Schroders publishes its fifth consecutive Gender Pay Gap Report

Schroders has published its fifth consecutive Gender Pay Gap Report for 2020, and confirmed that we reached our latest Women in Finance Charter target of 33% female representation in senior management positions.

We believe that diversity is integral to the success of organisation. Schroders’ aim is to be the employer of choice and this means attracting and retaining high-quality, talent, irrespective of gender, race, ethnicity, sexuality or disability. Addressing diversity and inclusion within our organisation therefore, remains paramount.

In new figures published today, Schroders disclosed that the gender pay gap for the median hourly fixed pay across the businesses globally, narrowed by 6 percentage points in 2020.[1]

Our analysis of comparable roles continues to show that we reward men and women fairly for similar work. The pay gap is predominantly the result of a role gap driven by lack of women in senior management and other higher-paid roles, particularly in the investment side of the business.

This is an issue that continues to be prevalent across the financial services sector, and addressing it within our organisation remains a priority. Since being one of the first FTSE 100 companies to voluntarily disclose its global gender pay data in 2017, we continue to show year-on-year progress at both the global and UK employing entity level.  

In 2015 we had 25% female representation in senior management, and 7% female representation amongst our Group Management Committee (GMC) members. Since then, we have increased these figures to 33% and 29%, respectively.

However, more needs to be done and we will continue to push for progress in 2021.

Our approach to tackling the gender pay gap

Our commitment to creating a truly inclusive culture is at the centre of our people strategy, and is led by our Group Chief Executive, along with executive sponsorship from our GMC members.

At Schroders individuals’ pay reflects their role, responsibilities, behaviours and contribution. Gender, age, race, sexual orientation, disability, religion, socio-economic background or other characteristics are irrelevant when it comes to pay determination; we celebrate and value talented individuals regardless of their characteristics.

During the 2020 year-end compensation review, in addition to the usual line-manager validation of proposed compensation through a diversity lens, we undertook an additional independent top-down assessment of proposed compensation outcomes (bonus, salary and total compensation).

The purpose of this was to assess and explore the appropriateness of outcomes from a diversity perspective. This acted as a second line of defence against the risk of any unconscious bias, over and above the consistency checks HR routinely performs in conjunction with individual line managers.

In 2020 and looking forward, our focus is on increasing female representation in the business, particularly in senior management and higher paid roles. We have now set a new target of 35% female representation in senior management by the end of 2023.

To do this we have taken some measurable and scalable steps to address female representation across the firm. We believe that data transparency is a critical part of this process.

Throughout 2020 we have continued to encourage our people to complete diversity profiles. The data captured will significant enhance our ability to accurately report across all measures of diversity, including ethnicity, race and disability. Once we have diversity profile data completed for over 80% of our people, we intend to publish pay gap reports for other lenses of diversity, including ethnicity and race.

We recognise that there is a backlog of long-standing inequalities that require proactive and urgent action within our organisation and the wider industry. As we aspire to provide greater opportunities for women to build a rewarding career at Schroders, we remain cognisant that we also have work to do in addressing diversity on a broader scale in order to achieve our goal of creating a diverse and inclusive workplace that empowers people to achieve their full potential.

In line with this, Schroders is committed to reporting and benchmarking our progress externally. In 2021, Schroders was included in the Bloomberg Gender Equality Index (GEI) for the [second] time. We achieved an overall GEI score of 73%, above the averages for both the financial services sector and for the UK, where the average scores were 68% and 69% respectively.

The full Gender Pay Gap Report 2020, can be downloaded here. To find out more about Inclusion and Diversity at Schroders please follow this link: https://www.schroders.com/en/working-here/inclusion-and-diversity/

 

[1] Our global figures for mean and median hourly fixed pay rates are based on annual rates of pay and working hours at the end of 2020. The mean and median bonus pay are based on the annual bonuses awarded for 2020 plus the expected value from other deferred remuneration awarded in 2020.