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FORD MOTOR COMPANY LIMITED GENDER PAY REPORT 2019

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Page 1: FORD MOTOR COMPANY LIMITED GENDER PAY REPORT 2019 · 2020-06-11 · GENDER PAY REPORT 2019 FORD MOTOR COMPANY LIMITED The difference in Mean and Median Pay of Male and Female employees

FORD MOTOR COMPANY LIMITED

GENDER PAY REPORT2019

Page 2: FORD MOTOR COMPANY LIMITED GENDER PAY REPORT 2019 · 2020-06-11 · GENDER PAY REPORT 2019 FORD MOTOR COMPANY LIMITED The difference in Mean and Median Pay of Male and Female employees

WHAT IS GENDER PAY GAP REPORTING?

What is Mean Pay?We add together the hourly pay for all male employees, then divide by the number of male employees. We do the same for all female employees and then compare the average (or mean) hourly pay.*

Mean Female Hourly Pay

What is Median Pay?We rank all male employees in order of their hourly pay. We do the same for all female employees, and then compare the pay of the “middle female” and the “middle male”.*

Lowest Hourly Pay Highest Hourly Pay

What is a Pay Quartile?We rank the workforce from lowest to highest paid, then split into four equal groups (quartiles), and state the percentage of men and women in each group.

Lowest Hourly Pay

Highest Hourly PayQuartile 1

LowerQuartile 3

Upper MiddleQuartile 2

Lower MiddleQuartile 4

Upper

What measures must be reported?Since April 2017, organisations with over 250 employees must report annually:• The difference in the Mean and Median Pay of Male and

Female employees - The Gender Pay Gap• The difference in the Mean and Median Bonus Pay of Male

and Female employees - The Gender Bonus Pay Gap• The proportion of Male and Female employees who

receive a Bonus• The percentage of Male and Female employees in each

Pay Quartile

Gender Pay Gap reporting seeks to explain the difference in the pay of male and female employees, according to a series of measures as defined by UK Government.

+ + =

No. of Female Employees

Mean MaleHourly Pay

No. of Male Employees

+ + =

Male Female

Key

*The same principles apply in calculating the mean and median bonus pay gap

2

WHAT IS GENDER PAY GAP REPORTING?

What is Mean Pay?We add together the hourly pay for all male employees, then divide by the number of male employees. We do the same for all female employees and then compare the average (or mean) hourly pay.*

Mean Female Hourly Pay

What is Median Pay?We rank all male employees in order of their hourly pay. We do the same for all female employees, and then compare the pay of the “middle female” and the “middle male”.*

Lowest Hourly Pay Highest Hourly Pay

What is a Pay Quartile?We rank the workforce from lowest to highest paid, then split into four equal groups (quartiles), and state the percentage of men and women in each group.

Lowest Hourly Pay

Highest Hourly PayQuartile 1

LowerQuartile 3

Upper MiddleQuartile 2

Lower MiddleQuartile 4

Upper

What measures must be reported?Since April 2017, organisations with over 250 employees must report annually:• The difference in the Mean and Median Pay of Male and

Female employees - The Gender Pay Gap• The difference in the Mean and Median Bonus Pay of Male

and Female employees - The Gender Bonus Pay Gap• The proportion of Male and Female employees who

receive a Bonus• The percentage of Male and Female employees in each

Pay Quartile

Gender Pay Gap reporting seeks to explain the difference in the pay of male and female employees, according to a series of measures as defined by UK Government.

+ + =

No. of Female Employees

Mean MaleHourly Pay

No. of Male Employees

+ + =

Male Female

Key

*The same principles apply in calculating the mean and median bonus pay gap

2

WHAT IS GENDER PAY GAP REPORTING?

What is Mean Pay?We add together the hourly pay for all male employees, then divide by the number of male employees. We do the same for all female employees and then compare the average (or mean) hourly pay.*

Mean Female Hourly Pay

What is Median Pay?We rank all male employees in order of their hourly pay. We do the same for all female employees, and then compare the pay of the “middle female” and the “middle male”.*

Lowest Hourly Pay Highest Hourly Pay

What is a Pay Quartile?We rank the workforce from lowest to highest paid, then split into four equal groups (quartiles), and state the percentage of men and women in each group.

