Pay Gap Report 2019 - Clifford Chance

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PAY GAP REPORT 2019AT CLIFFORD CHANCE, WE ARE COMMITTED TO CREATING AN INCLUSIVEENVIRONMENT BASED ON MUTUAL RESPECT WHERE EVERYONE HAS ANEQUAL OPPORTUNITY TO SUCCEED.We see diversity and inclusion as a core value of our firm.It is an issue of fairness and justice. As a firm we arecommitted to delivering these values within our firm, for ourclients and in the wider world.We are also committed to transparency. It is only when weare open and honest about where we are, that we candesign the best targeted and tailored strategies to deliver realchange.At Clifford Chance, we are proud of our history as a firm thatshapes and leads the legal sector. We see our commitmentto transparency as rooted in that tradition. That is why wewere the first law firm to include the total annual earnings ofpartners in our pay gap data; so that we could showourselves and the world the true distance that has to betravelled to deliver equal opportunities for everyone in ourfirm.Last year, we added ethnicity, sexuality and disability data toour reporting, alongside gender, not because we had to butbecause we felt we needed to if we are to truly drive change.We continue to report this way and examine closely thecauses of our pay gaps. Over the past year, we havedesigned and implemented a range of strategic interventionsto address these causes, which we consistently monitor andreview. Some of these interventions are set out in this report.PAY GAP REPORT 2019We think the metrics show that changes are still needed.These require both innovative and meaningful leadership fromthe top. We aim to deliver equality of opportunity and a culturethat is fair, inclusive and empowers individuals.While this is a UK report, we are encouraged to see the effectit has had across our offices worldwide and we are optimisticabout our expanded programme of innovations andinterventions over the coming year. These include introducinga timeframe for our gender target, setting ethnicity targets, aglobal reverse mentoring scheme, new objectives required ofleaders, and a range of exciting global partnerships withclients and civil society to help realise significant change.It is said that it takes time to produce the meaningful changewe seek, but for us this remains unsatisfactory. While we arepleased to see our numbers start to shift in the right direction,we are determined to find accelerators that will break throughthe all-too-gradual pace of change in the sector.LEANA COOPOOSAMYon investment in expertise“In an ideal world, I wouldn’t have a job as an Inclusion,Diversity & Wellbeing Specialist. We wouldn’t need arole like mine to ensure that we have a diverse andinclusive working place where people understandeach other.I’m part of a global inclusion team that has grown fromone to four people over the past year, and I’m inspiredby what we’ve achieved in a relatively short period oftime – not just in the firm, but in the ecosystem in whichwe exist, together with our clients, ourcommunity and our families.It begins with our people. As a firm,we need our people to believe in usand what we say, and we remainfocused on helping everyone tofeel part of something worthwhileand supported to betheir best.Culture is the hardest thingto challenge. But onceyou’re able to, the resultsare dramatic. I want to seeClifford Chance be at theforefront of changing thelegal sector for the better,and I’m excited to be part ofthat change.”CLIFFORD CHANCE 1

PAY GAP REPORTINGStatutory 2019 Gender Pay Gap ReportingThe 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 higherpay levels. The Gender Pay Gap legislation is not aimed at showing equal pay for the same role; this has already been a legal requirement since the Equal Pay Act 1970. The firm examines that questionregularly and we are confident that we pay women and men equally for the same roles. Our 2019 data shows that, based on hourly rates of pay, women’s pay is 20.0% lower (mean gap) than that of men.The median gap is 37.0%. As a percentage, overall female pay and bonus is lower than male pay and bonus as follows:Pay and bonus gaps (% less than men)Proportion of employees receiving a bonusMeanMedianHourly Pay Gap20.0%37.0%Bonus Gap37.9%44.3%Proportion of men and women in each pay quartile bandMenWomen57.8%57.8%Upper quartile51.6%48.4%Upper middle quartile51.8%48.2%Lower middle quartile42.2%42.2%receiving a bonusnot receiving a bonus40.0%60.0%Lower quartile19.2%80.8%WomenMenFor more details on the definitions used in this report and the %change since our 2018 Report, please refer to Appendix 1.Our 2019 Overall Gender Pay Gap DataWe believe that the gender pay gap is an important issue for our entire firm. The law does not permit us to include our partners in the statutory calculations. The legislation only allows inclusion of employees;our partners are not employees. However, in order to have a complete understanding of the issue and to help our efforts to tackle gender imbalance, we feel it is important to show the gender pay gap for thewhole of our UK firm including all partners and employees. We have therefore continued to include our partners in our overall reported figures in order to offer a more transparent view of the firm. In thisreport, the 2019 overall pay gap data includes the pay gap data for UK subsidiaries of the firm.Overall Pay GapPay GapAssociate Pay GapMeanMedian65.7%41.8%Partner Pay GapPay GapHourly Pay GapMeanMedian4.8%3.4%Business Professionals Pay GapMeanMedian27.5%40.6%Hourly Pay GapMeanMedian25.8%35.2%Our Overall Pay Gap remains significantly impacted bytwo main factors: The level of remuneration that the partners receive, and theproportion of women in the UK Partnership (24.3% of the totalUK partners are women). The high proportion of women in our secretarial roles whomake up a large part of our lower quartile population.Our partner pay is a share of the firm’s profits, much of which is not paid monthly. We think the most honest and informative way to show the figures is to look at total annual FTE pay for UK-basedpartners and employees (including FTE bonus) rather than looking only at a single month snapshot (which would not include significant amounts of our partner pay).PAY GAP REPORT 2019CLIFFORD CHANCE 2

