Gender and ethnic minority pay gaps due to under-representation in senior roles, not pay inequality
Today PwC published its revised pay gap data by gender and ethnicity to include partners. PwC’s updated pay gap now combines the total earnings of employees and partners across the whole firm resulting in a mean gender pay gap of 43.8% and a median gap of 18.7%. The Black Asian and Minority Ethnic (BAME) pay gap for employees and partners is 35.9%, with the median gap, 11.7%. PwC’s mean gender pay gap for partners is 17.1% and the median gap is 20.5% and our mean BAME partner pay gap, is 5.4% and the median gap is 0%.
Under the government's methodology, which came into force in April 2017, PwC’s mean gender pay gap is 13.7% and its mean bonus gap is 37.5%.
Kevin Ellis, chairman and senior partner at PwC, said:
“The increase in our gender and BAME pay gaps when partners are included highlights our need for more women and ethnic minorities in senior positions, including within the partnership. To be clear, we pay our women and men equally for doing the same or equivalent jobs across our business. The issue is one of senior representation rather than pay inequality and it is not good enough. We are continuing to focus on improving this position to meet our gender and ethnicity targets.
“We have had a degree of recent success in promoting female and BAME employees into the partnership, but that expanded cohort of female and BAME partners remains at the junior end of the partnership, such that the partner pay gap will only reduce as they progress through the role levels and their pay increases.
“We recognise the strong public interest in equality and diversity and therefore the greater need for transparency on all matters relating to gender and ethnicity. In the spirit of the government’s regulations, we’ve now included total earnings of partners and staff to give the most rounded picture of our firm’s gender and BAME pay gaps.”
Laura Hinton, chief people officer at PwC, commented:
“There are no quick fixes to eliminate pay gaps, but as a firm we have a clear strategy and action plan to deliver on our targets for gender and ethnicity. This includes: senior level accountability to build a strong and diverse talent pipeline; driving fair allocation of work and opportunities; investment in our returnship programme; focused recruitment activity and creation of additional progression coaches.
“Gender pay gap reporting is an important move to drive greater equality in the workplace. Only dedicated and focused action will move the dial. We’re committed to creating an inclusive workplace and culture where everyone can reach their full potential and we will continue to drive improvement where we know it is needed.”
PwC’s partner pay gap has been calculated based on total distributable profits and the calculations are not based on full-time equivalent pay, but actual pay, which worsens the reported position: 7.4% of our partners work less than standard hours, but the split is 24% of our female partners and 3.6% of our male partners.
Partners were previously not included in the reported figures as ACAS guidelines exclude them on the basis that they are owners of the business and receive a profit share that reflects both the job they do and a return on the equity they have invested in the business. This makes comparisons difficult, but we have included all components of partner income in our updated data to ensure the maximum transparency.
Notes to editors:
PwC first reported its gender pay gap in 2014, four years ahead of the regulation coming into force. It was the first professional services firm to report its data under the government’s guidelines in June 2017 and extend this reporting to ethnicity, being the first professional services firm to do so.
Under the government guidelines PwC’s mean gender pay gap figure is 13.7% and its mean bonus gap is 37.5%.
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