Lowest Hourly Pay

Highest Hourly PayQuartile 1

LowerQuartile 3

Upper MiddleQuartile 2

Lower MiddleQuartile 4

Upper

What measures must be reported?Since April 2017, organisations with over 250 employees must report annually:• The difference in the Mean and Median Pay of Male and

Female employees - The Gender Pay Gap• The difference in the Mean and Median Bonus Pay of Male

and Female employees - The Gender Bonus Pay Gap• The proportion of Male and Female employees who

receive a Bonus• The percentage of Male and Female employees in each

Pay Quartile

Gender Pay Gap reporting seeks to explain the difference in the pay of male and female employees, according to a series of measures as defined by UK Government.

+ + =

No. of Female Employees

Mean MaleHourly Pay

No. of Male Employees

+ + =

Male Female

Key

*The same principles apply in calculating the mean and median bonus pay gap

2

Page 3: FORD MOTOR COMPANY LIMITED GENDER PAY REPORT 2019 · 2020-06-11 · GENDER PAY REPORT 2019 FORD MOTOR COMPANY LIMITED The difference in Mean and Median Pay of Male and Female employees

GENDER PAY REPORT 2019FORD MOTOR COMPANY LIMITEDThe difference in Mean and Median Pay of Male and Female employees - Gender Pay Gap

The proportion of Male and Female employees who receive a bonus

The difference in the Mean and Median Bonus Pay of Male and Female employees - Gender Bonus Pay Gap

The percentage of Male and Female employees in each Pay Quartile

The year over year negative gender pay gap continues to reflects the distribution of women within our workforce. Within the significantly smaller female population, we see proportionately more women in non-production roles and managerial roles.

In 2019, we continue to see a higher proportion of female employees receiving a bonus than male employees within the organisation. The bonus payments included in the analysis can range from fixed amount recognition awards through to corporate bonus payments for middle and senior management. During this review period, the number of payments made in bonus awards were significantly reduced versus prior years.

When we review the results of the last three years, we see a noticeable change in the mean bonus gap in each year. Year over year, the actual bonus elements paid have been different which has contributed towards this variation. For example, in 2018 a one-time performance management lump sum payment was made to employees, however, this payment was not made in 2017 or in 2019. In 2019, the results are linked to some one-time awards made to individual employees and historical changes in our Long Term Incentive Programme for Senior Leaders (stock options) which previously had an exercise period of 10 years.

The median gap can be explained by the variations in relatively low value payments associated with recognition awards and various suggestion schemes which reflects the distribution in our organisation, with the larger male population in production roles.

The data is relatively unchanged from prior years and shows that overall female representation is low throughout all levels of the organisation, but slightly higher in the Upper Pay Quartiles. This reflects the fact that women are most likely to join the organisation within the commercial functions at graduate level and progress through to management positions.

2017 2018 2019

Mean -1.7% -2.0% -3.1%

Median -3.5% -5.2% -6.0%

2017 2018 2019

Male 11.4% 17.1% 7.6%

Female 16.6 % 28.6% 9.1%

2017 2018 2019

Mean 6.5% 18.4% -6.3%

Median 57.5% 0.0% -307.8%

Upper Quartile

Upper Middle Quartile

Lower Middle Quartile

Lower Quartile

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

89.5% 10.5%

90.8% 9.2%

88% 12%

86.7% 13.3%

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

85.9% 14.1%

13.3%

12.3%

11.0%

86.7%

87.7%

89.0%

Upper QuartileUpper MiddleQuartileLower MiddleQuartile

LowerQuartile

2018 2017

Mean -2.0% -1.7%

Median -5.2% -3.5%

2018 17.1% 28.6%

2017 11.4% 16.6%

The proportion of Male and Female employees who receive a Bonus

Mean

Median

2018 2017

18.4% 6.5%

0% 57.5%

The higher mean and median pay for female employees continues to reflect their distribution in our organisation; within the smaller female population, we see proportionately more women in non-production and managerial roles. The small increase in the gender pay gap compared to 2017 is caused by atemporary fluctuation in the number of employees not meeting the criteria tobe included in the calculation during the snapshot period, rather than asignificant material change.

The bonus payments included in the analysis range from fixed amount recognition awards through to corporate bonus payments for middle and senior management.

During the period in question, the number of employees who received a bonus increased slightly versus the prior year. This was predominately due to a one-time performance management lump sum payment made to management employees in 2018; with a slightly higher proportion of the smaller female population receiving such an award.

The mean bonus gap is partly explained by the higher proportion of male employees in the most senior management positions. In 2018 it is also linked to the higher proportion of female managers working part-time who received the one-time performance management lump sum payment, which is pro rated for part-time employees. The median gap can be explained by the high number of employees who received the performance management lump sum payment. Around 85% of the population who were awarded this payment received the same award value.