CINDY BUTLER-HILLSMATTHEW NEWICKDANIELLE DOUGLAS“I began my career at Clifford Chance as a LegalSupport Secretary and am now working towards myCIPD (Level 5) qualification as an HR Advisor.“As a leading law firm, I believe we have a moralobligation to take the lead on important social issues.That is why I supported the idea of publishing ourpartner gender pay gap data in our 2017 report, eventhough it wasn't mandatory and the data was notattractive. It is why I'm very proud of the groundbreaking work that the firm has done in courts aroundthe world to progress LGBT rights. It's also why weare tracking the gender balance in our use ofbarristers and adopting a ‘diverse slate’ policy whenrecommending barristers to clients (on a 'comply orexplain' basis).“Wanting equality should be important to everybody.Previously under the BAME (Black, Asian and MinorityEthnic) network, this was always our mission, but somepeople found it difficult to identify with the group. Byrebranding to ‘REACH’ – ‘Race Equality andCelebrating Heritage’ – we are defined by a purposethat everyone can understand.on career advancementDuring this time, I’ve had the opportunity to explore newpaths through secondments in areas like Events andadditional responsibility, such as managing our presenceat Davos. It was covering the role of admin assistant tothe Senior HR Manager in my department that inspiredme to gain external accreditations in HR through ourapprenticeship scheme.In recent years, I’ve seen a noticeable increase in thedifferent ways Clifford Chance is helping morepeople to progress this way. Structured appraisalshelp us focus on progression and how we mightexpand our skills. A further benefit is that, byencouraging people to try new roles, wecan help to break down barriers thatcan exist between the secretarial,legal and business professionalcommunities and create a moreinclusive office environment.I am hugely appreciative of howthe firm has helped me toadvance my career. I workmore globally than everbefore, every week I speakto someone new and the factthat I am still learning everyday keeps me motivated andvery positive about the future.”PAY GAP REPORT 2019on our role in societyQuite apart from social leadership, there is a strongpool of diverse talent at the bar, and we owe it to ourclients to help them find it.For me, inclusion and diversity arenot just about doing the right thingbut about making our businessbetter. The competition fortalent is brutal – we need tofind that talent whereverit resides. Clients expect tosee diversity in our teams.Diverse perspectivesgive better outputs forclients, reducing the riskof 'groupthink’. And ourpeople cannot perform totheir best if they feel likeoutsiders.”on the launch of ‘REACH’Through celebrating our differences, we want todiffuse any fear associated with accepting diversityand help people to unlock perspective and differentschools of thought that they can apply to differentaspects of their lives.Consultation to management is a big part of this andas co-chair of REACH, I’m helping less diverse partsof the firm, such as our partnership, to thinkdifferently about how the firmcan more accurately reflect thediversity of its employees.It’s encouraging to see thisconsultation welcomed and manypeople wanting to join thenetwork, and I’m looking forwardto seeing this enthusiasmconverted into actions by all.If we successfully learn how tocelebrate our cultural diversity –whether that’s being British orJapanese or Ghanaian – andcreate a truly inclusive environment,who wouldn’t want to work here?”CLIFFORD CHANCE 3

