UK Country Report The Impact of UK Pay Gap Reporting?

APRIL 2020

At 20-first we believe the best measure of progress towards gender-balanced businesses is the make-up of Executive top teams. Here we assess the Top 20 UK companies of the FSTE 100.

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Good news from the UK’s Top 20. Two-thirds of these companies have reached Critical Mass or more, meaning they have 3 or more female executives on their Executive Teams. Men still hold 178 of the 238 UK senior executive roles (75%), so there is more work to do. But the 39% increase in women in top teams, since our last UK scorecard in 2018, is an impressive and little-celebrated shift towards balance. For comparison, between our 2014 and 2018 UK scorecards, there was a 13% rise in female executives. We also see a further improvement in the number of women in significant line roles, increasing by 79% on 2018 numbers to 43%. Are we seeing the impact of the UK’s gender pay gap reporting, first required in 2018?

BALANCED! For the first time, 2 firms – BHP and Compass Group – have achieved gender balance at Executive Team level. They have earned our top ranking of Balanced, which we define as a maximum of 60% of any gender in top leadership. An impressive result, particularly as the majority of both companies’ female executives are also in line roles. Congratulations to both!

MOST IMPROVED Compass has achieved a commendable 223% increase in its female leadership since 2018. In just 2 years, it leapfrogged 2 categories from its Starting position to Balanced. Worth special mention are BP (+17% since 2018) and British American Tobacco (+15% since 2018), although it should be noted that both started from a low base (of zero women) in 2018.

COULD DO BETTER Reckitt Benckiser is now the only company in the UK Top 20 still Asleep with zero women; Barclays’s balance has gone backwards (-27%); and all but one of the Top 20 are headed by men, with GSK’s Emma Walmsley the only female CEO on the list.

Key Findings

The data for this survey is based on information provided by the Top 20 companies by market capitalisation listed on the FTSE 100, as at 2 March 2020. Data is taken from company websites and transparency reports. The Executive Team is defined as the CEO and the executives who report directly to them, or as defined by each company. Some companies list a broader group of ‘Top Leadership’. Where this is the case, we have reviewed the individuals’ profiles and used our best judgement to identify those who report to the CEO, based on job title and role. Each company was given the opportunity to confirm the research for their organisation.

Methodology

Balanced. A maximum of 60% of any gender in top leadership roles is a gender-balanced Executive Team.

Critical Mass. Three or more women on the Executive Team, gender balance starts to become a norm. Probably also indicates a strong, balanced talent pool coming up.

Progressing. Two women on the Executive Team, it becomes harder, consciously or not, for their views to be taken as token.

Starting. One woman on the Leadership Team. A bonus point if she’s in a line or significant P&L role. Staff roles (HR, Legal, Communications) are important, but rarely shift the rules or the model.

Asleep. No women on the Leadership Team. Some companies may have a weak succession pool with little prospect of bringing women on to the top team within 3-5 years.

Our RankingsThe Top 20 companies on the following pages are segmented into 1 of 5 phases:

20-first research analyses progress on gender balance in the top companies of a number of industries and countries, as well as across the Top 100 companies of the Fortune Global 500. For more, go to https://20-first.com/thinking

2020

75%25%

Gender Balance of Executive Teams of the Top 20 UK Companies

GENDER BALANCE SCORECARDs 2020

82%18%

2018

© 20-first 2020 | www.20-first.comInfo: queries@20-first.com © 20-first 2020 | www.20-first.comInfo: queries@20-first.com

2020 Gender Balance Scorecard – UK Country Report 2020 Gender Balance Scorecard – UK Country Report

2020 Gender Balance Scorecard: Top 20 UK Companies

Line or operational roles include CEO, CFO, Country Head, Business Unit Head, Strategy, etc.

Staff or support roles include Communications, HR, Legal, IT, Corporate Relations, etc.

Rio TintoJean-Sébastien Jacques

Executive Committee

Critical Mass

27%

73%

= Line = Staff

Reckitt BenckiserLaxman Narasimhan

Executive Committee

Asleep

0%

100%

= Line = Staff

Compass GroupDominic Blakemore

Executive Committee

Balanced

42%

58%

= Line = Staff

VodafoneNick Read

Executive Committee

Critical Mass

29%

71%

= Line = Staff

National GridJohn Pettigrew

Executive Committee

Critical Mass

38%

62%

= Line = Staff

AstraZenecaPascal Soriot

Executive Committee

Critical Mass

33%

67%

= Line = Staff

LLoyds Banking GroupAntónio Horta-Osório

Executive Committee

Critical Mass

31%

69%

= Line = Staff

GlaxoSmithKlineEmma Walmsley

Executive Committee

Critical Mass

33%

67%

= Line = Staff

British American TobaccoJack Bowles

Executive Committee

Progressing

15%

85%

= Line = Staff

UnileverAlan Jope

Executive Committee

Critical Mass

31%

69%

= Line = Staff

BPBernard Looney

Executive Committee

Progressing

17%

83%

= Line = Staff

HSBC HoldingsNoel Quinn

Executive Committee

Critical Mass

19%

81%

= Line = Staff

PrudentialMike Wells

Executive Committee

Starting

14%

86%

= Line = Staff

BarclaysJes Staley

Executive Committee

Starting

8%

92%

= Line = Staff

Royal Dutch ShellBen van Beurden

Executive Committee

Starting

13%

87%

= Line = Staff

DiageoIvan Menezes

Executive Committee

Critical Mass

38%

62%

= Line = Staff

RELX GroupErik Engstrom

Executive Committee

Critical Mass

30%

70%

= Line = Staff

London Stock Exchange GroupDavid Schwimmer

Executive Committee

Critical Mass

25%

75%

= Line = Staff

BHPMike Henry

Executive Committee

Balanced

44%

56%

= Line = Staff

Anglo AmericanMark Cutifani

Executive Committee

Progressing

14%

86%

= Line = Staff

Line or operational roles include CEO, CFO, Country Head, Business Unit Head, Strategy, etc.

Staff or support roles include Communications, HR, Legal, IT, Corporate Relations, etc.

© 20-first 2020 | www.20-first.comInfo: queries@20-first.com

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Who we areWho we are20-first is one of the world’s leading global consultancies focused on gender balance as a business and economic opportunity.

We work with many of the best known global companies that seek to move from 20th century mindsets, management styles and marketing approaches into more progressive 21st century forms – and to stay first at the game.

Hence our name. It underlies our purpose, and those of the clients we serve.

Wake Up Engage leaders and managers

Start Smart Launch an initiative

with the right people and the right positioning

Align Leaders Get buy-in on why balance is a business

opportunity and how to scale it

Build Gender Bilingual

Management Skills

Equip managers with skills needed to manage across

genders

Sustain the Change

Keep up the momentum, track

progress and reward success

1

2

3

4

5

What makes us different

The business imperative We help companies to unlock 21st century market and talent opportunities

Focus on gender bilingual leaders We equip leaders with a strategic understanding and management competencies to work across genders

Global perspectives We are experienced working with global companies across all regions and cultures of the world

Avivah Wittenberg-Cox

One Key to Gender Balance:Leadership

Strategy Leadership Engagement Talent

Avivah Wittenberg-Cox

Four Phases of Women’s Careers