The female representation is slightly higher in the Upper Pay Quartiles, with the highest level of representation in the Upper Quartile, reflecting the fact that the highest proportion of female employees are in our management population.

The small increase in the proportion of women at all levels compared to2017 is caused by a temporary fluctuation in the number of employees notmeeting the criteria to be included in the calculation during the snapshotperiod, rather than a significant material change.

2018

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CREATING TOMORROW, TOGETHERConsistent with prior years and the overall Automotive Industry, our 2019 results reflect a negative gender pay gap that is significantly below the national average of 17.3%.

However, we also recognise that our results are reflective not only of a gender imbalance in our workforce and our industry, but a wider gender segregation within occupations across the UK.

To change this, we recognise is not a short-term fix, but requires a sustainable and committed investment in a long-term gender balance strategy which alongside external challenges also includes addressing any internal barriers that may prevent employees reaching their full potential within our business.

Our Gender Balance Strategy is therefore built around three key drivers:

We achieve this through a series of key partnerships with educational institutions and charities including the Primary and Secondary Engineer programmes, First Lego League and the Greenpower Education Trust.

In addition, we recognise the importance of female role models in challenging traditional gender stereotypes and expanding the career choices for young women in particular. Through insight days, work experience and large-scale events such as IT Girls’ Day and International Women in Engineering Day, we seek to connect and engage young women in education with the talented women who work for us in order to provide a realistic understanding of the range of careers within our industry.

Investing in the Talent of The Future In order to increase the number of female engineers and, then crucially, keep them in the profession, girls need to know what an engineering career involves and the broad range of skills which are valuable to engineers1. Institution of Mechanical Engineers

Attracting more women into STEM occupations is a significant UK challenge. Currently women make up only 16% of graduate engineers2 and hold 10.3% of engineering and 24% of core-STEM positions nationally3. In addition, research has shown that the decision to become an engineer is taken much earlier than other professions and significantly before the age of 18. It is also more likely to be based on either knowing someone already working in the engineering sector such as a family member or friend or having academic success in a related subject without necessarily a realistic knowledge of the career itself4.

In Ford we recognise the important role our employees’ knowledge and passion, combined with our workplace environment can play in supporting teachers and students from a range of backgrounds to increase understanding, develop confidence and gain hands-on experience in teaching and learning engineering skills. Through providing such opportunities we hope we may ignite future career aspirations in our industry.

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1 Stay or Go? The Experience of Female Engineers in Early Career Institution of Mechanical Engineers2Cited by the Royal Academy of Engineering in Closing the Engineering Gender Pay Gap as data taken from engineering UK 2018: The State of Engineering3WISE 2019 Workforce Statistics4Stay or Go? The Experience of Female Engineers in Early Career Institution of Mechanical Engineers

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CREATING TOMORROW, TOGETHERAttracting and Developing Gender Diversity at All LevelsOver the last three years, we know that the gender profile of our workforce has remained relatively consistent.

Women continue to be predominately employed in the commercial functions, and significantly less so in operational manufacturing and engineering roles. We also recognise we need greater gender balance at all levels of our business.

In addition to investing in the future, we know that we must also focus on ensuring our current internal systems and processes are free from bias and enable all employees to achieve their true potential regardless of gender.

As such we play close attention to the Government Equalities Office’s recommendations for employers. These include:

In recruitment using:

• skill- based assessment tasks within both operational, apprentice and graduate recruitment hiring

• structured interviews for all recruitment and promotion interviews with a standardise marking criteria, underpinned by recruitment training

• monitoring processes to understand the diversity of applicants and recruitment outcomes

In addition, we are reviewing the language and images used in advertising to reflect gender balance

Having objectivity in performance management by:

• Providing clear information and training to managers to enable objective, evidence-based performance assessments

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What’s changed since the last report?Since the last gender pay report, we have significantly restructured our business and sought to ensure that this change has not had a detrimental impact on our internal demographics. Internal monitoring of our processes during restructure has been a key element of our action plan over the last 12 months.

Despite limited recruitment, we have also seen a positive trend in STEM apprentice recruitment with 17% of new apprentice hires being female, compared to the national average of 9%7. We recognise there is more work to do in this area and across recruitment as a whole to achieve complete gender balance.

We have also sought to increase our training and development materials around unconscious bias and wider diversity and inclusion through culture awareness training.

