Pay Gap Report 2020 - Ernst & Young
Pay GapReport 2020
Hywel BallEY UK ChairmanJustine CampbellEY UK&I Managing Partner for TalentDiversity and Inclusion has been a key priority for EY formany years. Our D&I strategy to radically accelerate ourprogress was set two years ago and is part of assuring ourfuture growth and long-term sustainability. It has trulycome into its own this year — and, triggered by the eventsof 2020 we took a further step by publicly setting out ourCommitments to Anti-Racism in the UK.EY is committed to inclusiveness and our ambition toachieve a diverse and equitable workplace, where peoplefeel they belong. We know that a diverse and inclusive firmis not only the right thing to do, but that it will result in amore successful firm.I’m proud that we are again leading the way in goingover and above the statutory requirements to report ourgender pay gap — with our Black pay gap included for thefirst time, along with our ethnicity pay gap, and those fordisability and sexual orientation.I am pleased that our gender pay gap has improved by4.7%, achieved by both recruiting and promoting women,particularly at senior levels. Our ethnicity pay gap haswidened by 1.9%, largely due to an increase in the numberof ethnic minority graduates we employed this year. We willcontinue to monitor this and the Black gap closely.We have also increased our ethnic minority talent at eachlevel as well as the representation of both our female andethnic minority partners.By measuring our progress we will be able to continue todrive change that is focused and impactful. By publiclysharing our data, we are holding ourselves to account.We have made headway and are proud to have seen areduction in our whole firm and employee gender paygaps reflecting progress against our D&I strategy througha differential focus on gender. But we acknowledge thatwe need to do more to speed up the pace of change andincrease diversity across all levels.EY people, clients and external stakeholders expect moreinclusive workplaces, more accountability and moretransparency. As part of our Commitments to Anti-Racismthis year, we are going a step further and have publishedour Black pay gap in an effort to overcome barriers thatmight prevent all our people from achieving their fullpotential and making their maximum contribution tothe economy. This is another milestone on our journeyto become a leading inclusive organisation and one ofthe ways where we can do more to achieve parity acrossthe firm.I confirm this report is an accurate statement of our paygaps and meets the statutory requirements.We know we’ve much more to do. We will be unrelenting.We will not rest until we have created a true culture ofequality now, and for future generations at EY.Pay Gap Report 2019 1
GENDER AND ETHNICITY INCLUDING BLACKPAY GAPWhole firmGenderEthnicityPay Gap2020Median15.3%Mean32.4%% Dif. to 2019Pay Gap2020% Dif. to 2019–4.7%Median15.8% 1.9%–3.9%Mean36.7%–0.3%Black and other ethnicities 2020Pay %13.0%–8.0%Mean48.9%41.7%36.6%29.5%–1.4%At the time of calculation, 88.5% of our pay gap employee and partner population had answered the question regarding ethnicity.Partners onlyGenderEthnicityPay Gap2020Median19.4%Mean12.9%% Dif. to 2019 Pay Gap2020% Dif. to 2019 2.9%Median14.1%–2.2%0.0%Mean15.0%–0.3%At the time of calculation, 96.8% of our pay gap partner population had answered the question regarding ethnicity.Employees onlyGenderEthnicityPay Gap2020Median10.4%Mean15.3%% Dif. to 2019Pay Gap2020% Dif. to 2019–3.4%Median10.0% 1.5%–2.9%Mean16.4% 2.4%At the time of calculation, 88.2% of our pay gap employee population had answered the question regarding ethnicity.Equal Pay is different from pay gapIt is important to note that EY monitors pay at all levels ofthe organisation and is firmly committed to equal pay, asset out in the Equality Act (2010). This ensures that a manor woman doing the same or a similar role are paid equallyand is different to the pay gap.What is different about our approachto pay gap publishing this yearThe pay gap shows differences in the average (median andmean) earnings between different groups of people by,for example, gender or race. We know that a pay gap willpersist until there is equal or proportionate gender andethnic minority* representation at every level and job rolein our organisation.This year we have published the pay gaps for all ourethnic minority populations in line with our strategicfocus on both gender and race as part of our D&I strategy.We recognise that the aim of pay gap reporting is tounderstand the make-up of our workforce and identify andovercome the barriers that may prevent our people fromthriving. This is why EY has chosen to voluntarily publishthis year its Black, Chinese, Asian, Mixed ethnicity andother ethnic group pay gaps.* At EY we have committed to refrain from using the BAME category as far as practically possible when we scrutinise the experience of our peoplein the UK Firm. Instead we will use the UK census ethnicity categories, calling out Black and other representation, to seek to truly understand allour employees.2 Pay Gap Report 2020