PAY GAP REPORTINGOverall gender pay gapUsing ethnicity, sexuality and disability pay gap data to drive changeWe believe that it is important to show pay gap data for the whole of our UK firm including partnersand employees. The data presented here for our overall ethnicity, sexuality and disability pay gapstherefore includes data from all partners and employees. The overall pay gaps for ethnicity, sexualityand disability are impacted by the relatively small populations in each of these categories, which canhave a disproportionate and significant impact on our pay gap figures. The data we have reported isanother indication that our partners do not reflect the diversity we aim to achieve. Diversity in ethnicity,sexuality and disability will remain a key area of focus for us.Actions across all areas We continue to develop new reverse mentoring relationships for our partners and other seniorleaders, and now have approximately 75 active pairings in the UK. We aim to further expand ourreverse mentoring scheme in the coming year.Pay Gap We have widened the membership of our Inclusion Committee, which has recommended a numberof actioned changes that aim to raise awareness of the issues, gather further information, andeliminate unconscious bias in appraisals, salary/bonus discussions and work allocation.MeanMedian65.7%41.8%Overall ethnicity pay gapPay GapPay GapMeanMedian27.5%3.6%Overall disability pay gapMeanMedian51.6%0.0%Pay GapMeanMedian27.0%2.7%Actions relating to gender parity include: Introducing a timeframe to achieve 30% women in the UK partnership by 2025. Making progress towards creating a more balanced secretarial population, developing the role intoTeam or Practice Assistant, eliminating gendered language in job descriptions and broadening ourapprenticeship qualification to include Business Administration Level 3. Our enhanced shared parental leave benefit led to an average increase of five weeks in the lengthof time taken, enabling more people to take paid leave to be with their family. We introduced diversity champions to challenge unconscious bias in pay/reward meetings. We regularly present diversity analytics to senior management and the partnership to drive targetedinterventions.Overall sexuality pay gapActions relating to ethnicity include: Introducing a target of 15% of new UK partners (averaged over the next five years) being fromethnic minority backgrounds by 2025. We are also looking to introduce ethnicity targets for oursenior lawyers and business professionals. Presenting data to all of our London partners highlighting differences in the career experiences ofethnic minority colleagues (e.g. shorter career tenure) and asking each London practice area todevelop a plan to address them. Our group of Inclusion Advocates has grown to a community of 19 Advocates who can offer supportto anybody in the firm on diversity-related matters. Expanding our long-term partnership with diversity recruitment group Rare to encompass wideraspects of recruitment, including lateral as well as graduate hires. While we do not see affinity groups as a solution to our pay gap, they can play an important role asconsultative bodies. We continue to encourage and support our affinity groups for gender parity(Accelerate ), LGBT (Arcus), ethnicity (REACH) and disability (Disability Action Group).Members of each network are brought into senior management discussions where appropriate.Actions relating to sexuality include: We partnered with the International Bar Association to conduct new research into bullying andharassment. We are now in the process of running a global series of seminars to raise awarenessof the findings and tackle this issue in our sector. We continue to encourage our Career Development Mentors, who play an important role in everyassociate’s career progression. Running a number of Lunch & Learn sessions for 40-60 people at a time covering topics such as‘Bi Identities', 'LGBT Inclusive Language' and 'Life As A Trans Man'. The aim of these is toempower, educate and raise awareness internally.Public recognition Hosting our ACCEPT conference, an all day and evening graduate recruitment event for LGBT students and graduates interested in a legal career with Clifford Chance. We were ranked 19th in the Stonewall Top 100 Employers List for 2020 Enhancing visibility of our LGBT network Arcus, through our global ‘Millions of Moments of Pride’campaign and exhibiting Pride Art across multiple offices.We are delighted with public recognition of our efforts. For example: Senior Associate Eraldo D’Atri was named in 2019’s OUTstanding LGBT Role Models list Partner Chinwe Odimba named among 2019’s EMpower 100 Ethnic Minority ExecutivesActions relating to disability include: Partner David Harkness was named on HERoes Advocate Role Model list 2019 Completing an external accessibility audit, following which we are implementing a number ofrecommendations, such as upgrading the induction loops, improving illumination through the useof LED and introducing lower level storage and water taps on some floors. Holding regular disability forums to encourage openness and understand key issues. Running a Disability Open Day for schools, raising awareness of disability issues in youngerstudents. REACH co-chair Roy Appiah shortlisted as a ‘Professional Services Rising Star' finalist at the2019 Black British Business Awards. Accelerate co-chair Alice Jefferis and vice-chair Hermione Allen shortlisted for charity Spark21’s ‘Inspirational Women in Law’ awards 2019.PAY GAP REPORT 2019CLIFFORD CHANCE 4

