Financial reward is part of the overall deal for our people and within that context supports recruitment and retention of all of our diverse talent groups. Investment in reward has to be competitive, fair and sustainable for the business and decisions in investment each year are made within the context of past and predicted business performance. We believe being transparent about pay is an important way to build trust within our business, so below you’ll find some information on our approach to reward for our people, partners and Management Board.
To make sure our approach is fair we underpin the reward practices for our people with a number of policies and principles:
Transparent about opportunities and decision making
We are open and transparent in how we make reward and promotion decisions, including year end reward briefings and in individual conversations.
A Fair Deal
We are a Real Living Wage Employer across the UK, paying the London or Regional Living Wage rate.
We are committed to equal opportunities for all, including a commitment to Equal Pay. We are explicit that pay decisions must not directly or indirectly take into account an individual’s gender, age, ethnicity, religion, sexual orientation, marital status, pregnancy, parental/ paternity/maternity leave, or disability. Our five point action plan to promote diversity and inclusion provides the broader focus for inclusion across the firm. In addition to monitoring equal pay and reporting on our pay gaps, we measure our progress against this plan with our monthly Talent and Inclusion council.
Our comprehensive benefits package, including both our Choices scheme and wider benefits, is designed to cover all the essentials and much more and to give choice and allow planning for the unexpected. The package grows with an individual's career, but our core and firmwide benefits offer a comprehensive package of benefits from day one of joining the firm. This includes support for individuals, family members and planning for the unexpected.
Alignment to market, business and individual performance
Our benchmarking and reward offering reflects the diverse roles and skills of our people as well as the different markets we operate in. We carry out annual reward benchmarking to monitor our pay, bonus and total reward proposition.
We reward for role, skills and market via base pay. All our employees have the opportunity to progress and progression is reflected in both in-grade pay progression and promotion opportunities and reflects both business need and individual performance / capabilities. This aligns to our annual review of pay and progression, including promotion and our annual bonus awards in July.
We reward past business and individual performance through our annual bonus plan. The bonus pool will increase or decrease in any individual year to reflect the change in profitability for that year.
Individual performance and contribution is assessed against goals (the ‘what’) and the PwC professional and values (the ‘how’).
As part of our commitment to transparency we continue to publish details of our executive pay in our Annual Review. To supplement these key metrics and as part of communicating our overall approach to executive pay we have provided additional context below. This includes how remuneration is determined for members of the Management Board and our Chairman’s pay ratio.
Like all partners, members of the Management Board are remunerated solely out of the profits of PwC UK and are personally responsible for funding their own pensions and other benefits. The Talent & Remuneration Committee (a committee of the Supervisory Board) attended by an Independent Non-Executive from the Public Interest Body, oversees the executive pay process and is responsible for setting the Chairman’s remuneration. The Talent & Remuneration Committee considers a number of key drivers for each member of the board including the breadth of responsibilities, achievement of strategic goals, role modelling of our behaviours and culture, risk and quality outcomes, client feedback, performance against business metrics and contribution to innovation and sustainability.
Details of the Chairman’s and Management Board’s distributable profit shares are below:
* There were 13 members serving on the Management Board in FY21 and FY20 (12 in FY19).
The ratio between the Chairman’s pay and the median employee is 82:1 in FY21 (63:1 FY20). This is shown below together with the pay quartiles. The median and quartile figures have been determined based on the population used to calculate our gender pay gap including partners.
25th percentile pay ratio
50th percentile pay ratio
75th percentile pay ratio