Gender Pay Gap Report 2018
www.charles-stanley.co.uk Foreword from Kate Griffiths-Lambeth We signalled our commitment to gender equality in June 2017 by signing the Women in Finance Charter, so the introduction of gender pay gap reporting and the potential it has to bring about positive change is welcomed at Charles Stanley. As a longstanding City institution, with a significant quota of senior men (as is typical within our industry), we do have a gender pay gap. Paul Abberley as CEO, the Board and the whole Executive Committee are committed to closing the differential. We must balance this with remaining true to our ethos of having the best person for the job in each position. I am confident that we pay our employees fairly. One way in which we support equality is through fair pay. We work hard to ensure that men and women are paid equally for doing the same job at Charles Stanley and our gender pay gap reflects our workforce profile rather than any failure in equal reward. We have a markedly higher proportion of men than women in senior roles. Kate Griffiths-Lambeth Group HR Director, Charles Stanley We are working hard to address this imbalance. In order to do this we must look at the entire employee journey, from ensuring we have recruitment practices in place that provide access to the most diverse range of candidates, to fostering an inclusive and progressive culture within the company. Crucially, it is also about providing necessary support for career progression, so that all employees, irrespective of gender, can fulfil their potential at Charles Stanley. Addressing the disparity in gender representation at senior levels will take time, but we are committed to doing so, as is indicated by our being a signatory to the Treasury-led Women in Finance Charter. Not only is this central to our values of being caring, fair and progressive, but also it is vital to our future success as a business. Kate Griffiths-Lambeth Gender Pay vs. Equal Pay It is important to note that the gender pay gap (GPG) is NOT the same as equal pay. The GPG is concerned with the difference in the average pay between men and women over a defined period no matter what their job is, whereas equal pay addresses the pay difference between men and women who carry out the same or very similar jobs. 2 Charles Stanley - Gender Pay Gap Report 2018
What is the gender pay gap? The Gender Pay Gap is an equality measure that shows the difference in average earnings between women and men. The gender pay gap does not show differences in pay for comparable jobs; unequal pay for men and women is illegal in the UK. Although the gender pay gap in the UK is at its lowest level ever, in the financial services industry the gap is well above the national average. This report looks at understanding the gap that exists at Charles Stanley, as well as what is being done to address the gap. The Gender Pay Gap Regulations The Gender Pay Gap Regulations came into force on 6 April 2017 and require all UK companies with 250 or more employees to publish the following specific gender pay information each year: Mean and median gender pay gap Mean and median gender bonus gap Proportion of males and females receiving a bonus Proportion of males and females by quartile pay band Detailed rules for calculating the above are set out in the Regulations, but in general terms the mean and median gender pay gap is based on hourly rates of pay as at 5 April 2017, and this date is also used to calculate bonus pay received in the preceding 12 months. Pay quartiles look at the proportion of men and women in four pay bands when we divide our workforce into four equal parts. Why it matters Legislation which protects the interests of all workers in respect to equal pay, irrespective of gender, ethnicity or any other form of diversity, has existed for many years. For Charles Stanley, and other large companies, the advent of gender pay gap reporting means that we now have a clearer picture of our workforce profile and it is evident that we all need to do more to support the career progression of each individual according to their aspirations and capability. It s not simply about doing the right thing (although this is of great importance to us as a firm); research has consistently shown that diverse companies are the most successful. Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians.* In the United Kingdom, greater gender diversity on the senior executive team corresponded to the highest performance uplift in our data set: for every 10 percent increase in gender diversity, EBIT rose by 3.5 percent.* *Source: Diversity Matters report, McKinsey, 2015.
