uk gender pay gap report 2017 -...

UK Gender Pay Gap Report 2017M&G Limited

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UK Gender Pay Gap Report 2017

Introduction

As long-term investment managers, it’s important that we understand what our society needs from us – how our customers want to save for their futures, and how our long-term investments in areas like homes, energy and infrastructure can help transform people’s lives. And to do this well, our workforce has to reflect our society, in all its diversity.

We know that more diverse teams make better business decisions which will help us achieve good customer outcomes.

In a genuinely diverse and inclusive workplace, all employees need to know they can bring their true self to work, that they are respected and valued for their differences as well as their skills, and that they have an equal opportunity to contribute.

We have made some very significant efforts in a host of areas – some of which you can read about in this report – and have made a lot of progress towards achieving a diverse workforce, particularly at entry level, where among our apprentices and graduates are future generations of business leaders.

However, as you will see in the data on the gender pay gap for our UK employees in this report, we are still some way off achieving gender diversity at every level and in all areas of M&G today. The structural demographic reasons behind this data require serious, long-term, concerted effort to address. It will not happen quickly. But making this kind of effort is non-negotiable: our success as a business depends on our ability to attract, retain and promote diversity of talent, whether in early career, mid-career or approaching board level, and we will not rest until we have achieved this.

I confirm that the information contained in this report is accurate.

Anne RichardsChief Executive, M&G Limited

Gender pay gap reporting

The gender pay gap is a measure of the difference between the average pay and bonus of men and women across an organisation irrespective of role and seniority.

This is different to equal pay, which is the legal requirement to pay the same to men and women who are doing work of equal value.


UK gender pay gap report 2017

Who this data includes

The data presented here is for all our 1,529 UK-based employees. The mix of men and women in our UK workforce is currently:

45%Women

55%Men


Fixed pay including salaries and cash allowances

33.2%The average (mean) hourly rate of fixed pay received by male employees is 33.2 per cent more than the average (mean) hourly rate received by female employees.

32.0%The midpoint (median) of the range of rates of hourly fixed pay received by male employees is 32.0 per cent more than the midpoint (median) of the range of rates of hourly fixed pay received by female employees.

Bonus pay including bonuses and long-term incentives

83.5%The average (mean) value of bonus pay received by male employees is 83.5 per cent more than the average (mean) value of bonus pay received by female employees .

59.4%The midpoint (median) of the range of the values of bonus pay received by male employees is 59.4 per cent more than the midpoint (median) of the range of the values of bonus pay received by female employees.


M&G Limited’s 2017 UK gender pay gap

Males 97%

Females 95%

Proportion of males and females by pay quartileThe charts below show the gender balance of UK employees in each pay band (dividing our UK employees into four equal bands):

97 per cent of male employees and 95 per cent of female employees received a bonus.

Females Males

Lowest Quartile 2

Quartile 3 Highest

61% 51%

23%42%

39%

49%

77%

58%



M&G Limited’s 2017 UK gender pay gap

The reasons for the gender pay gap These pay figures demonstrate the structural demographic challenges in our business and the wider investment management industry as a whole:

• There are more men than women in leadership, investment management, sales and senior operational roles; and

• There are more women than men in administrative and support roles.

The gap in bonus pay is higher than the gap in fixed pay because:

• There are more men than women in those roles with higher incentive opportunities, that is, leadership, fund management and sales roles; and

• Our part-time employees receive bonuses which are adjusted to reflect the hours that they work. However, this is not recognised in the calculation of the gender bonus gap. The majority of part-time staff are women; 19 per cent of women work part-time compared to 1 per cent of men.



How are we closing the gender pay gap?

There is no single or quick solution to the structural gender imbalance in our business, particularly given our low rate of staff turnover. Sustained strategic efforts at all levels are required if we are to achieve meaningful and lasting change.

Our main areas of focus are firstly in encouraging and supporting women in mid-career to progress into senior leadership roles, and secondly, for the longer term, building a strong pipeline of junior female talent in investment and commercial areas which have opportunity for higher incentives.

