Gender Pay Gap Report 2017 and Women in Finance Charter
At LV=, we see ourselves very much as a modern financial services business where everything we do revolves around our customers, members and employees. We believe that in order to achieve this we need to create a truly diverse and inclusive working environment.
This year, for the first time, UK employers with over 250 employees“[1]” must report on their gender pay gap which is a measure of the difference between males’ and females’ average earnings across an organisation. A positive percentage figure shows that males received higher pay or bonus, on average, than females. This is a move we welcome because at LV= we want talented people to have equal opportunities to grow their careers and we believe that gender balance is vital to our success.
Natalie Rogers (HR Director) says: "The gender pay gap is a measure of the difference between males’ and females’ average earnings. This is not the same as equal pay which broadly means that males and females in the same employment performing equal work must receive equal pay. We are confident that we provide equal pay at LV=."
At 28%, our mean gender pay gap is lower than the indicative average for the financial services industry (34%)“[2]”, but it’s still higher than the UK average for all industries (18%) as reported by the Office for National Statistics in December 2016. Our median gap stands at 24%.
We share the ambition of the government to see gender balance at all levels across financial services firms, and as a diverse and inclusive employer it’s imperative we take steps to tackle our gender pay gap. We understand why it exists, recognise there is work to be done and are focussed on the steps we need to take to close the gap.
Table. 1: LV= Gender Pay and Bonus Gap Difference between men and women
| Median** | Mean* | |
|---|---|---|
| Pay Gap | 24% | 28% |
| Bonus Pay Gap*** | 37% | 53% |
| Median** | Mean* | |
|---|---|---|
| Pay Gap | 24% | 28% |
| Bonus Pay Gap*** | 37% | 53% |
Table. 2: Proportion of Males and Females in each pay quartile
| Quartile | Female | Male |
|---|---|---|
| Upper | 33% | 67% |
| Upper Middle | 49% | 51% |
| Lower Middle | 62% | 38% |
| Lower | 61% | 39% |
| Quartile | Female | Male |
|---|---|---|
| Upper | 33% | 67% |
| Upper Middle | 49% | 51% |
| Lower Middle | 62% | 38% |
| Lower | 61% | 39% |
Proportion of males and females receiving a bonus*** payment
The overall gender pay gap is calculated using hourly rates of pay as of April 2017. The gender bonus pay gap reports on the bonuses paid to males and females at LV= in the year up to 5 April 2017. Our data shows that there is only a 0.3% difference between men and women being rewarded with a bonus.
Read more about Gender Pay Gap Reporting.
We’re confident that our gender pay gap is not an equal pay issue. There is often a misconception that the gender pay gap is the same as (un)equal pay. Broadly speaking, equal pay means that males and females in the same employment performing equal work must receive equal pay, although this is a complex issue. At LV= we do ensure equal pay. Following a deeper analysis of our gender pay gap, we know that our gap is driven by the structure of our workforce. At present, we have a lower representation of women in senior leadership roles, as evidenced in table2.
“[1]” The only legal entity that employs 250 or more employees in the LV= group is Liverpool Victoria Friendly Society Limited, which is referred to as “LV=” throughout this document.
“[2]” PWC Women in Work Index, Closing the Gender Pay Gap (p4)
How LV= is tackling its gender pay gap
We believe fostering a diverse and inclusive culture is key to the successful delivery of LV=’s future strategy. Whilst we recognise that we need to take specific action to tackle our gender pay gap by focussing our efforts on increasing the female population at senior levels within LV=, this is only one part of the equation. Taking a broader view of diversity and inclusion, we recognise a need both to continue supporting all areas of the existing Diversity & Inclusion programme (disability, multi-cultural, sexual orientation and gender) and focus on further fostering an inclusive culture in order to bring about real change.Find out more about diversity and inclusion at LV=.
What's Next?
We’re already aware of the gender pay gap and we continue to take action to improve our gender balance at senior levels, these steps include:
step 1
Women in Finance Charter (WIFC)
On 11 July 2016, we joined 72 other firms across the financial services sector to sign the WIFC, demonstrating our support for the diversity agenda across financial services.
Our Commitment:
As a charter signatory we pledge to continue to support gender diversity, this includes our executive team and Board-endorsed commitment to increase the proportion of women in senior positions.
To meet our WIFC commitments:
- We've committed to achieving 30% female representation on our Board of Directors.
- We’ve committed to achieving 33%, or above, female representation on our executive committee and its direct reports (excluding personal assistants) by 2019.
- We’ve committed to achieving 40%, or above, female representation at senior levels within LV= by 2020.
- We will annually publish our progress against our targets.
These targets are embedded in our executive teams’ performance plans and performance against these aspirational targets will be directly linked to performance-related pay.