KEY HEADLINES FOR 2020We remain committed to increasing the representation of women and ethnic minorities at senior levels of the Firm,and to creating a culture where everyone can thrive and succeed. We are continuing to make progress but recognisethat if we are to meet our commitments we have made around race and gender, now is the time to accelerate the paceof change. We are pleased to report that we have seen a reductionin our whole firm and employee gender pay gapsreflecting progress against our D&I strategy through adifferential focus on gender. Increasing our efforts toachieve better representation remains front of mind ineverything we do throughout the employee lifecycle.Two contributing factors to improving our pay gap areour relentless focus and success in both recruiting andpromoting our women, particularly at senior levels(manager and above). We have increased our female partner representationby 2%, shifting the make-up of our partnership to 23%female partners, and our female director representationby 3%, to 37% (the grades attracting the highest level ofrenumeration). We have also improved the balance ofgender representation at junior levels. Our employee ethnicity pay gap, calculated as thedifference between the average earnings received byethnic minority (excluding White minorities) employeescompared to White employees, has widened this year.Driving diversity in the firm, we have attracted moreethnic minority graduates to ensure that we are growingand developing a talent pool for the future. Whilst thishas impacted the pay gap in the short term, it shouldreduce it in the long run. As of April 2020, our ethnicminority talent made up 30% of our overall workforceand is up 3% from the previous year. We have increased our ethnic minority talent at eachlevel, with the highest increase of 5% being in ourmore junior grade pool which now makes up 40% ofthe workforce. Compared to the previous year we haveincreased representation of our ethnic minority partnersby 1%, shifting the make-up of our partnership to 12%. As part of our Commitments to Anti-Racism, announcedin July 2020, we pledged to publish our Black pay gapin order to have more transparency around the disparityin pay of employees within different ethnic groups, toallow us to truly understand the experience of all ouremployees and disrupt some of the legacy processesthat have sustained these gaps. This will ensure we areinclusive for everyone and will enable us to improvethe opportunities and representation of our ethnicminorities where we have the biggest gaps. The disaggregation of our ethnicity pay gap data iscalculated as the difference between the averageearnings received by employees from individualethnicities compared to White employees. Our analysistells us that both the mean and median pay gaps forour Black employees are higher compared to all otherethnicities. This is primarily due to lower representationof Black employees at the most senior levels. Only 29%of our Black colleagues are manager position and abovewhile 71% make up the junior pools, contributing to anethnicity pay gap.Progress on targetsDespite the challenges of 2020 and the global pandemic, the firm is actively ensuring that the differential focus on raceand gender remains a key priority and is using the disruption to accelerate change in this space. We will continue totrack progress at a firmwide and service line level through setting targets and assessing metrics against recruitment,retention and promotions to ensure fairness and equity. We are seeing positive pipelines of future talent, which inconjunction, with our measures to track these through to senior positions, will, we hope, see an acceleration in ourprogress towards our partnership targets of 40% female and 20% ethnic minority, of which 15% will be Black (thisequates to 3% of our Partner population) by July 2025.Pay Gap Report 2020 3
Driving change through tangible actions to close the pay gapWe committed to our D&I strategy two years ago, and we are driving change through tangible actionsunder our three strategic pillars.1. We are focusing on developing a culture ofgreater equality driven by actively inclusivebehaviours, embedded in all business and talentstrategies so that everyone feels they belong.This is underpinned by our engagement strategythat reinforces a culture of belonging throughstorytelling. “Strong when we Belong” EY’sUK-wide campaign, a regular feed of stories andpodcasts celebrating EY people from differentbackgrounds, has been seen by 250,000people across internal and external platforms,helping to open minds and build a culture whereeveryone feels they belong and ensuring thatour people remain connected through times ofgreat uncertainty.2. Truly bring about a shift in the make-up of ourfirm with, in the first instance, a differentialfocus on race and gender. We have a bold publiccommitment to double the proportion of femaleand ethnic minority talent in the UK partnershipto 40% female and 20% ethnic minority, 15% ofwhich will be Black (this equates to 3% of ourPartner population) by July 2025.4 Pay Gap Report 20203. We are equipping our people to be a strong,disruptive voice and talk openly and proudlyabout the commercial necessity of diversity andbelonging with our teams, clients, communitiesand stakeholders. We continue to share insightsand thought leadership with key audiences viamedia and key organisations. We partnered withthe CBI as part of this year’s D&I conferenceand were UK headline sponsor of WorkPridevirtual conference in 2020. We are also afounding partner of CBI’s ‘Change the race ratio’driving action by setting targets for greaterracial and ethnic diversity at our board andsenior leadership levels as well as continuing asprincipal sponsor of the 2020 Parker ReviewReport that looks at ethnic diversity on FTSE250 boards and sponsor of the CranfieldUniversity Female FTSE Board Report 2020.
