Discrimination | Mind the Gender Pay Gap

Developing and communicating your Long Term Incentive plan to help address gender pay gap

As part of the gender pay gap series from FTI Consulting, this article focuses on the impact of gender pay gap reporting as you design and communicate your equity-based Long Term Incentive Plan (LTIP)  – be it an existing or proposed new plan(s).

As of 4 April 2018, the Equality Act (Gender Pay Gap Information) Regulations 2017 legally requires all organisations with over 250 employees to publish their annual gender pay gap, with the final aim of providing organisations with a benchmark for their industry. This includes the difference between mean and median pay of men and women, the differences in the bonuses they receive and the proportion of each gender receiving a bonus.

Gender pay gap reporting has dominated the headlines this summer. Since the legislation came into force in April 2017, 42 organisations including the BBC, TSB Bank, PwC and Virgin Money have complied (as of early August 2017). Sparks flew, when, under the terms of its new Royal Charter, the BBC revealed a gender disparity in the pay of its stars earning over £150,000.