LV= Targets and Statistics
| Level | Gender | 2017* Starting Point | 2018** Starting Point | Future State |
|---|---|---|---|---|
| Executive Team and Direct Reports | Female Male |
26.2% 73.7% |
30.2% 69.8% |
33% (2019) 67% (2019) |
| Senior Management*** | Female Male |
36.4% 63.6% |
36% 64% |
40% (2020) 60% (2020) |
| All Employees | Female Male |
53.31% 46.69% |
53.2% 46.8% |
| Level | Gender | 2017* Starting Point | 2018** Starting Point | Future State |
|---|---|---|---|---|
| Executive Team and Direct Reports | Female Male |
26.2% 73.7% |
30.2% 69.8% |
33% (2019) 67% (2019) |
| Senior Management*** | Female Male |
36.4% 63.6% |
36% 64% |
40% (2020) 60% (2020) |
| All Employees | Female Male |
53.31% 46.69% |
53.2% 46.8% |
By setting targets and undertaking accompanying supportive activity we aim to move closer towards gender balance. We want to ensure that the skills and capabilities of the entire workforce (including women) are recognised and nurtured. This is about levelling the playing field where everyone can succeed on merit.
At the start of 2016 we set ourselves the target to increase the proportion of females at senior levels to 36.6% by the end of 2016. As at 31 December 2016 we achieved 36.4% which is a great start. By setting targets and undertaking accompanying supportive activity we aim to move closer towards gender balance. We want to ensure that the skills and capabilities of the entire workforce (including women) are recognised and nurtured. This is about levelling the playing field where everyone can succeed on merit.
step 2
Board Diversity Policy
LV= recognises and embraces the benefits of having a diverse Board, and sees diversity at Board level as an essential element in maintaining a competitive advantage. A truly diverse Board will include and make good use of differences in the skills, regional and industry experience, education and professional background, race, gender, and other qualities of Directors. With regards to gender diversity on the Board, the Board supports the target for women to represent 30% of board membership by 2020. These differences will be considered in determining the optimum composition of the Board and when possible should be balanced appropriately.
All Board appointments will be made on merit, in the context of the skills and experience the Board as a whole requires to be effective. The Corporate Governance and Nomination Committee (‘Nomco’) reviews and assesses Board composition on behalf of the Board and recommends the appointment of all new Directors to the Board.
In reviewing Board composition, Nomco will consider the benefits of all aspects of diversity including, but not limited to, those described above, in order to maintain an appropriate range and balance of skills, experience and background on the Board.
In identifying suitable candidates for appointment to the Board, Nomco will consider candidates on merit against objective criteria and with due regard for the benefits of diversity on the Board.
As part of the annual performance evaluation of the effectiveness of the Board, Board Committees and individual Directors, Nomco will consider the balance of skills, experience, independence and knowledge of the Society on the Board and the diversity representation of the Board.
step 3
30% Club
In addition to the WIFC, we’ve also signed up as a partner to the 30% Club, a cross-company, cross-sector mentoring scheme
The ultimate goal of the 30% Club is to broaden the pipeline of female talent coming through organisations and make a step-change to the number of women attaining senior and board roles.
With access to mentors who hold senior leadership positions and have substantial business experience we’ll be able to offer invaluable mentoring partnerships to women with high potential to support their career development and growth.
step 4
Women’s Career Development Programme
Engaging with our women, we’re shaping a targeted development programme for 2018 which will act to ‘super charge’ our talented females, who have the desire and potential to thrive.
step 5
Call It Out Diversity Training
We will be delivering training to senior leaders to equip participants with practical tools and techniques to call-out non-inclusive behaviour and language in a brave and non-disruptive manner in real-time to foster a greater inclusive culture.
step 6
Launch our new Diversity and Inclusion Managers’ Toolkit
This toolkit supports our leaders to make small practical changes to increase their teams’ diversity and reach their full potential.
step 7
LV= PACE gender network
We’ll continue to support our ever growing LV= PACE gender network which acts to strengthen role model visibility and amplify male ally advocacy. The network also acts as a forum where women from across LV= can come together, discuss their contribution to the business and any barriers they’re facing and look for solutions. PACE stands for Potential, Ambition, Connections and Empowerment. We’ll also continue to sponsor and develop all of our Diversity and Inclusion networks where we can celebrate and share our different work, life and cultural experiences, demonstrate inclusive behaviours and remove barriers to equality.
We’re confident that as we progress towards our targets - driven by the successful implementation of our programme of activity and an increase in female representation in our senior roles - our gender pay gap will reduce. We know we’re on a journey and we’re excited and committed to making real progress.
Richard Rowney (Chief Executive Office) says: “I confirm the data in this report to be accurate.”