Mid-career and senior rolesM&G became a member of the “30% Club” in 2015, committing to having women in at least 30 per cent of senior management roles by 2020. At present, 32 per cent of our senior management cohort are women. Additionally, our parent company, Prudential plc, has signed HM Treasury’s Women in Finance Charter, committing that 30 per cent of the group’s 100 most pivotal roles will be held by women by the end of 2021.


We have been taking a number of measures to reach and eventually exceed these targets for senior roles – which will be essential if we are to achieve the diverse decision making our business needs and in the process, improve the gender pay gap. These include:

• Working with diversity focused search firms who go beyond simply providing gender-balanced long and short lists to help us think creatively about how we shape roles to attract senior female talent.

• Trialling enhanced flexible working practices, which allow our people more control over when, where and how they work.

• Giving prominence to senior female role models in our business, and to both male and female role models in senior roles who have flexible working arrangements.

• Providing support for women and men returning after career breaks, including maternity leave, through our Career Returners programme.

• Inclusive behaviour training for everyone.

• Unconscious bias training for all senior managers and recruiting managers, soon to be rolled out to the entire business.

Ritu Vohora, Investment Director and Head of Equities Investment Communications, M&G:

“In my 12 years at M&G I’ve had the opportunity to work in various roles from product development to business management, collaborating with senior stakeholders on strategy and product launches, to portfolio construction and client engagement. In my current role, I have been empowered to create a new role dedicated to providing our clients with insights into the equity markets alongside our products. I’ve had the flexibility to shape a role that I’m incredibly passionate about, whilst representing and raising the profile of the business in the industry through being a spokesperson at events and in the media.”

Véronique Chapplow joined M&G as an Investment Specialist in the Equities team following a career break:

“I had had eight years away from the workplace to look after my four children, who are now aged ten to fifteen. Since joining M&G I have been amazed by how much support I have received: from new colleagues who went out of their way to welcome me, to training opportunities and coaching sessions. This is the first time in my entire career that I have been so well looked after.”




Future talentOur employee turnover is low, particularly in investment roles. But when opportunities do arise we need a deep pool of diverse talent to draw on to ensure the diversity of thought that is crucial to our ability to deliver for our customers.

With that in mind, we have already been working hard for several years at attracting talented young people from a broad range of backgrounds to consider careers in our industry, including women.

These efforts are beginning to pay off, as we now have a strong, gender balanced pipeline of apprentices and recent graduates in place within our business, who are well set to take leadership roles in the future.

While not letting up on our recruitment efforts at entry level, our challenge now is to ensure all our rising talent have access to equal opportunities to develop and grow to their full potential.

Some of the actions we have taken over the last few years to recruit and foster diverse young talent – and which we continue to develop – include:

• Insight events for female sixth formers and university students to share what a career in our industry can offer, featuring female role models from within our business.

• Paid summer internships for university students, to give them the chance to experience investment management from the inside and to demonstrate their strengths in a real-work setting.

• Recruitment from a very broad range of universities, without requiring any specific degree subject.

• Rethinking our recruitment processes to reduce the chance of assessor bias and to give every candidate the opportunity to shine.

• Mentoring and development programmes for junior women.

• Our own diversity affinity networks, including a women’s network.

William Nicoll, Co-Head of Alternative Credit, M&G Fixed Income team:

“The key to fixed interest investing is understanding the real risk associated with any given investment opportunity. This is an art rather than a science, so a diversified team with different perspectives is of paramount importance. An open mind and a flexible approach goes a long way to helping a team to achieve this much-needed diversity of thought.”

Mohima Ahmed, 2017 graduate entry, now in a rotation in M&G’s Technology and Transformation team:

“I have loved every minute of my time at M&G, both as a summer intern and now as a graduate. It’s a really warm and inclusive atmosphere, and I feel I am growing every day in what I can do.”



uk gender pay gap report 2017 -...

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