Next Steps:Over the next 12 months as the Company moves through restructuring and looks to explore new ways of working, we will continue to explore actions and monitor outcomes that help to drive increased gender balance both internally as part of the employee career life cycle and externally through recruitment actions.

Having a diversity position and structure:

For more than two decades, there has been a Diversity and Inclusion Manager position, working with the Ford of Britain Board and a UK structure of Diversity Councils that stretch across the UK to drive national and local diversity action plans and monitor outcomes.

Offering key development and networking opportunities by:

• providing mentoring opportunities across various levels of the business, including the potential to have female to female mentors / mentees

• providing formal and informal networking opportunities that enable employees to share information, careers advice and support aspirations, via our internal employee resource group Women of Ford and our external partnerships with the International Women of Excellence, and more recently Lean In

• utilising key dates such as International Women’s Day and International Women in Engineering Day to recognise the female talent within Ford and celebrate their achievements internally and externally.

5 Reducing the gender pay gap and improving gender equality in organisations: Evidence-based actions for employers – Government Equalities Office and The Behavioural Insights Team6Closing the gender pay gap (2018) - Equality and Human Rights Commission7The apprenticeships programme: progress review Ninety-Eighth Report of Session 2017–19. House of Commons Committee of Public Accounts

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CREATING TOMORROW, TOGETHERCreating an Environment to Thrive:In Ford we know that people thrive when they can be themselves in the workplace. To do this means creating an environment that not only respects and supports the needs of employees at work, but also values their lives outside of the workplace.

Research suggests that two-thirds of female engineers do not resume their engineering career after taking maternity leave8. In Ford we have an average retention rate of over 90% for all employees taking maternity and adoption leave not just immediately following leave, but also after two years of returning.

In addition we have a very high rate of retaining women after 2 or more periods of maternity or adoption leave.

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What’s changed since the last report?Since the last report we have further increased support and networking opportunities for new parents through piloting a parenting buddy scheme for parents to be and developing a new return to work workshop aimed at supporting employees transition back into work from parenting leave.

Recognising the impact that health related changes can have on women in the workplace and the stigma that surrounds certain issues, we have also used World Menopause Day as an opportunity to raise awareness of this condition and the additional resources available within Ford to facilitate supportive actions.

8Stay or Go? The Experience of Female Engineers in Early Career Institution of Mechanical Engineers

Next Steps: Over the next 12 months we will build on the foun-dation work established over the last 12 months in relation to supporting parents transition back into the workplace and will look to increase the roll out of the parenting buddy scheme.

We will also continue to explore wellbeing actions that may impact women at key career points.

Creating an environment and company culture that retains employees during life changing events is a significant part our strategy and includes:

• having a long standing flexible / agile working policy that offers a range of different ways of working to enable employees’ greater choice in determining home and work-life balance

• offering maternity workshops, subsidised parent craft classes, enhanced maternity pay, dedicated maternity advisors and support on returning to work to make the transition to becoming a parent as smooth as possible and a positive work experience

• offering enhanced paternity pay and providing paternity workshops which challenge stereotypes, encourage flexible / agile working and recognise the increased desire for fathers and partners to be more actively involved in all aspects of parenting

• recognising the importance of wellbeing and positive mental health by providing employees with increased awareness, training and access to support including Mental Health First Aiders throughout the organisation. As well as focusing on significant life-changing moments, such as discussing post-natal depression and the menopause and andropause with men and women

• having dedicated employee resource groups for employees with parenting and caring responsibilities, to provide peer to peer support, advice and networking opportunities.

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Creating Tomorrow Together is our company-wide plan that guides how we as a Company are transforming to lead the next revolution in transportation. It depends on every department, every team and every employee working with us to achieve our goals.

As a business we know the significant benefits a diverse workforce brings to the workplace in terms of increased diversity of thought and experience, innovation, team working and customer satisfaction.

I am incredibly proud of the talented women who work for us and see directly the difference they make to our success as a business and to the communities that surround us through outreach work. I am also delighted to see their hard work and achievements often being recognised outside the Company too; be it academic success for our apprentices or professional recognition through the Autocar Great British Women in the Car Industry Awards.

I therefore welcome the opportunity to share with you our 2019 Gender Pay Report, which identifies some of the challenges we face, the progress we have made since 2018 and our ongoing commitment to delivering our Gender Balance Strategy. I also confirm that the gender pay gap information contained in this report is accurate.

  Graham HoareChairman Ford Britain

Published Date: April 2020