Euroclear UK gender pay gap report

Euroclear publishes information on its gender pay gap for 2020, in line with the regulation for gender pay gap reporting for UK companies.

Our gender pay gap in the UK

This report shows information for our legal entities in the UK: Euroclear UK & Ireland Limited and Euroclear SA/NV London Branch in 2020.

1. Gender pay and bonus gaps

Data based on hourly pay rates (salaries) and bonus payments paid to men and women in 2020.

Gender pay and bonus gaps

2. Proportion of Euroclear employees receiving a bonus


 



3. Proportion of Euroclear employees by pay quartiles


 

Proportion of Euroclear employees by pay quartiles



Equal pay for equivalent jobs

Euroclear's remuneration philosophy is based on the principle of equal pay for equivalent jobs. We have a series of controls to ensure that performance ratings, bonus and salary decisions are fairly and consistently applied during the annual compensation review process.

The data below shows that within specified functional levels (which represent seniority) men and women have a high degree of parity in salaries.

The index below is calculated based on the ratio of salary and remuneration data women/men. An index of 1 means there is parity between men and women . If the index> 1 then the average salary for women is greater than the average salary for men and vice versa for an index < 1.

Note: for levels 1 and 8, the sample size is small and not sufficiently representative to be able to draw reliable conclusions.

 

Index - average salary
Index - average remuneration

 

 

The gender pay gap at Euroclear in the UK

Monitoring our gender pay gap provides us with the data that we need to inform our Diversity and Inclusion strategies and drive action aimed at continuing to improve the representation of women and other underrepresented groups in our organisation.

Differences in our Data

This year, as a result of changes in our remuneration timetable, a proportion of our 2019 performance bonuses, along with 2020 salary increases were paid in May 2020 and therefore fell outside the statutory reporting reference period. For the purposes of this report we have presented the data in accordance with the government guidelines.

This approach did have some limitations when interpreting our gender pay gap and when drawing comparisons with our 2020 submission To address this, we developed a set of ‘adjusted’ data, which includes 100% of bonus payments made in respect of the 2019 performance year and is based on 2020 salary data.

As an example of this issue, our statutory data indicates that 17.1% of men and 7.1% of women did not receive a bonus payment, whereas the adjusted data indicates that 3.9% of men and 2.7% of women did not receive a bonus. In fact, a greater proportion of women received a bonus than in the prior year.

Statutory and Adjusted Gender pay gap data

Our statutory data shows a slight narrowing in the mean pay and bonus gaps and in our median bonus gap. There is a slight widening of the median pay gap.

Our adjusted data, which gives a more accurate picture, and a better year on year comparison, shows that while the gender pay gap has not changed, the mean and median bonus gap has improved since last year. The median bonus gap for 2020 is actually the lowest that we have reported since commencing statutory reporting in 2018. This is good to see but we acknowledge that there remains a gap and will take care not to regard this improvement too positively.

Gender Pay Gap Drivers

We know that our gender pay gap continues to be driven by the composition of our workforce. We continue to have a higher proportion of men working in senior roles in the UK and also a high proportion of men working in IT functions, which make up 39% of our UK workforce and generally enjoy higher remuneration. Notably, 71% of IT roles are occupied by men.

In addition, our pay and bonus gaps are impacted by the fact that significantly more of our part time employees are women and also that more men work shifts and overtime which provides them with an opportunity to earn additional remuneration. This is indicative of wider societal norms where women continue to undertake the lion share of unpaid caring responsibilities for children and other dependents.

Equal Pay for Equal Work

It is important to note that our remuneration philosophy is based on the principle of equal pay for equivalent jobs. We have a series of controls ensuring that performance ratings, bonus and salary decisions are fairly and consistently applied during the annual compensation review process.

Making a Change

We recognise that delivering the significant improvement that we seek in our gender pay and bonus gap requires a long term commitment to change.

Whilst it is important that we maintain our focus on gender, we have the ambition to create a truly inclusive culture where everyone feels like they belong and can meet their potential and to understand and address under representation and pay gaps wherever they exist in our organisation. So, whilst our efforts to improve gender diversity and reduce our gender pay gap will continue we have broadened the focus of all our D&I activities to encompass different dimensions of diversity.  

As has been the case in many organisations, in the light of the shocking and tragic murder of George Floyd and the Black Lives Matter movement, 2020 has been a turning point in our focus on D&I.

Both the local and Group Boards along with our senior leadership and our Group and UK Diversity Councils are pressing for more action to be taken to improve the representation of women and other under-represented groups in senior roles and for an acceleration of the implementation of D&I programmes across the organisation.

Key to making progress is setting measurable targets and a range of targets on Gender have just been approved for roll out across the organisation. We are working on broadening these out to include ethnicity and other dimensions of diversity. 

Central to our D&I approach is the importance of working with our people to co-create programmes that create a shared understanding of what D&I means to us and how it fits with our broader business and people strategy. We are working on programmes that inform and educate on this important topic.

We have facilitated two, group wide, open conversations on the topic of ethic and cultural diversity where the lack of representation of women and people of colour in leadership roles were discussed. These conversations and the further work that they inspired is informing our thinking on the intersectionality of race and gender. In response we have recently set up two ‘Communities’ at Group level, one to focus on taking action to improve Ethnicity and Cultural diversity and inclusion and the other focussing on physical ability.

UK Diversity and Inclusion Council

We are also very pleased to have established our local, UK Diversity Council. Working closely with senior management, the Council is responsible for the development and delivery of a range of initiatives aimed at raising awareness about D&I, embedding diversity and inclusion in all our employee life cycle processes and addressing the impact of bias on the decisions made in recruitment, performance reviews, succession planning and promotions. The Council has already implemented a new approach to family friendly policies, significantly improving the benefits available for all parents.

In the UK we have continued to promote flexible working, creating opportunities for job share arrangements and part time working to support all genders to balance work and home life. We continue to press our recruitment partners to support us in attracting a more diverse range of talent and we are investigating new ways to reach candidates who may not ordinarily apply for roles in a Financial Services company in the City. In addition, we are working with colleagues at Group to implement a programme to provide meaningful, tailored support to employees with a disability or chronic illness.