STATUTORY GENDER PAY GAP (GPG)AND ETHNICITY PAY GAPOur full statutory GPG figures are presented below, with the addition of our voluntary correspondingethnicity pay gap figures. In-line with the statutory legislation, these statistics relate to employeesonly and do not include partners.Gender pay and bonus gapGenderGenderPay Gap2020Median10.4%Mean15.3%% Dif. to 2019Bonus Gap2020% Dif. to .2%Percentage receiving a bonus - 66.8% female and 62.0% maleQuartilesDif. in female since20192020FemaleMaleUpper38.2% 1.0%61.8%Upper middle48.6% 0.1%51.4%Lower middle53.3% 0.2%46.7%Lower49.0%–2.6%51.0%Ethnicity pay and bonus gapEthnicityEthnicityPay Gap2020Median10.0%Mean16.4%% Dif. to 2019Bonus Gap2020% Dif. to 2019 1.5%Median27.5%–5.8% 2.4%Mean30.6% 1.9%Percentage receiving a bonus – 52.2% ethnic minority and 70.1% WhiteQuartilesDif. in all other ethnicgroups combinedsince 20192020All other ethnicgroups combinedUpper23.3% 1.5%76.7%Upper middle39.6% 3.9%60.4%Lower middle42.9% 4.2%57.1%Lower33.9% 4.7%66.1%WhiteBlack and other ethnicity (Whole firm) pay gapsBlack and other ethnicitiesPay %13.0%–8.0%Mean48.9%41.7%36.6%29.5%–1.4%At the time of calculation, 88.5% of our pay gap employee and partner population had answered the question regarding ethnicity.Pay Gap Report 2020 5
BLACK AND OTHER ETHNICITY(WHOLE FIRM) PAY GAPSMore on accelerating our efforts in building an inclusive environment at EYand laser focus on race and gender agendaMaking time for new dialogues and thoughtful actions ismore important than ever to ensure that our actions matchour words both internally and externally, with our clientsand in our communities. Meaningful change takes timeand focus and accelerating our progress on diversity andinclusion is both a priority for the leadership team, andimperative for us to grow and flourish as a business. Our people are at the heart of what we do. This year,more than ever, has demonstrated the importance ofenabling our people to help solve the world’s toughestchallenges, support the creation of long-term value andbring out the best in themselves and others. We haveprioritised the health and safety of EY people, clientsand communities by swiftly implementing guidance fortravel, meetings and events, as well as a safe return toEY offices and client sites. Ongoing EY investments intechnology, combined with a strong existing culture offlexible working, meant we also quickly adapted to a fullyremote work environment for nearly 300,000 EY peopleworldwide. We were also particularly aware of the need to be evenmore intentional about what EY people need to supporttheir wellbeing during the pandemic. From the outset,additional resources and benefits for EY people weredeveloped, based on local needs, including an additional5 days paid special leave for people with caringresponsibilities, and access to financial, mental andphysical health resources. At the same time, we remainfocused on ensuring that EY people could continue tobuild the exceptional experiences they need to thrive, ina very challenging and uncertain environment. Gender diversity of our senior appointments was betterthan ever this year. This is a record year for genderdiversity, with 35% of partners, associate partnersand director promotions, globally and in the UK,being women.6 Pay Gap Report 2020 We announced our Commitments to Anti-Racism inthe UK. In response to the events of 2020 and the tragickilling of George Floyd and others, and the realizationthat we needed to take an unrelenting approach tocreating lasting cultural change, we announced sevennew commitments and re-affirmed our existing ones. We have increased the capacity in the UK of ourFuture Leaders Programme (FLP) from 65 (2019) to100 (2020) with an increased number of allies thatcorresponds to 200. FLP is a leadership developmentand culture change programme, and one of the waysin which we are investing in levelling the playing fieldand creating equal opportunity for all our high potentialsenior managers from ethnic minority backgrounds toprogress to their full potential. We have invested in a number of programmes to educateour people and promote Black talent, these include: ‘Race Fluency and Allyship’ and ‘Inclusion andBelonging’ training modules for all EY people,launching in early 2021. Race Reverse Mentoring Scheme to provide a differentperspective to our leaders in their decision-making. The inaugural EY Race and Ethnicity awards 2020where colleagues across the UK firm were recognisedfor their efforts towards racial equality and building aculture of belonging. Discover EY-Black Heritage in Business insightprogramme for Black students in their first yearof university.
