Gender pay gap report March 2018
Introduction As you will be aware, new legislation is now in force which requires employers with more than 250 employees to publish their gender pay gap. Our results, which are set out below, reflect the history of our firm and the wider financial services industry. I want Rathbones to be a place where everyone has the opportunity to build a successful career and find the right balance between work and family or personal life. Diversity and inclusion is a key ingredient in growing a strong and successful business. Increasing the transparency around the gender pay gap is a positive first step towards achieving a more equitable outcome. In recent months, we have made good steps towards making improvements to encourage diversity, and gender diversity in particular, within Rathbones. However, we still have a long way to go. It will take time, but I and my colleagues are committed to tackling the causes of our gender imbalance by working to attract and retain more senior women, to remove any potential unconscious bias in our behaviours, and actively create a culture of inclusion across the firm. Philip Howell, Chief Executive 2
Understanding the gap Understanding the gap What is the gender pay gap? A gender pay gap is a measure that shows the difference in hourly earnings between women and men across the organisation, regardless of the nature or seniority of their work. Why does Rathbones have a gender pay gap? A gender pay gap does not show the differences in pay for the same or similar jobs. This is equal pay. Equal pay ensures men and women are paid equally for work of equal value. Rathbones does not pay women less than men for comparable jobs (equal pay). We conduct regular analyses to ensure that men and women are paid equally for the same work. Although Rathbones employs 51% men and 49% women, we have always had a much greater proportion of men in senior roles. This drives our gender pay gap figure, and very much reflects a general picture across the entire financial services sector. The situation is improving, but we also have low turnover in senior roles which means our ability to change our gender balance is slower than we might wish. Similarly, our business model is built around long-term relationships with clients held for many years, which again means that change can be slow to happen. Senior roles We do, however, have a gender pay gap. Why is the gender pay gap being measured? The gender pay gap is essentially a proxy of measuring the way an organisation is made up. By asking companies to disclose their gender pay gap, it is possible to get a rough sense of the proportions of senior men and women within organisations. While the lack of gender diversity is an industrywide problem, we do recognise our own place in this trend, and strongly believe it s our responsibility to improve both our own internal gender pay gap, and contribute to improvement across the industry as a whole. Junior roles This schematic is indicative only and is not to scale. Men Women 3
Our results Our results Gender Pay Gap reporting 5 April 2017 snapshot date The mean and median pay gaps show the difference in the average pay of all men and women, regardless of their role, across Rathbones. The mean pay gap is calculated by comparing the average hourly pay rate for men with the average hourly pay rate for women. The median pay gap compares the mid-point in the entire range of hourly pay for men with the same for women. To find the median, we list the hourly pay of men and the hourly pay of women, in order of lowest to highest. The median gender pay gap is the difference in pay between the mid-point of each list. Hourly rate of pay Mean hourly rate of pay All full-pay relevant employees Median hourly rate of pay All full-pay relevant employees GAP GAP 46.5% The mean difference in average hourly pay between men and women 47.2% The median difference in average hourly pay between men and women Quartile pay Proportion of gender per quartile All full-pay relevant employees Lower (274) Lower middle (274) 83 (30%) 191 (70%) 98 (36%) 176 (64%) This bar chart shows the total population of Rathbones divided into four quartiles. We have proportionally more women in administrative roles and proportionally more men in higher paid management and investment roles. Upper middle (274) Upper (274) 50 100 170 (62%) 150 220 (80%) 200 103 (38%) 54 (20%) 250 4
GAP GAP Rathbones gender pay gap report 2018 Our results Our results Gender Pay Gap reporting 5 April 2017 snapshot date We have also analysed the difference in bonuses received by male employees and female employees. Again, the mean gap compares the average bonus and the median compares the midpoint in the range of bonuses awarded. The bonus pay gap again reflects the greater proportion of men in senior investment and management roles at Rathbones. Bonus pay Bonus pay distribution Mean bonus pay Proportion of relevant employees receiving bonus 89.9% All relevant employees of eligible men receiving a bonus 80.5% Mean Bonus gender pay gap percentage 92.2% Median bonus pay Proportion of relevant employees receiving bonus of eligible women receiving a bonus Bonus eligibility These figures cover everyone employed by Rathbones on 5 April 2017 as stipulated in the guidelines and do not take into account our own bonus policy, which links duration of employment and part-time working arrangements to a pro rated bonus. 84.7% Median Bonus gender pay gap percentage 5
Action What is Rathbones doing to increase female representation? The way Rathbones recruits people has a large part to play in ensuring we lay the foundations for a diverse workforce in the long term. Our recruitment policies have been reviewed to ensure we are treating all candidates fairly. We are also re-training interviewers, to ensure they understand unconscious bias and its impact on representation. Each year our graduate recruitment broadly achieves a 50:50 gender split, and we are taking further measures to ensure women are continually encouraged to apply for roles at Rathbones. The greater challenge is retaining and motivating existing female employees, and supporting and encouraging them throughout their careers. 1 2 Attraction and development We are rolling out unconscious bias training across the firm to help people recognise their own unconscious biases and the impact this has on decision-making, leadership, recruitment and relationships. A culture of inclusion We have made significant improvements to the firm s maternity, paternity and adoption policies to ensure balance between the options of parenting leave for each parent. We have been developing our support for working parents and carers through coaching, training and advice. We also continue to offer the Employee Assistance Programme, which is available free of charge to all employees, offering access to round the clock independent and completely confidential support and advice services. We conduct an equal pay audit annually, and equal pay considerations form a key part of salary decisions in recruitment and during salary reviews. Recognising the importance of this issue, Philip Howell as Chief Executive will take personal responsibility for overseeing gender diversity initiatives. 6
Action 3 4 Future leadership The Rathbone Active Women s Network promotes the role of women as investment managers and clients. We are also exploring external opportunities to show our commitment, such as our recent sponsorship of the inaugural Investment Week Women in Investment Awards. When recruiting experienced employees, we encourage headhunters to identify female investment managers who may wish to join Rathbones. Recruiting managers are required to document their reasoning for rejecting candidates and we will be reviewing this for female candidates specifically on an ongoing basis. We will require further rationale in situations where there are no women on the shortlist. 5 Targets and plans for the future Rathbones is applying to be a signatory to the Women in Finance Charter, issued by HM Treasury. We have been running a series of focus groups to explore wider diversity issues and discuss what more we can do as part of our continued commitment towards improving female representation. The future These are all positive measures, and we will continue to work towards improving our gender balance. We will continue to focus on ensuring we attract and retain our talented women, and ensure we provide the right environment for them to progress to senior positions. We will also work hard to improve the representation of women in senior roles, and create a more diverse and inclusive workplace, building on the progress we have already made. There is no quick fix when it comes to changing Rathbones demographics. Growing female talent within our business will, however, be a key area of focus in addressing the gender pay gap over the long term. 7
Action Declaration As chief executive of Rathbone Brothers Plc, I confirm that the information contained herein is accurate. Philip Howell, Chief Executive 8