EY is third of Big Four to publish pay gap data
EY has published its gender pay gap figures for the UK, six months ahead of the government’s regulatory deadline of April 2018, and is the third of the Big Four firms to do so
10 Oct 2017
EY has also published its ethnicity pay gap and is calling for other companies to follow its approach to ensure appropriate focus is given to this equally important measure of diversity.
Based on the government’s methodology, EY’s median gender pay gap is 14.8% - compared to the national ONS median 18.1% - and is estimated to have improved by around 10 percentage points compared to 2012. EY’s median ethnicity pay gap for the UK was calculated at 9.8%.
Earlier this year, PwC figures showed it its mean gender pay gap was 13.7%, while the mean bonus gap is 37.5%. Deloitte’s equivalent pay gap was 18.2%, while the firm’s mean bonus gap is 50.9%. EY’s bonus gap is 43.5%.
EY says its internal analysis shows the firm pays equitably for like roles across gender and ethnicity, but that the representation levels in the firm — with more men at senior levels and fewer in less senior positions — means the average male salary (median or mean) is higher than the average female salary, although this is changing.
A similar pattern shows that the ethnic minority population holds fewer senior level roles, contributing to an ethnicity pay gap. A larger proportion of women in EY’s more junior administrative and workplace services has also contributed to its pay gap. EY’s median gender pay gap for client serving staff would be 9.6% and the median ethnicity pay gap would be 8.6%.
EY set down targets to have at least 30% female and 10% black and minority ethnic (BME) representation in its new partner intake, measured on a three year rolling period; in 2017 those figures stand at 27% and 13% respectively. Nearly 40% of EY’s UK board are also women and 6% are BME. EY’s partnership in the UK is 20% female, and 9% BME.
Steve Varley, EY’s UK managing partner, said: ‘We have made strong progress in the last five years to improve the representation of diverse talent, in all its forms, and we have an action plan in place to tackle this business critical issue. However, we know there is more work to do to speed up the process of achieving parity in the workplace and looking at this challenge through the lens of the pay gap figures has given us even greater resolve.
‘Publishing both our gender and ethnicity pay gap will help to ensure that we have an equal and sustained focus internally on improving these measures of diversity. We also hope to advance change by encouraging other businesses to follow this approach. It is a commercial imperative for EY and part of our business purpose - to build a better working world – improving diversity and inclusion in our own business and contributing to change in wider society.’
Under new rules private, public and voluntary sector employers with 250 or more employees are required to publish their gender pay gap and bonus pay gap by April 2018. The regulations will cover approximately 9,000 employers with over 15m employees, representing nearly half of the UK’s workforce.
EY’s Pay gap report 2017 is here.