ADDITIONAL PAY GAPSAt EY we believe in promoting transparency and constantly push ourselves to do better, believing in upholding the spiritof legislation and not simply the letter. As such, we have made moves to explore our disability and sexual orientation paygaps, with the recognition that we need to improve the rates of those declaring these demographics.This year we are reporting whole firm figures for both Disability and Sexual Orientation in order to drive moretransparency and measure progress.Disability — whole firmSexual orientation — whole firmDisabilitySexual OrientationPay Gap2020Pay Gap2020Median6.2%Median–1.4%Mean5.6%Mean10.0%At the time of calculation, 61.4% of our pay gap employeepopulation has answered the question regarding theirdisabilityGender identity is a separate question of identity to sexualorientation and so is not included in these calculationsActions on driving awareness on disability— whether visible or invisible include:25 years of Unity, EY’s LGBT network Our Ability EY UK Network helps promote understandingof the lived experience; and prioritise improvementsincluding ease of workplace adjustments and accessiblecommunications. The group raises awareness of diverseabilities through leadership team interventions, ensuringwork on psychological safety and cognitive diversity arefactored into the firm’s D&I approach. This year EY continued to champion and support theLGBT community around the world and advance LGBT inclusion through marking 25 years of Unity, EY’s LGBT network. Through Unity and global advocacy efforts, weaim to serve as an example to EY clients and otherorganisations who are looking to increase their LGBT inclusion efforts and to offer guidance to others. In 2019, EY signed up to the Valuable 500, a globalcampaign calling for 500 of the most influentialbusinesses to promote the business, social andeconomic value of the one billion people living withdisabilities globally. EY has sponsored and co-developed research to showthe impact of advancing LGBT inclusion, includingOpening up the World, Out in the World, Making It RealGlobally, and Out Leadership’s Ally Up: Ally is a Verbresearch, launched in June 2020. Around the world, our local disability inclusion effortsinclude, but are not limited to, our focus on the valueof dyslexia, our Neurodiversity Centers of Excellenceand partnering with disability inclusion organisations torecruit and hire talent with diverse abilities. This research and history of convening gives EY a uniqueopportunity as a founding sponsor in the Partnership forGlobal LGBTI Equality (PGLE) and original signatory ofthe United Nations Standards of Conduct for Business toelevate visibility of the impact of LGBT inclusion. We collaborated with charity Made By Dyslexia to createthe ‘Value of Dyslexia’ report.Pay Gap Report 2020 7
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The pay gap shows differences in the average (median and mean) earnings between different groups of people by, for example, gender or race. We know that a pay gap will Whole firm Gender Pay Gap 2020 % Dif. to 2019 Median 15.3% –4.7% Mean 32.4% –3.9% Ethnicity Pay Gap 2020 % Dif. to 2019 Median 15.8% 1.9% Mean 36.7% –0.3%
3. Statutory Gender Pay Gap Report 2019 In this section is reported the Statutory Gender Pay Gap, the Gender Pay Gap (Excluding Casual Staff), and a review of Bonus Pay. A positive black number, means that there is a pay gap in favour of men, whereas a negative red number means that there is a pay gap in favour of women. 3.1. Statutory Gender .
Gleeds Gender Pay Gap Report 2019 Gleeds figures 2018 PAY GAP This table shows the mean and median pay gap between men and women, based on hourly rates of pay and presented relative to men’s earnings. The median gender pay gap differs from the mean as it shows the mid-point of data, rather than the average. BONUS GAP
by law to publish their gender pay gap each year on their own and on the Government’s website. This is Unite the union’s gender pay gap report for 2019 based on 2018 pay. 2 Gender Pay Gap 4 april 2019 ABOUT THIS REPORT The report was prepared in line with the Equality Act 2010 (Gender Pay Gap
A gender pay gap does not indicate discrimination or an absence of equal pay for equal value work - it reports a gender representation gap. If women hold more of the lower paid jobs in an organisation than men, the gender pay gap is usually wider. Gender pay gap reporting often further highlights important challenges that business
Ramon Reynoso, Ernst & Young Elisabeth Kulinski, Ernst & Young Andrew Soulier, Ernst & Young Emily Hand, Ernst & Young Gavin Fu, Ernst & Young . Mr. Woodbury stated that the Carson location is having a hard time hearing speakers in Las Vegas. Director Dykema said in 701A.240, we are changing the time frame from February to December to .
report, the 2019 overall pay gap data includes the pay gap data for UK subsidiaries of the firm. Statutory 2019 Gender Pay Gap Reporting The Gender Pay Gap aims to show the distribution of men and women across different roles within an organisation and highlight where there may be concentrations of a particular gender at lower or higher
PROGRESS ON THE GENDER PAY GAP: 2019 7 In 2016, we released the first-ever study of the gender pay gap using Glassdoor salary data. In that study, we added to the large body of research confirming the existence of a gender pay gap, but we also used Glassdoor’s unique data to explore the drivers of the pay gap by
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