We believe in the benefits of a diverse workforce and are proud of our inclusive culture.
We recognise that there is a lot more we could be doing as a business to promote and encourage diversity; we also recognise the need to be both pragmatic and aspirational in our approach to doing so. With our employee-led committee, #included, focusing on our diversity and inclusion initiatives, we continue to take further positive steps in the right direction.
Providing transparency on our gender pay gap is something we feel very strongly about. When the legislation came into force in 2017, requiring companies with over 250 employees to publish their gender pay gap report, we were not required to publish due to our headcount, but did so voluntarily. However, due to the growth of our business, we are now required to do so. On the ‘snapshot date’ of 5 April 2020, our headcount was 269 employees (113 females and 156 males) in our largest entity, LGT Vestra LLP. As we are a partnership, our data for our 50 partners has been removed in line with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, however for transparency we have made reference to this in the report.
We want to be transparent with our stakeholders (our clients, staff, parent company LGT Group, and society) about our current gender pay gap position and what we are doing to address this.
The hourly pay data includes basic pay and bonus because of our annual bonus payment date in April. If we remove the bonus element, the mean hourly pay gap is 23.66% and the median is 21.58%
Our mean bonus gap is significant and this is due to a significantly larger number of senior client relationship managers that are male. In addition, we have 16 part-time employees, of which 15 are female. As the bonus figure used for the calculation is the actual bonus payment received rather than taking into account the full time equivalent, this has an impact on the bonus gap.
This is calculated by separating out all employees at 5 April 2020 by gender and accounting for how many of each gender received a bonus in the relevant bonus payment period (6 April 2019 to 5 April 2020).
Some employees at 5 April 2020 were not employed during the bonus payment period or did not have the requisite length of service or performance standards to qualify for a bonus payment.
We divided the hourly rates for our 225 employees into quartiles, from largest to smallest hourly pay rate in order to derive the proportion.
"Our pay gap exists as fewer females hold senior positions within the firm, which is reflective of the financial services industry in general. However, I am confident that we pay our male and female colleagues equally for equivalent work and this remains a priority for our Remuneration Sub-Committee to review on an annual basis. We believe that diversity and inclusion makes business sense on all levels and want to be known for our positive and inclusive culture."
Ben Snee, Chief Executive Officer, LGT Vestra