrowing the Gap 2 We need to improve female representation in highly paid senior management, creative, production and technology roles, not only within DDB UK but in our industry. As part of a collaboration with the IPA and Campaign, and in partnership with Twitter, we launched Make the Leap. This called for all companies within the advertising and media world to pledge to achieve certain targets by The purpose of this initiative was to ask businesses to commit to putting diversity and inclusion at the top of their agenda, and to galvanise collective action and progress. Whilst progress is being made, the presence of women in senior creative, technology and production talent pools remains an issue across our sector, and impacts our ability to recruit women into these positions. Knowing this, we must focus not only on recruiting women into these roles but on ensuring a greater number of women are supported to enter, remain and progress into these positions in our industry. As agencies, we need to promote diversity in our recruitment and hiring practices. The female beacons in our business give hope and drive ambition. There is still so much more to do and understanding the barriers is the first step to removing them. Victoria Buchanan ECD Tribal Worldwide

9 8 Narrowing the Gap 3 We endeavour to support female talent to return to work following maternity leave and to progress in keeping with their identified potential by continuing to review and enhance our Family Friendly policies and practices. We are pleased that 83% of women have returned to work following maternity leave over the past three years and we attribute this partly to accommodating flexible working practices. We also recognise that both men and women need to be considered an equal part of this conversation and that, without supporting men to take shared parental leave, the primary childcare responsibilities will continue to fall disproportionately on women and that will have the potential to impact their career progression. In recognition of this, our Shared Parental Leave Policy offers the same level of financial enhancement for men and for women. 4 We will be holding hiring managers accountable for ensuring that 50% of candidates for senior positions are female and endeavouring to always have a woman as part of the interview and selection process. 5 We have mandatory Tackling Unconscious Bias Training. One of the intentions of the training is to reduce the possibility of unconscious bias adversely impacting the diversity of talent either joining the agency or progressing at DDB UK. Flexible hours, career progression and positive workplace policies are all important to women returning to the workforce. And men! Our employees take career breaks for a multitude of reasons and we need to accommodate that or face losing incredibly valued talent. Flexible working policies provide both men and women with the ability to structure their own work/life balance and help to ensure women s careers are not penalised by wanting to play an active part in raising their families. This will not only encourage more women to return to work, but it will enable them to flourish and allow more female talent to rise to senior positions across all areas of our business. Kelly-Ann Maxwell COO Tribal Worldwide 6 We actively support all Omnicom People Engagement Network (OPEN) Diversity and Inclusion initiatives, including Omniwomen. Omniwomen is dedicated to promoting networking and career opportunities for, and developing the skills of, Omnicom s future female leaders. OPEN, and its respective groups, work to foster inclusive and engaging work environments.

10 9 The Future We acknowledge that we have more work to do to narrow our gender pay gap We are committed to this remaining an absolute priority and we look forward to seeing what we trust will be a substantial reduction in our pay gap over time. For authentic, long-term progression to be realised it will take meaningful collaboration across our business, our group and our sector. We welcome working together in partnership to achieve positive change.