www.charles-stanley.co.uk Understanding our Gender Pay Gap Ordinary Pay Pay Quartiles Median Mean 15.6 Percentage pay gap 31.9% 34.8% 34 66 Bonus 84.4 Upper Upper Middle Median Mean Percentage pay gap 56.1% 74.7% Receiving a Bonus 51 49 36.8 63.2 18.4 16.1 Lower Middle Lower 81.6 83.9 % of Female % of male % did not receive a bonus Declaration I confirm that our data is accurate and has been calculated according to the requirements of The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. Paul Abberley, CEO Charles Stanley & Co. Limited The gender pay gap at Charles Stanley is not where we would like it to be. Our analysis of the data shows that the main driver behind our gap is the high proportion of men vs. women in more senior roles, combined with the majority of part-time and flexible workers at more junior levels being female with resultant reductions in income through pro-rata pay and bonuses. However, among middle level roles the split is broadly even. We have a noticeable difference in bonus amounts, this is due to the fact that many high earning Investment Managers are male and they are on a defined variable reward scheme that has to be reported as a bonus.the reality is that the gender pay gap will continue to exist if we don t take decisive action to address the under-representation of women in more senior roles. Identifying the gender pay gap and the drivers behind it is the first step towards achieving this. 4 Charles Stanley - Gender Pay Gap Report 2018
Addressing the Gap A 3-tiered approach We are working hard to redress the gender imbalance which exists in our company. As an organisation committed to attracting and retaining the very best talent our industry has to offer, we simply cannot accept gender or any other form of diversity being a barrier to success. This means making changes to the way in which we do things. We have made a commitment to our employees that we will be open and transparent in our approach to discussing gender pay and with factors which influence the gap. Addressing the gender pay gap is important to us, both in terms of our values of being a firm which is caring, fair and progressive and in ensuring we have a thriving, diverse business for the future. In order to understand how we can accelerate change, we have considered our entire employee journey, from the way in which we recruit people, to the internal culture, to the support we offer all individuals to progress their career at Charles Stanley. We have devised a three-tiered approach to help achieve our goal of closing the gap. Recruitment Our recruitment practices are designed to be inclusive. We work with a wide variety of specialist recruitment agencies so that we have access to the widest pool of talent. This includes agencies that are female-focused, as well as agencies which specialise in finding opportunities for people returning to work after a break in their career, who may have specific training needs. We have a target across the business of at least 40% of new hires to be female. Career Progression We are developing clearer career pathways across the business to ensure all individuals are able to develop their careers at Charles Stanley. This includes a strong focus on identifying rising talent, enhanced training opportunities designed to boost individual skill sets and mentoring programmes. We will also actively promote the policies we have in place which can support progression, such as flexible working arrangements and shared parental leave. We have a target of a 30% female senior management team. Culture Developing a progressive, inclusive culture which celebrates diversity is a key element of closing the gender pay gap. Our culture needs to be one which fosters the talents of our people, irrespective of gender or anything else. Our dedicated Innovation through Inclusion Group is made up of a variety of individuals at all levels of seniority, who design and implement initiatives specifically to encourage diversity in the workplace.
www.charles-stanley.co.uk A personal pledge from Paul Abberley It is only through being open, transparent, and proactive that change can happen. I want our company to be one in which everyone has the opportunity to succeed; where talent is the sole criteria for success and there are no barriers to everyone fulfilling their full potential. This means understanding the challenges we face and acknowledging where we can do things differently. It is vital we have the framework in place to support all employees and foster an inclusive culture which values and respects diversity in all its forms. We have already made progress but, as our gender pay gap shows, we still have a way to go. Diverse businesses make thriving businesses and we must challenge the status quo to make sure this is true of our company. As CEO, I am proud of our company and I am confident we can make this change happen. Paul Abberley CEO, Charles Stanley Paul Abberley We have signed the government-led Women in Finance Charter initiative to encourage gender balance across financial services firms. Our aim is to have a 30% female senior management team by December 2020. We offer all employees the opportunity to request flexible working patterns, be that working from home or adjusted or part time hours. We currently have over 50 people within the firm who work part time hours to help with their work/life balance. We have exceeded our target of 40% female new hires in the last 12 months. We have made good progress in the past 18 months with identifying rising talent within the firm and supporting career progression. Whilst this is applicable to both genders, we have promoted a significant number of women in the firm to senior positions, to the Executive Committee and to our Boards as Non-executive Directors. 6 Charles Stanley - Gender Pay Gap Report 2018
Charles Stanley & Co. Limited 55 Bishopsgate London EC2N 3AS Tel: 020 7739 8200 Fax: 020 7739 7798 DX 123150 BROADGATE-1 www.charles-stanley.co.uk Charles Stanley & Co. Limited is a wholly owned subsidiary of Charles Stanley Group PLC, is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Charles Stanley & Co. Limited is registered in England No. 1903304. Registered office: 55 Bishopsgate, London, EC2N 3AS. Charles Stanley & Co. Limited