From 6 April 2017 employers in Great Britain with more than 250 staff are required by law to publish data on the following:
- Gender Pay Gap (mean and median)
- Gender Bonus Gap (mean and median)
- Proportion of men and women in each quartile of the organisation’s pay structure
- Proportion of men and women receiving bonuses
Phoenix is an organisation committed to doing the right thing. We are committed to treating our customers, shareholders and colleagues fairly, and aim to be a responsible corporate citizen. We know that diverse companies which represent the communities and customers they work with perform better, however we also focus on fairness and inclusion simply because it is the right thing to do.
At Phoenix, the difference in average pay between men and women is a consequence of the fact that there are more men than women in senior positions at Phoenix. Phoenix has been working to improve gender diversity at senior levels within the organisation prior to the Government’s requirement for us to publish these statistics, and has a number of initiatives underway.
Gender Pay and Bonus Gap
Pay quartile statistics – proportion of males and females in each quartile band
Our statistics are calculated based on data gathered on “Full Pay Relevant Employees” in the payroll period covering 5 April 2017. Of the employing entities within the Group, only PGMS has the required 250+ employees and so it is PGMS employees who are included in the regulatory reporting. This can be considered a representative sample as the majority of Group employees are employed by the PGMS entity.
Pay data is based on hourly pay in the pay period inclusive of 5 April. Any payments under our annual and long term incentive plans paid in the 12 month period preceding 5 April 2017 are taken into account for the Bonus Gap figure.
The Gender Pay Gap is the difference in the total average earnings of males and females, regardless of the nature of their work, across an organisation. It does not compare pay on an individual level for males and females undertaking the same role.
The Gender Bonus Gap is the difference between average actual bonus payments of males and females across the organisation.
Equal Pay refers to the legal requirement that male and female employees who are engaged in equal or similar work, or work of equal value, must receive equal pay. Having reviewed our reward principles we are confident that our Gender Pay Gap and Bonus Pay Gap are not caused by Equal Pay issues.
Our research shows that the Phoenix Gender Pay Gap is a consequence of the fact that there are more men than women in senior positions. Our Bonus Gap similarly reflects this.
About our bonus schemes
Phoenix doesn’t underestimate the importance of taking steps to close our Bonus Pay Gap. However to help understand this gap better it’s worth taking into account that a number of factors have impacted the gap shown.
- A consequence of having more men in senior positions is that higher target levels for annual incentives for senior staff, and other elements of senior remuneration such as the Long Term Incentive Plan (LTIP), contribute to our Bonus Pay Gap.
- The LTIP scheme for senior managers awards shares in Phoenix subject to prudent measures of long term company performance. Usually, only one scheme will vest in any financial year. However, for reasons of corporate governance our 2013 scheme began later than usual, meaning that the 2013 and 2014 schemes paid out in in the same qualifying period (that defined in the GPG statistics requirements). In a standard year when only one LTIP vests, the bonus gap would have reduced by c7%.
- This figure uses an average of actual bonus paid across the total number of male and female employees, not equivalent full time employees or full time equivalent values. At Phoenix we have more females than males working in part time roles; given part time workers receive a smaller quantum of bonus relative to the hours worked, this reduces the average figure per female.
Tackling our pay gap
We are committed to reducing the Gender and Bonus Pay Gaps, and have plans in place to tackle barriers to progression and ensure that opportunity is open to all. Our aim is to create an environment where all colleagues feel supported in developing their careers.
Key actions we are taking include:
- Diversity and the targets we have set ourselves have the highest visibility within Phoenix. Group Finance Director Jim McConville chairs the Diversity and Inclusion Committee which has broad representation from across the business. The Executive Committee (ExCo) receives a quarterly update, and the Nomination Committee of the Board specifically monitors our progress on these matters.
- All ExCo members have a specific objective to track their proportional contribution to our Diversity and Inclusion targets and a specific Diversity scorecard.
- Our succession and recruitment processes fully reflect our ambition to improve our gender balance over time.
- All employees have obligatory unconscious bias training, with the aim of educating colleagues on the role unconscious bias plays in decisions around recruitment and career progression.
- We have refreshed our flexible working guidelines. Our colleagues have told us that working from home, or working flexibly inside and outside of traditional office hours, can empower them to meet their work and personal obligations in a more productive and efficient manner. Our refreshed flexible working guidelines have empowered local line managers to support colleagues who are interested in formal and informal flexible working.
- We have also established a number of networks to provide support and encourage people, including a Working Parents’ Network, Professional Women’s Network and an LGBT Network
Combatting a long-established gender imbalance in financial services is a priority for the entire industry, not just for Phoenix. We are firmly committed to playing our part in addressing the Gender Pay Gap, and in the longer term developing the next generation of female leaders, and aim to narrow the gap in the future.
This report covers employees of Pearl Group Management Services, the main employing entity for The Phoenix Group. The report covers employees at all levels, including the executive team. As Group Finance Director for the Phoenix Group, I, James McConville, can confirm that the information contained herein is accurate.
Group Finance Director