PATRICK GLYDONEMMA MATEBALAVUWILL WINTERTON“Many of us may have the inclination to take positiveaction on issues relating to diversity and inclusion,but perhaps not the right information or language totake that forward. This is where reverse mentoring isso impactful: it provides a safe space to hear about acolleague’s experience within the firm, enabling bothparticipants to appreciate and support each other'sdifferent challenges. It establishes mutual trust andhas given me the confidence to act in an informedway, driven by a desire to use my influence to bringabout change.“As a partner and co-head of our Global FinancialMarkets practice in London, I hope that I can have apositive influence as a leader in the business. To mymind, each of us needs to play a part in changing thedynamic rather than expecting that others will changethings if we wait long enough.“Reflecting our commitment to supporting parentalleave, the firm has a gender-neutral parental leavepolicy for partners.on reverse mentoringFor the last two years, I have been mentored onethnicity by two fantastic women from different partsof our business, with different experiences andheritage. I have learnt a great deal and they haveenhanced my ability to lead the finance function.As a global firm, we have to ensurewe're thinking about colleaguesin many different roles, rightacross the world. We all wantto be judged on merit and seeour efforts recognised.I'm proud of being part of ateam that not onlyembraces diversity, butstrives to instil it within itsevery-day consciousness.This starts withunderstanding each otherand I am grateful to both ofmy mentors for the time theyhave invested in me.”PAY GAP REPORT 2019on being a visible role modelEveryone has to be a bit special to succeed in thisfirm, but I want to eliminate the myth that womenhave to be better than men to make it. We will onlyachieve gender parity when women do not faceadditional hurdles or question marks on their abilities.I’ve had a lot of people mentor me throughout mycareer – male and female partners – and I am luckythat they still do. I try to support others in the sameway. My main mantra is: be brave. Stepoutside your comfort zone. Ask whatis the worst thing that could happen,which is usually not as bad as youfirst fear, and put your hand up toparticipate.After 20 years at the firm, Icontinue to be impressed andhumbled by the spirit ofcollaboration we share.Colleagues genuinely wantyou to succeed and will help youto do so. My gratitude for thosewho have supported meinspires me to do as much asI can for future generationsat Clifford Chance.”on shared parental leaveI was fully supported by both colleagues and clientsin my decision to take parental leave. Clifford Chanceencourages everyone, irrespective of their role at thefirm, to feel comfortable taking advantage of ourparental leave policy if that is what is right for theirfamily, free of expectation or judgement.From a personal perspective, taking time to bewith my son has given me a confidence andease as a father which I may not havedeveloped without us spending an extendedperiod together, uninterrupted by work.The firm’s shared parental leavepolicy is a true example ofinclusion.Benefiting mothers, fathers,LGBT families and beyond,it supports many differentgroups in many differentways, but all positive.”CLIFFORD CHANCE 5

SUMMARYPay Gap reporting reminds us that we must increase and maintain momentum in relation to diversity andinclusion. Organisations which are best able to cater for a global and diverse client base and workforce will bethose that thrive.We are committed to following through on our plan of targeted, recommended actions to address these issues.DeclarationOur methodology for the statutory Gender Pay Gap reporting has been reviewedby a third party. We confirm that the data reported is accurate.Michael BatesRegional Managing Partner, United KingdomLaura KingGlobal Head of People and Talent Clifford Chance 2020Clifford Chance LLP is a limited liability partnership registered in England & Wales under number OC323571.Registered office: 10 Upper Bank Street, London E14 5JJ.Tel: 44 20 7006 1000PAY GAP REPORT 2019CLIFFORD CHANCE 6

How to read this dataAPPENDIX 1MeanMean figures represent an average, i.e. the compensation of the individuals included inthe data, divided by the number of individuals.DETAILED COMPARISON TO STATUTORYGENDER PAY GAP REPORTING IN 2

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

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