PwC last of Big Four to report partner gender pay gap
14 Mar 2018
PwC is the last of the Big Four to publish its revised pay gap data by gender and ethnicity to include partners, with the results showing a mean gender pay gap of 43.8%
14 Mar 2018
Under new reporting pay gap guidelines, partners were previously not included on the basis that they are owners of the business and receive a profit share that reflects both the job they do and a return on the equity they have invested in the business.
In response to calls for greater transparency, earlier this month Deloitte calculated its gender pay gap at 43.2%, once partner pay was included, with EY publishing a figure of 38.1% and KPMG 42%.
PwC’s updated pay gap now combines the total earnings of employees and partners across the whole firm resulting in a mean gender pay gap of 43.8% and a median gap of 18.7%. The Black Asian and Minority Ethnic (BAME) pay gap for employees and partners is 35.9%, with the median gap, 11.7%.
PwC’s mean gender pay gap for partners is 17.1% and the median gap is 20.5% and while the mean BAME partner pay gap, is 5.4% and the median gap is 0%.
Under the government's methodology, which came into force in April 2017, PwC’s mean gender pay gap is 13.7% and its mean bonus gap is 37.5%.
Kevin Ellis, chairman and senior partner at PwC, said: ‘To be clear, we pay our women and men equally for doing the same or equivalent jobs across our business. The issue is one of senior representation rather than pay inequality and it is not good enough. We are continuing to focus on improving this position to meet our gender and ethnicity targets.
‘We have had a degree of recent success in promoting female and BAME employees into the partnership, but that expanded cohort of female and BAME partners remains at the junior end of the partnership, such that the partner pay gap will only reduce as they progress through the role levels and their pay increases.’
PwC says its partner pay gap has been calculated based on total distributable profits and the calculations are not based on full-time equivalent pay, but actual pay, which worsens the reported position: 7.4% of the firm’s partners work less than standard hours, but the split is 24% of the female partners and 3.6% of the male partners.
Report by Pat Sweet